UAE’s Economy Set to Grow 4.8% in 2025, Fastest in the Region

The UAE continues to reinforce its reputation as one of the world’s most resilient and attractive investment destinations, with economic growth remaining robust despite global headwinds.
Over the past 12 months, through trade turbulence, geopolitical uncertainty, and recession fears, the UAE has stood out not only as a safe haven but as a thriving economy. Abu Dhabi’s GDP is forecast to expand by around 6% in 2025, a standout pace in today’s global landscape, according to the International Monetary Fund (IMF).
The IMF attributes this strength to a combination of factors — including an oil output boost as OPEC+ production cuts ease and a booming real estate sector. Property transactions in Abu Dhabi surged more than 40% in the first half of 2025, reflecting strong demand, population growth, and investor confidence.
Meanwhile, the UAE’s diversification strategy continues to deliver results. Non-oil sectors such as tourism, finance, and real estate have emerged as major growth drivers, pushing overall UAE economic growth to a projected 4.8% this year — the fastest in the Gulf region.
“The UAE offers investors a rare blend of growth and stability. It’s a market where you can seek alpha while also enjoying shelter from global volatility,” said Josh Gilbert, Market Analyst at eToro. “Corporate earnings remain strong, IPO activity is booming, and local markets like the ADX and DFM are near record highs. This performance is underpinned by solid fundamentals and rising investor confidence.”
The UAE’s vibrant IPO market continues to attract both regional and global capital, with several listings in 2025 heavily oversubscribed. This surge in equity demand signals deep investor trust in the UAE’s growth trajectory and in the long-term strength of its companies — from real estate developers to banks and airlines — that stand to benefit directly from the economic upswing.
Supported by rising dividends, robust balance sheets, sustained government investment, and a young, growing population, the UAE remains a compelling destination for investors seeking strong returns with built-in resilience.
“Abu Dhabi’s 6% growth forecast isn’t just a number — it’s a reflection of a confident, diversified economy that continues to outperform expectations,” Gilbert added. “The UAE’s combination of high growth, diversification, and policy stability makes it a market global investors can’t afford to overlook.”



