UAE's GDP grows 3.9% in Q1, non-oil sector hits record high

The UAE's real GDP grew by 3.9 per cent, reaching AED 455 billion during the first quarter of 2025, compared to the same period in 2024.

Non-oil GDP grew by 5.3 per cent, reaching AED 352 billion, with oil activities contributing 22.7 per cent during the first quarter of 2025.

His Excellency Abdullah bin Touq Al Marri, Minister of Economy and Tourism, said the preliminary estimates issued by the Federal Competitiveness and Statistics Centre regarding the country's economic performance during the first quarter of 2025 confirm the strength and resilience of the national economy and its ability to continue its exceptional growth path.

They also confirm the success of the comprehensive development model adopted by the country and reflect the confidence of investors and the international community in the UAE's business and investment environment, which has become a global model to be emulated in adopting advanced economic policies and developing a legislative infrastructure that stimulates growth.

He added, the contribution of non-oil economic activities to the real GDP has reached a new record high, reaching 77.3 per cent for the first time in the country's history. This reflects the momentum of the UAE's economic diversification and confirms the effectiveness of national policies and strategies aimed at building an economic model based on knowledge and innovation, in line with the objectives of the We the Emirates 2031 vision, which aims to raise the country's GDP to AED 3 trillion by the next decade.

Her Excellency Hanan Mansour Ahli, Director of the Federal Competitiveness and Statistics Center, affirmed the UAE's GDP growth during the first quarter of this year confirms the efficiency of the UAE's economic model and reflects the UAE government's success in implementing the leadership's directives to develop economic sectors on a sustainable basis and intensify economic diversification efforts to ensure the continued development and growth of the country's GDP.

She stated the non-oil GDP growth rate exceeding 5 per cent reflects the UAE's vision and direction to establish an advanced and diversified economic model, empowered by technology and innovation. This model provides a stimulating environment for businesses and creative minds to transform their visions into successful companies and projects that contribute to the UAE's evolving economic landscape.

Manufacturing activities topped all other economic activities in terms of growth rate during the first quarter of this year compared to the same period last year, witnessing a growth rate of 7.7 per cent, followed by the finance and insurance and construction sectors, which achieved growth of 7.0 percent. Real estate activities grew by 6.6 per cent, and trade activities by 3.0 per cent.

In terms of the economic activities that contributed most to non-oil GDP during the first quarter of 2025, the trade sector ranked first, contributing 15.6 per cent. The finance and insurance sector came in second, contributing 14.6 per cent, followed by manufacturing industries at 13.4 per cent, while the construction sector contributed 12.0 per cent, and real estate activities 7.4 per cent.