The United Arab Emirates (UAE) applies innovative approaches to promote economic growth, GDP and diversification while retaining its position as one of the most developed and competitive economies in the world.
In its latest Quarterly Economic Review, the Central Bank of the United Arab Emirates (CBUAE) forecasted a 4.7 percent GDP increase in 2025, with further acceleration to 5.7 percent in 2026.
The non-hydrocarbon sector is anticipated to expand by 5.1 percent in 2025. Similarly, the hydrocarbon sector is set for a 3.6 percent growth in 2025, followed by an impressive 8.5 percent increase in 2026. This growth is supported by gradual increases in oil production as OPEC+ lifts production cuts, alongside ongoing and planned upstream and midstream oil and gas projects.
Current UAE GDP statistics
In its latest World Economic Outlook, the International Monetary Fund (IMF) projected a positive outlook for the UAE’s economic growth forecast for 2026, estimating an increase of 5 percent compared to 4 percent for 2025.
The fund also indicated that the UAE’s GDP experienced a growth of 3.8 percent in 2024.
UAE GDP reaches AED1.322 trillion in 9M 2024
The Federal Competitiveness and Statistics Center announced recently that the UAE’s real GDP posted a significant growth of 3.8 percent during the first nine months of 2024, reaching AED1.322 trillion. This growth was driven by a strong expansion in non-oil sectors, which grew by 4.5 percent to AED987 billion, reflecting the success of the country’s economic diversification strategy.
The contribution of non-oil activities to real GDP reached 74.6 percent, highlighting the increasing role of these sectors in supporting economic growth, while oil-related activities contributed 25.4 percent.
The UAE’s nominal GDP reached AED 1.48 trillion during the same period, recording an annual growth of 6 percent. The value of non-oil GDP, at current prices, amounted to AED1.136 trillion, registering a growth rate of 6.6 percent. Meanwhile, non-oil activities contributed 76.5 percent to the UAE’s nominal GDD, and the contribution of oil activities reached 23.5 percent.
Here are some key points:
Transport and storage activities
The most prominent economic activities with the highest growth in GDP during the first nine months of 2024 were transport and storage activities, which witnessed a growth of 7.9 percent. The center attributed the sector growth to the strong performance of passenger traffic and flights at the UAE’s airports, which recorded more than 103 million passengers, with a growth rate of about 20 percent.
Construction and building activities
As for the construction and building sector, it achieved a growth of 7.4 percent in 2024 due to a significant increase in investments in urban infrastructure projects.
Financial and insurance activities
Meanwhile, financial and insurance activities grew by 6.8 percent, government activities by 5.0 percent and restaurants and hotels by 4.9 percent.
Sectors driving non-oil growth
In terms of economic activities that contribute the most to the UAE’s non-oil GDP, the trade sector ranked first with a contribution of 16.5 percent, followed by the manufacturing sector with 15.1 percent, and the financial and insurance activities with 12.1 percent.
In addition, the construction sector contributed 11.7 percent, while real estate activities contributed 7.6 percent.
UAE’s international trade
The UAE recorded total foreign trade of $1.42 trillion in 2024, marking a remarkable 49 percent increase from $952.9 billion in 2021, according to the World Trade Organisation’s latest World Trade Outlook and Statistics report.
The UAE achieved a trade balance surplus of AED492.3 billion in 2024, slightly down from AED573.1 billion in 2023, reflecting stability amid global challenges. Exports totaled AED2.8619 trillion, against imports of AED2.3696 trillion, according to 2021–2024 statistics.
The UAE advanced from 17th to 11th globally in merchandise exports and from 18th to 14th in imports between 2021 and 2024, contributing 2.5 percent to global merchandise exports and 2.2 percent to imports. Exports reached AED2.2153 trillion, while imports totaled AED1.9802 trillion in 2024.
The UAE also ranked 21st globally in digital services exports, valued at AED191 billion in 2024, an increase from $37 billion in 2021 and $48 billion in 2023. Total digital services trade reached AED345 billion, representing one-third of services trade. Digital services imports, at AED154 billion, also ranked 21st, contributing 1.1 percent to global imports, reinforcing the UAE’s role as a technology hub.
The UAE’s achievements reflect its strategy of innovation and diversification, positioning it to navigate a forecasted 0.2 percent decline in global merchandise trade in 2025. Contributing to a 1.6 percent regional GDP growth in 2024, with projections of 3.2 percent in 2025 and 3.5 percent in 2026, the UAE remains resilient. Its economic policies, strategic location and advanced infrastructure further solidify its role as a global trade hub.
