UAE RANKS AMONG WORLD’S FASTEST-GROWING ECONOMIES IN 2025

UAE RANKS AMONG WORLD’S FASTEST-GROWING ECONOMIES IN 2025

blog1

The UAE has strengthened its standing as one of the world’s fastest-growing economies in 2025, underscoring a transformation that is increasingly driven by diversification, global capital flows and investor confidence rather than hydrocarbons alone.

At the centre of this momentum is the continued surge in non-oil activity. In the first half of 2025, the UAE’s non-oil foreign trade climbed by an impressive 24.5%, reflecting the country’s expanding role as a global trading hub connecting Asia, Europe and Africa. This performance reinforces the success of long-term economic reforms aimed at building resilience and reducing reliance on oil revenues.

Global institutions have taken notice. The International Monetary Fund upgraded the UAE’s 2025 growth forecast to 4.8%, placing it among the strongest performers worldwide. The upgrade reflects confidence in the country’s macroeconomic stability, pro-business regulatory environment and ability to attract international investment even amid global economic uncertainty.

Foreign direct investment remains a key pillar of growth. The UN Conference on Trade and Development ranked the UAE 10th globally for inbound FDI, highlighting its appeal as a safe, well-regulated and opportunity-rich destination for international capital. From advanced manufacturing and logistics to technology, renewable energy and financial services, investors continue to view the UAE as a gateway to regional and global markets.

Financial stability has further reinforced this trajectory. Major international credit rating agencies reaffirmed the UAE’s sovereign ratings, signalling confidence in fiscal discipline and long-term economic management. At the same time, the Central Bank of the UAE reported banking assets exceeding AED 5.19 trillion, a milestone that reflects both system strength and growing economic activity.

Looking ahead, the launch of the National Financial Inclusion Strategy 2026–2030 adds another layer to the growth story. By expanding access to financial services and strengthening participation across society, the initiative aims to ensure that economic progress translates into broad-based opportunity.

Together, these indicators paint a clear picture: the UAE is not only growing fast, but growing strategically; positioning itself as a stable, diversified and future-ready economy in an increasingly competitive global landscape.

Connect UAQ

Subscribe to our e-Newsletter