UAE Economy Poised for 4.8% Growth in 2025
Ashwini Gambo
UAE Set to Lead Gulf with 4.8% Growth in 2025-
The UAE economy is projected to grow by 4.8% in 2025, making it the fastest-expanding economy in the Gulf region despite ongoing global economic challenges. The forecast reflects the country’s strong diversification strategy, steady investment inflows, and confidence in both oil and non-oil sectors.
According to economists, Abu Dhabi’s GDP is expected to climb by around 6%, powered by a rise in oil output as OPEC+ production cuts ease and sustained momentum in the real estate sector. Property transaction data from the capital shows activity rising more than 40% in the first half of 2025, supported by population growth, investor demand, and large-scale infrastructure projects.
Non-Oil Sectors Driving Growth-
While hydrocarbons remain a key pillar, the UAE’s non-oil sectors including tourism, finance, logistics, and real estate are playing an increasingly dominant role in sustaining momentum. Dubai’s continued position as a global tourism and trade hub, combined with government-backed innovation initiatives, has strengthened economic resilience across industries.
Josh Gilbert, Market Analyst at trading platform eToro, said:
“The UAE offers investors a rare combination of growth and stability. Corporate earnings remain resilient, IPO activity is robust, and equity markets like the ADX and DFM are near record levels. These fundamentals, coupled with investor confidence, make the UAE an attractive market even in volatile conditions.”
Robust IPO Market and Investor Confidence-
The UAE’s IPO market continues to outperform regional peers, attracting significant regional and global capital. Several listings in 2025 have been heavily oversubscribed, underlining investor trust in the UAE’s corporate governance and policy environment.
Analysts point out that robust government investment, rising dividends, and a young, growing population further reinforce the nation’s economic stability. The combination of high fiscal discipline and ongoing economic diversification efforts continues to draw long-term investors to the country.
Outlook: Strength in Stability-
Abu Dhabi’s projected 6% growth and the UAE’s strong overall economic performance reflect a confident, diversified economy that is adapting effectively to global shifts in energy and finance. “The UAE’s combination of strong growth, policy stability, and market depth positions it as a key investment destination in the region,” Gilbert added.
With major projects in energy transition, advanced manufacturing, and technology, the UAE is not only sustaining its growth but also positioning itself as a leading innovation hub in the Middle East.
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