UAE Non-Oil Trade Surges 24% to Dh1.7T in 2025
The United Arab Emirates (UAE) has achieved a remarkable milestone in its economic diversification journey, with non-oil foreign trade soaring to an unprecedented Dh1.7 trillion in the first half of 2025. This represents a staggering 24% growth compared to the same period in 2024, far surpassing the global trade growth rate of just 1.75%. Announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, via his official X account, these figures highlight the UAE’s robust global trade partnerships and its position as a leading economic powerhouse in the Middle East.
A Record-Breaking Performance in Non-Oil Trade
The UAE’s non-oil foreign trade reached Dh1.7 trillion in the first six months of 2025, doubling the figures from just five years ago. This exceptional 24% growth underscores the nation’s ability to outpace global trade trends, which grew at a modest 1.75% during the same period. Sheikh Mohammed emphasized the strength of the UAE’s economic partnerships, noting significant trade increases with key partners: 120% with Switzerland, 41% with Turkey, 33% with India, 29% with the US, and 15% with China. These numbers reflect the UAE’s strategic focus on fostering global trade and diversifying its economy away from oil dependency.
Under the leadership of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, the UAE has solidified its position as a global trade hub, bridging the East and West. Sheikh Mohammed’s announcement highlighted the nation’s commitment to economic diversification, stating, “These figures are a promise that the future will be even more beautiful and greater.” This milestone aligns with the UAE’s ambitious We the UAE 2031 vision, which aims to double the GDP to Dh3 trillion and boost non-oil exports to Dh800 billion by 2031.
Key Drivers of UAE’s Non-Oil Trade Growth
Several factors have contributed to the UAE’s impressive non-oil trade growth in 2025. The nation’s strategic location, advanced infrastructure, and business-friendly policies have made it a magnet for international trade. Here are the key drivers behind this achievement:
- Strong Global Trade Partnerships
The UAE has cultivated robust relationships with major trading partners, resulting in significant trade growth. The 120% surge with Switzerland, driven by high-value sectors like gold and jewelry, highlights the UAE’s appeal as a trade hub. Similarly, trade with Turkey (up 41%) and India (up 33%) reflects the success of Comprehensive Economic Partnership Agreements (CEPAs), which have reduced trade barriers and boosted bilateral commerce. The UAE’s trade with the US and China also saw substantial increases, reinforcing its role as a connector of global markets.
- Economic Diversification Efforts
The UAE’s focus on non-oil sectors has been a cornerstone of its economic strategy. Sectors such as trade activities, manufacturing, financial services, tourism, and real estate have driven growth, with non-oil sectors contributing 75% to the UAE’s GDP in the first half of 2024. This diversification has reduced reliance on oil and strengthened the economy’s resilience against global fluctuations.
- Technological Innovation
The adoption of technologies like artificial intelligence (AI), blockchain, and digitalization has transformed trade practices in the UAE. From streamlining logistics to enhancing transparency in transactions, these technologies have boosted efficiency and competitiveness in non-oil trade. The UAE’s investment in Generative AI and other innovations positions it at the forefront of the global digital economy.
- Tourism and Hospitality Boom
The tourism sector has played a pivotal role in trade growth, with hotel revenues reaching Dh24.6 billion in H1 2024, a 7% increase year-on-year. The UAE welcomed 15.3 million hotel guests, up 10.5%, cementing its status as a global tourism hub. This surge has boosted trade in services, particularly in hospitality and retail.
- Strategic Trade Agreements
The UAE’s CEPAs with countries like India, Turkey, and others have been instrumental in driving trade growth. These agreements have facilitated a 24.5% increase in trade with CEPA partners, contributing over Dh390.5 billion in 2023. The UAE is also set to launch trade talks with the European Union in 2025, further expanding its global reach.
Major Trading Partners and Growth Highlights
The UAE’s non-oil trade growth in 2025 was marked by significant increases with key partners:
- Switzerland: Trade surged by 120%, driven by high-value exports like gold, jewelry, and precious metals.
- Turkey: A 41% increase, bolstered by the CEPA signed in 2023, which enhanced trade in goods and services.
- India: Up 33%, reflecting strong ties in manufacturing, technology, and consumer goods.
- United States: Trade grew by 29%, with significant contributions from technology and professional services.
- China: A 15% increase, maintaining its position as the UAE’s top trading partner, particularly in electronics and machinery.
These partnerships accounted for a substantial portion of the UAE’s non-oil trade, with the top 10 trading partners seeing a combined growth of 28.7% in non-oil exports. Other notable markets include Saudi Arabia, Iraq, and Japan, which have also seen robust trade growth.
Sectoral Contributions to Non-Oil Trade
The UAE’s non-oil trade growth is driven by diverse sectors, each contributing to the Dh1.7 trillion milestone:
- Trade Activities: Representing 16.5% of non-oil GDP, trade remains the largest contributor, fueled by re-exports and imports.
- Manufacturing: Accounting for 15% of non-oil GDP, this sector saw strong growth in exports like aluminum, copper, and perfumes.
- Financial Services: Contributing 12.5%, financial and insurance activities grew by 7.6%, driven by innovation in fintech and Islamic finance.
- Construction: With a 7.3% growth rate, construction activities supported infrastructure development and real estate projects.
- Real Estate: Contributing 7.6%, the real estate sector benefited from increased demand and foreign investment.
Non-oil exports, including gold, jewelry, cigarettes, oils, and aluminum, grew by 37%, while re-exports of telephones and diamonds saw significant increases. Imports reached Dh800 billion, up 11% year-on-year, reflecting strong domestic demand.
The Role of Economic Diversification
The UAE’s non-oil trade success is a testament to its economic diversification strategy. By reducing reliance on oil, the UAE has built a resilient economy capable of withstanding global challenges. In 2024, non-oil sectors contributed 75% to the GDP, with projections for continued growth at 4.9% in 2024 and 5% in 2025. This resilience is supported by government initiatives, private sector investment, and a focus on innovation and sustainability.
The We the UAE 2031 vision aims to elevate non-oil exports to Dh800 billion and total foreign trade to Dh4 trillion by 2031. The 24% growth in H1 2025 brings the UAE closer to these goals, showcasing its ability to capitalize on global trends like digitalization and sustainability.
Future Outlook for UAE Trade
The UAE’s non-oil trade growth in 2025 sets a strong foundation for future success. With plans to expand trade talks with the European Union and further strengthen CEPAs, the UAE is poised to maintain its position as a global trade hub. The adoption of AI, blockchain, and other technologies will continue to drive efficiency and innovation in trade practices.
The tourism sector is expected to remain a key driver, with the UAE targeting 15 million visitors annually. Investments in infrastructure, logistics, and digital economy initiatives will further enhance the UAE’s competitiveness. As global inflation stabilizes and monetary policies ease, the UAE’s economic outlook remains positive, with projections for 5.5% GDP growth in 2026.
