Key Takeaways
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Abu Dhabi’s economy expanded 3.4 % year-over-year in Q1 2025
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Non‑oil sector surged 6.1 %, now accounting for 56.2 % of GDP
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Manufacturing, construction, finance, trade, and retail are key drivers
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UAE-wide GDP forecast upward: 4.4 %–5.1 % in 2025
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Implications for investors: diversified growth supports resilience
Saudi‑Style Economic Diversification Shows Results
For the first quarter ending March 31, 2025, the Statistics Centre – Abu Dhabi (SCAD) reported GDP at AED 291 billion, marking a 3.4 % increase compared to Q1 2024. The non‑oil economy drove this growth, expanding 6.1 % YoY, and now represents 56.2 % of total GDP.
Sectoral Contributions
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Manufacturing: Leading non-oil contributor (~9.8 % of GDP), up 5 %
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Trade (wholesale & retail): Grew 3.6 %, contributing 5.5 % to GDP
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Construction, finance, logistics, and real estate also posted strong gains
Forecasts Point to Stronger UAE Growth
Projections for the broader UAE economy align with Abu Dhabi’s momentum:
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Central Bank of the UAE forecasts 4.4 % real GDP growth in 2025, rising to 5.4 % in 2026
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World Bank upgraded UAE growth outlook to 4.6 % in 2025, citing robust non‑oil activity
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Institute of Chartered Accountants in England & Wales (ICAEW) sees growth of 5.1 % in 2025, with tourism and finance as core drivers
Additionally, UAE’s Minister of Economy projected national GDP growth up to 6 % in 2025, fueled by tech, renewables, trade, and infrastructure investments.
What This Means for Investors & Markets
Diversification Resilience
The strong non‑oil performance—led by manufacturing, trade, construction, and finance—highlights reduced dependency on hydrocarbons and better exposure to global tourism and trade cycles.
Market & Investment Implications
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Real estate and construction gains support positive returns on development projects
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Growing manufacturing and finance sectors drive demand for industrial and commercial assets
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Expansion in wholesale, retail, and tourism bolsters consumer confidence and operational activity
Outlook for Abu Dhabi & UAE
The emirate’s continued diversification enhances macroeconomic stability, positioning it well for investment and long-term growth—benefiting both local and international investors.
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