UAE Real GDP Growth at 3.9% in Q1 2025, State News Agency Reports

DUBAI: The UAE recorded real GDP growth of 3.9 percent in the first quarter of 2025, the state news agency reported on Sunday. 

Abdullah bin Touq Al Marri, minister of economy and tourism, said the preliminary estimates issued by the Federal Competitiveness and Statistics Center regarding the country’s economic performance during the first quarter confirm the strength and resilience of the national economy and its ability to continue its exceptional growth path. 

They also confirm the success of the comprehensive development model adopted by the country and reflect the confidence of investors and the international community in the UAE’s business and investment environment, which has become a global model to be emulated in adopting advanced economic policies and developing a legislative infrastructure that stimulates growth, WAM reported.

In terms of the economic activities that contributed most to non-oil GDP during the first quarter of 2025, the trade sector ranked first, with 15.6 percent. The finance and insurance sector came in second, contributing 14.6 percent, followed by manufacturing industries at 13.4 percent, the construction sector contributed 12.0 percent, and real estate activities 7.4 percent.

This comes as the latest Purchasing Managers’ Index data from S&P Global showed the UAE rising to 53.3 in August from 52.9 in July, rebounding from a 49-month low and remaining comfortably above the neutral 50 mark. The reading signaled an improvement in non-oil private sector conditions.

Sales growth in the UAE’s non-oil private sector weakened for the fourth consecutive month in August, pushing new orders to their lowest level since mid-2021.

The report showed the UAE’s PMI was supported by stronger output growth, which accelerated to its fastest pace in six months and slightly exceeded the survey’s long-term average. Panelists frequently cited increased sales, project activity, and expansion in local markets as drivers of momentum.