The UAE economy is set to expand at a faster pace in 2025, with the Central Bank raising its GDP growth forecast to 4.9%. This marks an increase from the previous estimate of 4.4% and reflects the combined strength of higher oil production and a resilient non-oil sector.
Oil output has been a key driver behind this upward revision. Global energy demand remains strong, and the UAE has strategically increased production to meet market needs. Analysts say this boost in oil activity will support government revenue and contribute to overall economic stability.
Beyond the energy sector, the UAE’s non-oil economy continues to perform strongly. Industries such as tourism, finance, construction, and technology have shown steady growth, signaling a diversified economic structure. Officials note that non-oil sectors now account for a significant portion of GDP, which helps buffer the country against fluctuations in global oil prices.
Consumer spending and investment are also contributing to economic expansion. Retail sales, real estate activity, and foreign investment have all shown positive trends in recent months. The government’s focus on business-friendly policies, innovation, and infrastructure development has attracted both local and international investors.
Economic experts point out that the UAE’s proactive fiscal and monetary measures have played a role in supporting growth. Stable interest rates, targeted spending on strategic projects, and initiatives to enhance private sector participation have strengthened confidence in the economy.
The tourism sector, in particular, has benefited from global travel recovery. Visitor numbers are rising, and hospitality businesses are experiencing higher demand. Major events and cultural attractions have drawn international attention, boosting service exports and creating employment opportunities.
In addition, the UAE’s efforts to position itself as a regional hub for technology and finance are paying off. Investments in digital infrastructure, financial services, and smart city projects have attracted international companies and startups. These sectors are expected to contribute further to non-oil GDP growth.
Experts also highlight the importance of sustainable development initiatives. Green energy projects and climate-focused investments are not only supporting environmental goals but also opening new economic avenues. Renewable energy ventures are creating jobs and attracting foreign partnerships, adding another layer of resilience to the UAE’s growth outlook.
The revised growth forecast underscores confidence in the country’s long-term economic strategy. Policymakers emphasize the importance of balancing oil sector performance with diversified economic activities to ensure sustainable growth.
Looking ahead, analysts expect the UAE to maintain a healthy growth trajectory. Continued global demand for energy, combined with robust domestic consumption and investment, is likely to keep GDP growth strong. The government’s strategic initiatives in infrastructure, technology, and sustainability will further reinforce the economy’s resilience.
With the Central Bank’s updated projection, the UAE demonstrates its ability to adapt to global economic shifts while fostering a diverse and dynamic economic environment. This positive outlook signals opportunities for businesses, investors, and the workforce alike.
