If you’ve been following the UAE’s economic journey, you know the story isn't just about oil anymore. For years, the country has been building a new engine of growth, diversifying its economy with the kind of foresight that turns long-term vision into short-term reality. And now, we have the numbers to prove that this grand project is not just working—it’s hitting a new, historic stride.
According to preliminary figures from the Federal Competitiveness and Statistics Centre, the UAE’s economy grew by a solid 3.9 percent in real terms during the first quarter of 2025, with gross domestic product (GDP) reaching Dhs455 billion. But the real headline? For the first time ever, the contribution from non-oil sectors has climbed to a record-breaking 77.3 percent of total national output, leaving oil-related activities at just 22.7 percent.
It’s an economic mic drop, a resounding testament to the country’s resilience and strategic momentum.
Beyond the Barrel: What the Numbers Tell Us
This isn't just about a single quarter's performance; it's a powerful signal of a sustained transformation. The non-oil GDP grew at an even more impressive rate of 5.3 percent year-on-year to a staggering Dhs352 billion. What does that tell us? That the UAE is no longer simply surviving—it's thriving, powered by innovation, and confidently charting a course toward a post-oil future.
Think about it like this: the country isn’t just getting by on its legacy strengths. It’s building new, powerful pillars that can withstand global market volatility. And if you dig into the data, you can see exactly where the momentum is coming from.
The Engines of Growth: Top-Performing Sectors
The non-oil growth wasn’t a broad, thin blanket; it was a targeted, powerful surge in key sectors. The following industries led the charge, demonstrating the success of the UAE's targeted investment and policy initiatives:
- Manufacturing: This sector was the fastest-growing, expanding by an impressive 7.7 percent compared to the same period in 2024.
- Finance and Insurance: The financial services industry saw a robust 7 percent growth, a clear indicator of a healthy, stable, and trusted financial hub.
- Construction: With major projects continuing to reshape the country, construction also recorded a strong 7 percent growth, a testament to the ongoing physical development and long-term vision.
- Real Estate: The real estate market, a cornerstone of the UAE economy, rose by a healthy 6.6 percent.
- Trade: Despite global headwinds, the trade sector advanced by a respectable 3 percent, reaffirming the country's position as a global logistics and commerce hub.
In terms of overall contribution to the non-oil GDP, trade led the pack with 15.6 percent, followed closely by finance and insurance (14.6 percent), manufacturing (13.4 percent), and construction (12 percent).
The Vision Becomes Reality
This landmark performance isn't a fluke. It's the direct result of deliberate policy and strategic planning. As Abdulla bin Touq Al Marri, Minister of Economy and Tourism, highlighted, these figures "reflect the strength and flexibility of the national economy and its ability to sustain exceptional growth."
It’s also about more than just numbers. It’s a reflection of global investor confidence in the UAE’s business environment and its forward-thinking regulatory frameworks. The journey toward building a knowledge- and innovation-based economy is well underway, with a clear target set by the “We the UAE 2031” vision: to reach a GDP of Dhs3 trillion within the next decade.
The latest figures suggest the UAE is not just on track to meet that goal—it’s accelerating toward it. This is a story of diversification, resilience, and a bold economic future.
So, as an investor, a resident, or simply an observer of the global economy, the takeaway is clear: the UAE is not just a participant; it's a leader in the new world economy. And the most exciting part? This is just the beginning.