The World Bank has revised its growth forecast for the United Arab Emirates (UAE) in 2025, projecting a strong 4.6% expansion in gross domestic product (GDP), up from its previous estimate of 3.7%. This upgrade reflects the UAE’s resilient economic diversification, robust non-oil sector momentum, and consistent pro-business reforms.
In its latest Global Economic Prospects report released on 11 June 2025, the World Bank highlighted the UAE’s ability to navigate global economic headwinds through strategic investments in infrastructure, logistics, renewable energy, and financial services.
🔗 World Bank Global Economic Prospects – June 2025 (PDF)
Table of Contents
Non-Oil Sector Continues to Lead
The UAE’s non-oil economy, which now contributes the majority share of GDP, continues to be a major driver of growth. According to the report, sectors such as tourism, real estate, manufacturing, and technology are thriving due to strong public and private sector collaboration, forward-looking regulations, and sustained foreign direct investment.
This comes on the heels of another recent report that revealed 75% of the UAE’s GDP growth in 2024 stemmed from non-oil sectors — a trend that is expected to continue in the current year.
🔗 Read full article in The National News
Regional Standout in the GCC
The World Bank now expects the UAE to outpace several of its regional peers in 2025. While growth in the wider GCC is projected at 2.8%, the UAE is seen benefiting from structural reforms, global investor confidence, and its strategic role as a gateway to regional and global markets.
For UAE-based businesses and foreign investors, this improved outlook affirms the country’s position as one of the most stable and opportunity-rich environments in the region.
We continue to witness firsthand the increase in company incorporation, regional expansions, and international partnerships across sectors. The World Bank’s revised forecast offers further assurance for entrepreneurs and corporates looking to set up or grow their presence in the UAE.
If you’re exploring incorporation in the UAE or expanding across its free zones and clusters, the time is ripe to take advantage of this favorable economic climate.
Benoy Jacob is a journalist-turned-business consultant, currently serving as the Director of Client Relations at ATB Corporate in Abu Dhabi. With a keen eye for market trends and business strategy, he helps companies expand, build strategic partnerships, and optimize their operations in the UAE. Benoy brings a unique perspective on economic policies, trade ecosystems, and investment opportunities in Abu Dhabi and the wider MENA region.