This marks the highest growth rate in the Gulf region

UAE is on track to record economic growth of 4.8 per cent in 2025, making it the fastest-growing economy in the Gulf region amid global uncertainty.

Abu Dhabi’s GDP is expected to expand around 6 per cent, underpinned by rising oil output as OPEC+ production cuts ease and a surge in the real estate sector.

Transaction data from the capital shows property activity climbing more than 40 per cent in the first half of the year, reflecting strong investor demand and population growth. Non-oil industries, including tourism, finance and real estate are also driving growth.

Josh Gilbert, Market Analyst at trading platform eToro said: “The UAE offers investors a rare combination of growth and stability. Corporate earnings remain resilient, IPO activity is robust, and equity markets like the ADX and DFM are near record levels. These fundamentals, coupled with investor confidence, make the UAE an attractive market even in volatile conditions.”

The country’s IPO market has continued to attract significant regional and international capital, with several listings in 2025 heavily oversubscribed, indicating strong investor trust in the UAE’s corporate sector. Analysts note that robust government investment, rising dividends and a young, growing population further bolster the economy’s resilience.

“Abu Dhabi’s projected growth is a reflection of a diversified and confident economy,” Gilbert added. “The UAE’s combination of strong growth, policy stability, and market depth positions it as a key investment destination in the region.”

Source: https://www.arabianbusiness.com/politics-economics/uae-economy-poised-for-4-8-growth-in-2025