UAE (Washington News) - The UAE recorded strong economic growth in 2025, with non-oil trade reaching AED 1.7 trillion, GDP at AED 929 billion, bank assets at AED 5.19 trillion, and a record Dh92.4 billion federal budget approved.
As WAM on Business News reported, the United Arab Emirates has confirmed its place as one of the fastest-growing economies in 2025. Non-oil sectors are leading the growth. Non-oil foreign trade rose 24.5% in the first half of the year to AED 1.7 trillion, about 14 times the global trade growth rate.
Real GDP grew 4.2% year-on-year, reaching AED 929 billion. Non-oil activities contributed 77.5% of GDP, while oil accounted for 22.5%. Analysts say the country’s business-friendly rules, modern infrastructure, and flexible policies attract global trade, finance, tourism, and technology.
The UNCTAD World Investment Report 2025 ranked the UAE 10th globally for inbound foreign investment, with AED 167.6 billion in 2024. The IMF has raised the growth forecast for 2025 to 4.8%.
How is the UAE driving growth with Dh92.4bn budget and strong banking sector in 2025?
The UAE’s banking and financial sector remains strong. Central Bank of the UAE data shows gross bank assets reached AED 5.19 trillion by September 2025, and total credit rose to AED 2.47 trillion. The bank launched the UAE National Financial Inclusion Strategy 2026-2030 to expand access to financial services, support digital banking, and encourage business growth.
The United Arab Emirates has approved its federal budget for 2026 at Dh92.4 billion, the largest in its history. The Ministry of Industry and Advanced Technology signed 5 memoranda of understanding with national banks to provide more than Dh40 billion in financing for industrial projects.
The fourth edition of “Make it in the Emirates” ended with announced industrial projects worth over Dh11 billion and drew a record 122,000 visitors. The Cabinet also approved the National Investment Strategy 2031, which includes 12 programmes and 30 initiatives.
The strategy aims to raise annual foreign investment inflows from Dh112 billion in 2023 to Dh240 billion by 2031 and increase total foreign investment stock from Dh800 billion to Dh2.2 trillion. The Cabinet further approved the creation of a National Investment Fund with an initial capital of Dh36.7 billion.
The UAE also expanded efforts to support entrepreneurship and trade in 2025. The country launched the “UAE Future 50” initiative across 15 sectors, along with a national campaign aimed at training and incubating 10,000 entrepreneurs. Business activity continued to rise, with more than 220,000 new companies registered between January and the end of November.
Over 36,000 new trademarks were recorded during the same period, up 48.2% from a year earlier. By the end of September 2025, the UAE had 402,311 registered national and international trademarks. Nearly 20,000 trademarks were registered in the first half of 2025 alone, marking a 129% increase year-on-year. The launch of the “UAE Global Centre of Trade” programme, targeting the world’s top 1,000 trading companies.
These new announcements come after the UAE government introduced multiple economic reforms to increase growth and investment within the country. The Projects of the 50 initiative was created to help expedite the continued development of the UAE before its 50th anniversary in December 2021.
In addition, there were significant changes to the structure of the country’s legal and business systems, including revisions to company laws and increased foreign ownership allowances, that took place in 2022.