The United Arab Emirates (UAE) has reaffirmed its status as one of the world’s fastest-growing economies in 2025, underpinned by a robust non-oil sector, strategic foreign investments, and a business-friendly regulatory environment. With the announcement of the largest federal budget in its history for 2026 and initiatives to promote entrepreneurship and investment, the UAE continues to strengthen its role as a global trade and economic hub.
Exceptional Growth in Non-Oil Trade
In the first half of 2025, the UAE’s non-oil foreign trade increased by 24.5%, reaching AED 1.7 trillion, representing approximately 14 times the global trade growth rate. This growth underscores the country’s strategic positioning as a regional and international trade centre.
Government policies focused on diversifying the economy, fostering investment, and maintaining a flexible regulatory framework have been pivotal in supporting this sustained trade expansion.
Strong Foreign Direct Investment Performance
According to the UNCTAD World Investment Report 2025, the UAE ranked 10th globally for inbound foreign direct investment (FDI) in 2024, attracting AED 167.6 billion. International credit rating agencies, including Fitch, Moody’s, and S&P Global, have reaffirmed the UAE’s sovereign credit ratings, reflecting confidence in the country’s fiscal prudence and economic stability.
Robust GDP Growth and Financial Sector Stability
• Real GDP grew by 4.2% year-on-year, reaching AED 929 billion in the first half of 2025.
• Non-oil GDP expanded by 5.7% to AED 720 billion, accounting for 77.5% of total GDP.
• The Central Bank of the UAE (CBUAE) reported gross banking assets of AED 5,199.9 billion and gross credit of AED 2,478.8 billion as of September 2025.
The UAE also launched the National Financial Inclusion Strategy 2026–2030 to broaden access to financial services, promote digital adoption, and enhance the overall stability of the financial sector.
Historic Federal Budget for 2026
The UAE approved a federal budget of AED 92.4 billion for 2026, the largest in the nation’s history. This budget reflects a strategic focus on infrastructure development, industrial growth, and economic diversification, reaffirming the UAE’s commitment to sustainable growth and fiscal stability.
Advancing Industry and Investment
The Ministry of Industry and Advanced Technology secured over AED 40 billion in industrial financing through memoranda with national banks. The “Make it in the Emirates” platform facilitated industrial projects exceeding AED 11 billion, attracting over 122,000 visitors. The National Investment Strategy 2031 sets out to increase annual FDI inflows from AED 112 billion to AED 240 billion and expand total foreign investment stock from AED 800 billion to AED 2.2 trillion. Concurrently, the National Investment Fund was launched with AED 36.7 billion to support strategic investments, alongside policies promoting Islamic finance and the halal industry to strengthen the UAE’s global economic standing.
Promoting Entrepreneurship and Innovation
The UAE introduced the “UAE Future 50” initiative, covering 15 key sectors, alongside a national campaign to train and incubate 10,000 entrepreneurs.
Between January and November 2025:
• Over 220,000 new companies were registered.
• More than 36,000 new trademarks were issued, representing a 48.2% year-on-year increase.
• Total registered trademarks reached 402,311, with nearly 20,000 registered in H1 2025, marking a 129% increase compared to the previous year.
Strengthening Global Trade Networks
The UAE further reinforced its position as a global trade gateway through expanded Comprehensive Economic Partnership Agreements (CEPAs) and the launch of the “UAE Global Centre of Trade” program, targeting the world’s top 1,000 trading companies. A digital trade gateway now connects thousands of UAE exporters with international markets, enhancing trade efficiency and global competitiveness.
Conclusion
Through record-breaking non-oil trade growth, a historic federal budget, and strategic initiatives supporting investment and entrepreneurship, the UAE in 2025 has consolidated its position as a dynamic, diversified economy and a leading hub for trade, finance, and innovation on the global stage.