Exchange rate
The nominal effective exchange rate (NEER) factors in the bilateral exchange rates of the national currency against a basket of UAE’s trading partners. It appreciated by 4.2 percent Y-o-Y in April 2024, compared to 2.4 percent in the previous month, due to the appreciation of the USD. In the same way, the real effective exchange rate (REER), which modifies the NEER for variations in inflation between the United Arab Emirates and its trade partners, saw a 3.1 percent increase from the previous year, or 1.4 percent month-over-month gain. The higher nominal currency rate and the UAE’s lower inflation rate in comparison to its trade partners are the main causes of this appreciation.
Share of sectors in UAE’s GDP
The UAE’s GDP reached $527.8 billion as of April 2024. In the United Arab Emirates, the service industry comprises several sectors. These include Information and Communication Technology, Travel and Tourism. Also, Education, Financial Services, Professional Services. And, Construction, Retail, and Wholesale. According to the latest data, the UAE’s services sector now accounts for 58.21 percent of GDP. This is a considerable rise from 46.71 percent over the previous 10 years.
About 64 percent of workers in the UAE were employed in service-related fields, making the industry a significant employer. Within the service industry, foreign commerce, air travel, finance and tourism are important subsectors. The UAE’s service sector greatly benefits from tourism. And, it also has a major influence on the GDP of the nation. The country is well known for its exceptional tourism attractions. And, it is drawing a large number of international visitors.
The service sector is a major employer in the UAE. It has approximately 64 percent of the workforce engaged in service-related occupations as of 2020. Key sub-sectors within the service industry include international trade, air transport, financial activities, and tourism. Tourism is a particularly significant contributor to the UAE’s service industry and has a substantial impact on the country’s GDP. The country is renowned for its world-class tourism offerings, attracting a large number of international visitors.
The UAE’s economy greatly benefits from the service sector. It spurs growth and offers a wide range of job possibilities. The industry’s growth, rising GDP share, and focus on sectors like tourism underscore its significance as an essential component of the UAE’s economic environment.
UAE GDP forecast and future outlook
The gross domestic product (GDP) in current prices in the United Arab Emirates was forecast to continuously increase between 2024 and 2029 by in total $157.4 billion (+29.82 percent). After the sixth consecutive increasing year, the GDP is estimated to reach $685.15 billion and therefore a new peak in 2029.
The UAE recorded total foreign trade of $1.42 trillion in 2024, marking a remarkable 49 percent increase from $952.9 billion in 2021. In 2023, the UAE’s total non-oil foreign goods trade reached an all-time high, exceeding a record AED2.4 trillion, supported by the materialization of bilateral comprehensive economic partnership agreements.
This strong foreign trade performance is expected to continue in 2025, sustaining the UAE’s real GDP growth, which is projected to reach 4.7 percent in 2025 and 5.7 percent in 2026.
The UAE’s real GDP growth also depends on the OPEC+ decision on the quotas, which is subject to the uncertain performance of the global economy. The non-hydrocarbon GDP remains very robust, with growth forecasted to expand by 5.1 percent in 2025.
Frequently Asked Questions (FAQs)
What is the current GDP of the UAE?
The UAE’s real GDP posted a significant growth of 3.8 percent during the first nine months of 2024, reaching AED1.322 trillion.
What sectors contribute most to the UAE’s GDP?
There are many sectors that include finance and insurance, tourism, hospitality, ports, construction, etc that contributes to the UAE’s GDP, in addition to the oil industry.
How does the oil sector impact UAE’s GDP?
Among the top 10 oil producing countries in the world is the UAE. Abu Dhabi is home to about 96 percent of the nation’s approximately 100 billion barrels of confirmed oil reserves, making it the sixth largest oil resource in the world. Around 3.2 million barrels of petroleum and liquids are produced daily on average in the United Arab Emirates. Therefore, oil sector is the major growth driver of UAE’s GDP.
What are the projections for UAE’s GDP growth?
The CBUAE forecasts a 4.7 percent GDP increase in 2025, with further acceleration to 5.7 percent in 2026.
What factors are affecting the UAE GDP?
The World Bank projects that the UAE’s economy would grow faster as oil output and prices rise, with the country’s robust non-oil sector performance playing a significant role in this development.
For more economy news, click here.
