The economy of the United Arab Emirates is projected to grow by more than 5% this year, underscoring the country’s continued resilience and the accelerating strength of its non-oil sectors. According to senior officials at the Ministry of Economy, non-oil activities are expected to expand by over 5.5%, accounting for approximately 78% of national GDP a clear signal of the UAE’s successful diversification strategy.
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Diversification Delivering Measurable Results
Over the past decade, the UAE has systematically reduced its reliance on hydrocarbons, investing heavily in trade, logistics, tourism, financial services, advanced manufacturing, and digital transformation. The latest projections reinforce the impact of these reforms, with non-oil sectors now forming the backbone of economic output.
Policy modernization has played a critical role. Continuous updates to commercial legislation, foreign ownership rules, and investment frameworks have strengthened the country’s competitiveness and ease of doing business. These structural reforms have enhanced investor confidence while fostering innovation and entrepreneurship across multiple industries.
Business Ecosystem Expanding Rapidly
The UAE’s pro-business environment continues to attract companies from around the world. The number of firms registered in the national economic registry has surpassed 1.45 million, reflecting strong domestic enterprise growth and sustained international interest.
This expansion highlights the country’s position as a global commercial hub connecting Asia, Europe, and Africa and serving as a strategic base for multinational corporations, SMEs, and family offices alike.
Strategic Focus on Innovation and Sustainability
Beyond headline growth figures, the UAE’s economic agenda emphasizes long-term sustainability. National strategies are aligned with:
- Digital transformation and AI adoption
- Advanced industries and manufacturing
- Green economy initiatives
- Entrepreneurship and SME development
- Knowledge-based economic expansion
These priorities aim to ensure diversified and resilient growth well beyond traditional energy markets.
Outlook for Investors and Corporates
With strong macroeconomic fundamentals, forward-looking policy reforms, and a rapidly expanding private sector, the UAE remains one of the fastest-growing economies among its global peers.
For corporates, investors, and international partners, the projected 5%+ growth signals more than cyclical expansion it reflects structural economic maturity and sustained competitiveness.
As global markets navigate uncertainty, the UAE continues to demonstrate strategic clarity, economic agility, and long-term vision reinforcing its position as a premier destination for business, capital, and innovation.
