{"id":50441,"date":"2025-09-08T07:31:08","date_gmt":"2025-09-08T07:31:08","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/50441\/"},"modified":"2025-09-08T07:31:08","modified_gmt":"2025-09-08T07:31:08","slug":"uae-gdp-hits-dh455bn-in-first-quarter-as-non-oil-economy-breaks-another-record","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/50441\/","title":{"rendered":"UAE GDP hits Dh455bn in first quarter as non-oil economy breaks another record"},"content":{"rendered":"

The UAE\u2019s economy<\/a> maintained strong momentum in the first quarter of 2025, with real gross domestic product rising 3.9 per cent year-on-year to Dh455 billion, according to preliminary estimates released by the Federal Competitiveness and Statistics Centre (FCSC).<\/p>\n

Non-oil GDP<\/a> posted 5.3 per cent growth, reaching Dh352 billion, while oil-related activities accounted for 22.7 per cent of GDP. <\/p>\n

The UAE broke another record in non-oil economic activities that contributed <\/b>77.3 per cent of total real GDP as the country continues to diversify its economy. <\/p>\n

Non-oil contributions to GDP stood at 71.3 per cent in 2020 and have gradually increased over the past five years. <\/p>\n

The figures highlight the \u201cstrength and resilience of the national economy and its ability to continue its exceptional growth journey\u201d, Abdullah bin Touq, Minister of Economy and Tourism, said in a Wam report on Sunday.<\/p>\n

He noted that the performance reflects \u201cthe confidence of investors and the international community in the UAE\u2019s business and investment environment, which has become a global model for adopting advanced economic policies and developing a legislative infrastructure that stimulates growth\u201d.<\/p>\n

The minister added that the milestone non-oil contribution affirms the UAE\u2019s success in implementing its diversification strategy, aligned with the We the UAE 2031 vision, which aims to raise the country\u2019s GDP to Dh3 trillion by the next decade.<\/p>\n

Hanan Mansour Ahli, director of the FCSC, said that the results confirm the efficiency of the UAE\u2019s economic model and the government\u2019s success in developing sectors on a sustainable basis. She said the non-oil growth rate of more than 5 per cent reflects the UAE\u2019s push to build a knowledge \u2013 and innovation-driven economy that empowers businesses and entrepreneurs.<\/p>\n

Manufacturing emerged as the fastest-growing sector in the first quarter of 2025, expanding 7.7 per cent compared with the same period last year. The finance and insurance and construction sectors followed with 7 per cent growth each, while real estate activities grew by 6.6 per cent and trade by 3 per cent.<\/p>\n

In terms of contribution to non-oil GDP, trade led with 15.6 per cent, followed by finance and insurance (14.6 per cent), manufacturing (13.4 per cent), construction (12.0 per cent), and real estate activities (7.4 per cent).<\/p>\n

The latest figures reinforce the UAE\u2019s trajectory towards sustainable, diversified growth, supported by policies that emphasise innovation, investment, and global competitiveness.<\/p>\n

Trade agreements<\/p>\n

The UAE has concluded 28 Comprehensive Economic Partnership Agreements (Cepas) to date with 10 already in effect and easing trade. <\/p>\n

In the first quarter of 2025, the UAE\u2019s non-oil foreign trade surged sharply with partners under these agreements \u2013 including a 33 per cent increase with India, 41 per cent with Turkey, 29 per cent with the US, and 15 per cent with China. <\/p>\n

Trade with non-Cepa partners also grew, while exports rose from 18.4 per cent to 21.4 per cent of non-oil trade, driven by strong demand for UAE-made goods and services. <\/p>\n

In the first half of 2025, Abu Dhabi alone recorded a 34.7 per cent jump in non-oil foreign trade, reaching Dh195.4 billion \u2013 a testament to its strategic role as a logistics and trade hub, supported by its geographic advantage and modern infrastructure. <\/p>\n

The UAE and EU have commenced free trade negotiations<\/a>, aiming to enhance trade in goods, services, investments, and strategic sectors such as renewable energy, healthcare, and AI. <\/p>\n

In April, UAE President Sheikh Mohamed and EU Commission President Ursula von der Leyen agreed to initiate the free trade agreement negotiations, with the official talks beginning in May. <\/p>\n

The EU remains the UAE’s second-largest trading partner with 8.3 per cent of non-oil trade. <\/p>\n

Strategic investments <\/p>\n

The UAE\u2019s progress has also been underpinned by major strategic investments across high-growth industries. In first quarter of 2025, there was a strong wave of mergers and acquisitions, with 63 deals worth more than $20 billion according to Wam in May, marking the highest in the Mena region. <\/p>\n

Notably, Abu Dhabi\u2019s Group 42 acquired a significant stake in Khazna Data Centres<\/a>, underscoring the nation\u2019s commitment to expanding its digital economy and positioning itself as a regional technology hub.<\/p>\n

The aviation sector also provided a substantial boost, following Etihad Airways\u2019 landmark $14.5 billion agreement with Boeing and GE Aerospace for 28 wide-body aircraft powered by next-generation engines. This deal not only strengthens the UAE\u2019s aviation industry but also drives demand in related sectors such as logistics, maintenance, and tourism.<\/p>\n

Clean energy partnerships are also emerging as a cornerstone of the UAE\u2019s non-oil growth. In January, the UAE signed a \u20ac1 billion agreement with Italy and Albania to develop renewable projects, including solar and wind infrastructure. <\/p>\n

KILLING OF QASSEM SULEIMANIThe\u00a0five\u00a0pillars\u00a0of\u00a0IslamMohammed bin Zayed MajlisKilling of Qassem SuleimaniWhat the law says <\/p>\n

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.<\/p>\n

\u201cSome companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,\u201d she explains.<\/p>\n

\u201cAny leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer\u2019s discretion and require approval.\u201d<\/p>\n

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.<\/p>\n

More from Neighbourhood Watch:<\/p>\n

Founder:<\/strong> Ayman Badawi<\/p>\n

Date started: <\/strong>Test product September 2016, paid launch January 2017<\/p>\n

Based:<\/strong>\u00a0Dubai, UAE<\/p>\n

Sector<\/strong>: Software<\/p>\n

Size<\/strong>: Seven employees<\/p>\n

Funding<\/strong>: $170,000 in angel investment<\/p>\n

Funders:<\/strong> friends<\/p>\n

Killing of Qassem Suleimani<\/p>\n

Favourite book: \u2018The Art of Learning\u2019 by Josh Waitzkin<\/b><\/p>\n

Favourite film: Marvel movies<\/b><\/p>\n

Favourite parkour spot in Dubai: Residence towers in Jumeirah Beach Residence<\/b><\/p>\n

Civil%20War<\/p>\n

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