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UAE economy grows 3.9% in Q1 2025, non-oil sector hits record share

The UAE’s economy expanded 3.9 percent in real terms in the first quarter of 2025, reaching Dh455 billion in gross domestic product (GDP), according to preliminary data from the Federal Competitiveness and Statistics Centre.

Non-oil GDP grew 5.3 percent year-on-year to Dh352 billion, raising its share of total output to a record 77.3 percent. Oil-related activities accounted for the remaining 22.7 percent.

Manufacturing was the fastest-growing sector, rising 7.7 percent compared with the same period last year. Finance and insurance, along with construction, each posted 7 percent growth, while real estate rose 6.6 percent and trade advanced 3 percent.

Trade contributed the most to non-oil GDP at 15.6 percent, followed by finance and insurance at 14.6 percent, manufacturing at 13.4 percent, construction at 12 percent, and real estate at 7.4 percent.

Economy and Tourism Minister Abdulla bin Touq Al Marri said the results reflect the strength and flexibility of the UAE economy, underscoring investor confidence and the success of the government’s development model.

He noted that non-oil activities’ record contribution aligns with the “We the UAE 2031” vision, which targets GDP of Dh3 trillion within the next decade.

Federal Competitiveness and Statistics Centre Managing Director Hanan Mansour Ahli said the performance reaffirms the UAE’s strategy of building a diversified, innovation-driven economy supported by sustainable foundations.

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