ABU DHABI, December 18, 2025: The United Arab Emirates strengthened its position in 2025 as one of the world’s fastest-growing economies, driven by broad-based expansion in non-oil sectors, rising trade volumes, and sustained investment inflows. Official data and global economic assessments indicated continued growth momentum supported by sound fiscal management and a resilient financial system. The Ministry of Economy reported that non-oil foreign trade increased 24.5 percent in the first half of 2025 to AED 1.7 trillion, nearly 14 times the global trade growth rate. The expansion reflected higher re-exports, diversified industrial output, and expanding logistics capabilities. The UN Conference on Trade and Development ranked the UAE 10th globally for inbound foreign direct investment in 2024, totaling AED 167.6 billion.
Trade, investment, and entrepreneurship drive UAE’s sustained economic performance. (AI-generated image)
The International Monetary Fund raised its 2025 growth forecast for the UAE to 4.8 percent, citing strong economic fundamentals. Global rating agencies Fitch, Moody’s, and S&P Global reaffirmed the country’s sovereign credit ratings, highlighting fiscal prudence, steady reserves, and a stable banking environment. The Central Bank of the UAE reported total banking assets reaching AED 5.2 trillion at the end of September 2025, with gross credit up to AED 2.48 trillion, reflecting increased lending to businesses and consumers. The Central Bank also launched the UAE National Financial Inclusion Strategy 2026–2030, designed to expand access to financial services and strengthen the resilience of the financial sector. Real GDP grew 4.2 percent year-on-year in the first half of 2025 to AED 929 billion, according to national data. Non-oil GDP rose 5.7 percent to AED 720 billion, accounting for 77.5 percent of total output, while oil-related activity contributed 22.5 percent.
The federal government approved the largest budget in its history for 2026, at AED 92.4 billion, reflecting continued expenditure on infrastructure, social programs, and development projects. The Ministry of Industry and Advanced Technology signed five memoranda of understanding with national banks to provide over AED 40 billion in financing to support industrial growth. The fourth edition of the “Make it in the Emirates” initiative concluded with industrial project commitments exceeding AED 11 billion and record participation of more than 122,000 visitors, reinforcing the country’s manufacturing ambitions. The UAE Cabinet approved the National Investment Strategy 2031, encompassing 12 programmes and 30 initiatives aimed at increasing annual foreign investment inflows from AED 112 billion in 2023 to AED 240 billion by 2031. The plan also targets a rise in total foreign investment stock from AED 800 billion to AED 2.2 trillion.
IMF upgrades UAE economic outlook for 2025
The Cabinet authorized the establishment of the National Investment Fund with an initial capital of AED 36.7 billion to support priority sectors. The UAE Strategy for Islamic Finance and Halal Industry was also endorsed to enhance the country’s global standing in Sharia-compliant finance and trade. To strengthen entrepreneurship, the UAE launched the “UAE Future 50” initiative covering 15 sectors and introduced a national campaign positioning the country as a global center for entrepreneurs. The initiative aims to train and support 10,000 entrepreneurs through incubation programs and targeted funding. Between January and November 2025, more than 220,000 new companies were registered across the country. Over 36,000 new trademarks were also recorded during the same period, marking a 48.2 percent increase compared with a year earlier.
By the end of September, the UAE had registered 402,311 national and international trademarks. Nearly 20,000 trademarks were added in the first half of 2025, representing a 129 percent increase from the previous year. The rise underscored the country’s growing role as a hub for global commerce and intellectual property. The UAE continued expanding its network of comprehensive economic partnership agreements to strengthen trade connectivity with key markets. The “UAE Global Centre of Trade” program was launched to attract the world’s top 1,000 trading companies and create a digital gateway connecting UAE exporters to international markets. These initiatives, combined with growing industrial output and investment inflows, have positioned the UAE as one of the most dynamic and diversified economies globally in 2025.
Global trade partnerships expand market connectivity
With strong macroeconomic indicators, rising trade volumes, and consistent policy implementation, the UAE enters 2026 on a trajectory of steady growth. The data reflect broad economic diversification and underline the nation’s role as a leading financial and trade hub linking global markets. The continued expansion of non-oil sectors, advanced infrastructure development, and increasing investor confidence highlight the country’s success in building a sustainable, innovation-driven economy that remains resilient amid global uncertainty. Supported by stable fiscal policies, digital transformation, and long-term investment initiatives, the UAE is positioned to maintain strong growth momentum and reinforce its standing as a key center for global business, finance, and advanced industry. – By Content Syndication Services.