The UAE’s economy maintained strong momentum in the first quarter of 2025, with real gross domestic product rising 3.9 per cent year-on-year to Dh455 billion, according to preliminary estimates released by the Federal Competitiveness and Statistics Centre (FCSC).
Non-oil GDP posted 5.3 per cent growth, reaching Dh352 billion, while oil-related activities accounted for 22.7 per cent of GDP.
The UAE broke another record in non-oil economic activities that contributed 77.3 per cent of total real GDP as the country continues to diversify its economy.
Non-oil contributions to GDP stood at 71.3 per cent in 2020 and have gradually increased over the past five years.
The figures highlight the “strength and resilience of the national economy and its ability to continue its exceptional growth journey”, Abdullah bin Touq, Minister of Economy and Tourism, said in a Wam report on Sunday.
He noted that the performance reflects “the confidence of investors and the international community in the UAE’s business and investment environment, which has become a global model for adopting advanced economic policies and developing a legislative infrastructure that stimulates growth”.
The minister added that the milestone non-oil contribution affirms the UAE’s success in implementing its diversification strategy, aligned with the We the UAE 2031 vision, which aims to raise the country’s GDP to Dh3 trillion by the next decade.
Hanan Mansour Ahli, director of the FCSC, said that the results confirm the efficiency of the UAE’s economic model and the government’s success in developing sectors on a sustainable basis. She said the non-oil growth rate of more than 5 per cent reflects the UAE’s push to build a knowledge – and innovation-driven economy that empowers businesses and entrepreneurs.
Manufacturing emerged as the fastest-growing sector in the first quarter of 2025, expanding 7.7 per cent compared with the same period last year. The finance and insurance and construction sectors followed with 7 per cent growth each, while real estate activities grew by 6.6 per cent and trade by 3 per cent.
In terms of contribution to non-oil GDP, trade led with 15.6 per cent, followed by finance and insurance (14.6 per cent), manufacturing (13.4 per cent), construction (12.0 per cent), and real estate activities (7.4 per cent).
The latest figures reinforce the UAE’s trajectory towards sustainable, diversified growth, supported by policies that emphasise innovation, investment, and global competitiveness.
Trade agreements
The UAE has concluded 28 Comprehensive Economic Partnership Agreements (Cepas) to date with 10 already in effect and easing trade.
In the first quarter of 2025, the UAE’s non-oil foreign trade surged sharply with partners under these agreements – including a 33 per cent increase with India, 41 per cent with Turkey, 29 per cent with the US, and 15 per cent with China.
Trade with non-Cepa partners also grew, while exports rose from 18.4 per cent to 21.4 per cent of non-oil trade, driven by strong demand for UAE-made goods and services.
In the first half of 2025, Abu Dhabi alone recorded a 34.7 per cent jump in non-oil foreign trade, reaching Dh195.4 billion – a testament to its strategic role as a logistics and trade hub, supported by its geographic advantage and modern infrastructure.
The UAE and EU have commenced free trade negotiations, aiming to enhance trade in goods, services, investments, and strategic sectors such as renewable energy, healthcare, and AI.
In April, UAE President Sheikh Mohamed and EU Commission President Ursula von der Leyen agreed to initiate the free trade agreement negotiations, with the official talks beginning in May.
The EU remains the UAE’s second-largest trading partner with 8.3 per cent of non-oil trade.
Strategic investments
The UAE’s progress has also been underpinned by major strategic investments across high-growth industries. In first quarter of 2025, there was a strong wave of mergers and acquisitions, with 63 deals worth more than $20 billion according to Wam in May, marking the highest in the Mena region.
Notably, Abu Dhabi’s Group 42 acquired a significant stake in Khazna Data Centres, underscoring the nation’s commitment to expanding its digital economy and positioning itself as a regional technology hub.
The aviation sector also provided a substantial boost, following Etihad Airways’ landmark $14.5 billion agreement with Boeing and GE Aerospace for 28 wide-body aircraft powered by next-generation engines. This deal not only strengthens the UAE’s aviation industry but also drives demand in related sectors such as logistics, maintenance, and tourism.
Clean energy partnerships are also emerging as a cornerstone of the UAE’s non-oil growth. In January, the UAE signed a €1 billion agreement with Italy and Albania to develop renewable projects, including solar and wind infrastructure.
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Living in…
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
KILLING OF QASSEM SULEIMANITest
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Five films to watch
Castle in the Sky (1986)
Grave of the Fireflies (1988)
Only Yesterday (1991)
Pom Poki (1994)
The Tale of Princess Kaguya (2013)
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Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
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Company%20Profile
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Name: Brendalle Belaza
From: Crossing Rubber, Philippines
Arrived in the UAE: 2007
Favourite place in Abu Dhabi: NYUAD campus
Favourite photography style: Street photography
Favourite book: Harry Potter
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The five pillars of IslamKilling of Qassem SuleimaniZayed Sustainability PrizeUAE currency: the story behind the money in your pocketsLabour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
– Abdullah Ishnaneh, Partner, BSA Law
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Name: Tratok Portal
Founded: 2017
Based: UAE
Sector: Travel & tourism
Size: 36 employees
Funding: Privately funded
Teaching your child to save
Pre-school (three – five years)
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six – eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine – 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 – 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 – 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 – 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
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MATCH INFO
Karnataka Tuskers 110-5 (10 ovs)
Tharanga 48, Shafiq 34, Rampaul 2-16
Delhi Bulls 91-8 (10 ovs)
Mathews 31, Rimmington 3-28
Karnataka Tuskers win by 19 runs
Killing of Qassem SuleimaniKey facilities
Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills
The Rub of Time: Bellow, Nabokov, Hitchens, Travolta, Trump and Other Pieces 1986-2016
Martin Amis,
Jonathan Cape
Results:
5pm: Maiden (PA) | Dh80,000 | 1,200 metres
Winner: Jabalini, Szczepan Mazur (jockey), Younis Kalbani (trainer)
5.30pm: UAE Arabian Derby (PA) | Prestige | Dh150,000 | 2,200m
Winner: Octave, Gerald Avranche, Abdallah Al Hammadi
6pm: Arabian Triple Crown Round 3 (PA) | Group 3 Dh300,000 | 2,200m
Winner: Harrab, Richard Mullen, Mohamed Ali
6.30pm: Emirates Championship (PA) | Group 1 | Dh1million | 2,200m
Winner: BF Mughader, Szczepan Mazur, Younis Al Kalbani
7pm: Abu Dhabi Championship (TB) | Group 3 | Dh380,000 | 2,200m
Winner: GM Hopkins, Patrick Cosgrave, Jaber Ramadhan
7.30pm: Wathba Stallions Cup (PA) | Conditions | Dh70,000 | 1,600m
Winner: AF La’Asae, Tadhg O’Shea, Ernst Oertel