UAE cements ranks among fastest-growing economies in 2025
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.