Trade, finance and insurance drove the UAE’s non-oil GDP to a record 77.3% in Q1 2025

FEATURES | September 22, 2025

DUBAI, UNITED ARAB EMIRATES

Trade, finance and insurance drove the UAE’s non-oil GDP to a record 77.3% in Q1 2025

UAE GDP grew 3.9% to AED455 billion in Q1 2025, with non-oil output accounting for 77.3%.
The UAE’s business environment remains favourable, largely due to substantial growth in trade, finance, manufacturing, and construction.
Doing business in the UAE offers strategic access to a diversified economy and one of the region’s most dynamic growth markets.

In the first quarter of 2025, trade remained the single largest contributor to the UAE’s non-oil GDP at 15.6%, emphasising its importance as a driver of economic activity. Finance and insurance followed at 14.6%, manufacturing at 13.4%, construction at 12.0%, and real estate at 7.4%. These gains fed directly into stronger national output and highlight the advantages of doing business in the UAE.

According to preliminary estimates from the Federal Competitiveness and Statistics Centre, the country’s real GDP rose 3.9% year-on-year in Q1 2025, reaching AED455 billion. Non-oil GDP grew at an even faster pace of 5.3% to AED352 billion, now accounting for 77.3% of total output, the highest share in the country’s history.

Which of the UAE’s non-oil sectors show the highest YoY gains?

Source: FCSC UAE | Federal Competitiveness and Statistics Centre

Within this overall development, several non-oil sectors posted standout YoY growth, led by manufacturing, finance, construction, and real estate. Specifically:

Manufacturing grew 7.7% YoY, fuelling demand from investors and SMEs across the country’s supply chains, logistics, and advanced production facilities.
Construction’s 7.0% rise, alongside real estate’s 6.6% improvement, suggests strong infrastructure activity and continued appetite for property investment. This benefits entrepreneurs expanding into the UAE, particularly in engineering, design, and property services.
With 7.0% YoY growth, finance and insurance reinforced the UAE’s status as a leading financial hub. This growth presents strong opportunities for fintech start-ups and global investment firms, especially in lucrative, dynamic emirates like Dubai.
Trade increased by 3.0%, providing a strong foundation for businesses entering the UAE market, including import-export, wholesale, and retail enterprises.

These sectors highlight how the UAE is accelerating its diversification strategy under the ‘We the UAE 2031’ vision, which targets a GDP of AED3 trillion by the next decade. The agenda places strong emphasis on boosting industrial capacity and advancing knowledge-based fields to ensure growth beyond oil. For investors and businesses looking to enter the UAE market, these trends highlight numerous opportunities.

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Trade, finance and insurance drove the UAE’s non-oil GDP to a record 77.3% in Q1 2025

Trade, finance and insurance drove the UAE’s non-oil GDP to a record 77.3% in Q1 2025

Which of the UAE’s non-oil sectors show the highest YoY gains?

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