UAE’s Economic Momentum Strengthens as Non-Oil Sector Leads Growth

The UAE is in top gear as it drives forward with ambitious plans for economic expansion in the coming years. With visionary leadership, diversification strategies beyond oil, booming sectors like real estate, technology, tourism, and renewable energy, the nation is positioning itself as a global hub for innovation, investment, and sustainability.

The Central Bank of the UAE (CBUAE) has expressed strong confidence in the country’s sustained economic momentum, particularly driven by the non-oil sector and the continued strength of its financial systems.

In its newly released 2024 Financial Stability Report, the CBUAE forecasts the UAE’s real GDP to grow by 4.4% in 2025, followed by a further acceleration to 5.4% in 2026, building on the 4% growth recorded in 2024. This upward trajectory underscores the success of the nation’s economic diversification strategy, coupled with the resilience of its banking and financial infrastructure.

A standout performer has been the non-bank financial institutions (NBFIs) sector—comprising insurance firms, finance companies, and exchange houses—which has demonstrated remarkable growth and stability. The insurance sector, in particular, recorded a 21.4% increase in gross written premiums, reaching AED 64.8 billion, while maintaining adequate solvency margins.

With such robust indicators, the UAE continues to position itself as a regional and global business powerhouse. Global investors and business leaders are encouraged to capitalize on this period of strong economic performance, which offers an ideal climate for expansion, innovation, and collaboration.