UAE’s Non-Oil Trade Surpasses AED 2 Trillion, Fueling Robust Growth Projections
The United Arab Emirates’ ambitious economic diversification strategy is yielding significant results, as evidenced by the nation’s non-oil trade exceeding a remarkable AED 2.0 trillion in the first nine months of 2024. This impressive figure represents a substantial 14.9% year-on-year increase, underscoring the growing strength and dynamism of the UAE’s non-hydrocarbon sectors. The robust trade performance is now projected to be a key driver in the nation’s economic expansion, supporting a real GDP growth of 4.7% in 2025, with an anticipated acceleration to 5.7% in 2026. Furthermore, the non-hydrocarbon sector itself is forecast to experience a healthy growth of 5.1% in 2025.
These figures, recently released by government trade authorities, highlight the tangible success of the UAE’s long-term vision to reduce its reliance on oil revenues and cultivate a diverse and sustainable economic base. The significant surge in non-oil trade demonstrates the increasing competitiveness of UAE-based businesses across a range of sectors, including manufacturing, technology, logistics, and tourism.
The diversification efforts, spearheaded by strategic government initiatives and investments in infrastructure and innovation, are clearly paying dividends. The growth in non-oil trade reflects both increased exports of locally manufactured goods and a thriving re-export market, leveraging the UAE’s strategic geographic location and world-class logistics infrastructure.
“The surpassing of the AED 2 trillion mark in non-oil trade is a significant milestone for the UAE,” commented Omar Hassan, a leading trade analyst at Gulf Intelligence. “It clearly illustrates the effectiveness of the government’s diversification policies and the growing sophistication of the UAE’s non-energy sectors. This momentum is crucial for ensuring long-term sustainable growth.”
The positive trajectory in non-oil trade is directly linked to the optimistic GDP growth forecasts for the coming years. The projected 4.7% real GDP growth in 2025, followed by an even stronger 5.7% in 2026, signals a robust economic outlook driven by the burgeoning non-hydrocarbon economy. This diversification not only reduces vulnerability to fluctuations in global oil prices but also creates new avenues for job creation and economic prosperity.
The forecast of a 5.1% growth in the non-hydrocarbon sector for 2025 further emphasizes the internal strength of the UAE’s diversifying economy. This growth is expected to be fueled by continued investment in key non-oil industries, the attraction of foreign direct investment into these sectors, and the expansion of domestic demand.
The UAE’s commitment to fostering a business-friendly environment, coupled with its strategic investments in areas such as renewable energy, advanced technology, and tourism infrastructure, are all contributing to this positive economic outlook. The nation’s proactive approach to attracting talent and facilitating trade is solidifying its position as a leading global business hub.
As the global economic landscape continues to evolve, the UAE’s successful diversification strategy provides a model for other resource-rich nations seeking to build resilient and sustainable economies for the future. The continued growth in non-oil trade and the strong GDP projections underscore the UAE’s commitment to a prosperous and diversified future, less dependent on the cyclical nature of the oil market. Businesses operating in and with the UAE can look forward to a period of sustained economic expansion, driven by the increasing dynamism of its non-oil sectors.
