The United Arab Emirates (UAE) reported a significant economic expansion of 3.8 percent during the first nine months of 2023. This growth was largely driven by a vibrant non-oil sector, which now constitutes nearly 75 percent of the nation’s GDP, as announced by officials this week.

This robust growth highlights the UAE’s ongoing efforts to diversify its economy, with aspirations of achieving a GDP surge of 5 to 6 percent by 2025. The country is positioning itself as a global hub for innovation, trade, and investment. The real GDP for the nine-month period ending September 2023 reached Dh1.32 trillion ($359 billion), while the non-oil economy saw an annual increase of 4.5 percent to Dh987 billion ($269 billion). The oil sector accounted for 25 percent of the GDP, underscoring the UAE’s strategic success in reducing its dependence on hydrocarbons.

Abdullah bin Touq Al Marri, the UAE Minister of Economy, credited the sustained growth to the country’s proactive economic policies. These include streamlined business regulations, global trade partnerships, and targeted investments in key areas such as technology, renewable energy, logistics, and financial services. Al Marri noted that the resilience of the national economy reaffirms the effectiveness of strategies focused on flexibility, competitiveness, and openness to global markets.

The Minister also pointed out that from 2021 to 2024, the UAE’s GDP growth averaged 4.8 percent, with non-oil GDP growth exceeding this at 6.2 percent annually. This progress aligns with the “We the UAE 2031” vision, which aims to elevate the nation’s GDP to Dh3 trillion ($817 billion) by 2031 and establish it as a leader in emerging sectors including the circular economy, space technology, and artificial intelligence.

Al Marri added that the UAE’s ability to maintain growth amid global uncertainties showcases its readiness to adopt new economic models and forge partnerships. He highlighted recent bilateral trade agreements with India, Turkey, and Indonesia, along with foreign direct investment inflows that exceeded $23 billion in 2023.

According to KPMG, the UAE is set to remain the fastest-growing economy in the Gulf Cooperation Council (GCC) through 2025. The consultancy predicts GDP growth will rise from 3.8 percent in 2023 to 6.7 percent in 2025, outpacing its regional neighbors.

The UAE’s economic advancements are reflected in its rising positions on global indices. It ranked 10th in the 2023 Soft Power Index, showcasing its cultural, diplomatic, and business influence. Abu Dhabi and Dubai topped Numbeo’s 2024 Safety Index, placing first and fourth globally, respectively. The UAE also ranked third worldwide for safety according to the Gitnux Marketdata Report.

In the 2024 World Competitiveness Report, the UAE climbed three spots to seventh globally, surpassing countries like Canada, Japan, and Finland. The nation ranked first in employment rates, Internet penetration, and industrial dispute resolution, while achieving second place in tourism revenue and bureaucratic efficiency.

For the third consecutive year, the UAE anticipates the highest influx of affluent migrants, with an estimated 6,700 millionaires expected to relocate by the end of 2024, as reported by Henley & Partners. This trend surpasses the numbers for the United States, Singapore, and Canada, with British nationals forming the largest group. Analysts attribute this influx to the UAE’s tax incentives, luxury infrastructure, and stable governance.

Dominic Volek, Henley’s group head of private clients, stated that high-net-worth individuals are attracted to the UAE due to its business-friendly policies, safety, and connectivity. Their investments are significantly boosting sectors such as real estate, fintech, and sustainable energy.

Looking ahead, the UAE plans to leverage its legacy from COP28 to enhance green investments. Notable projects include the Abu Dhabi National Oil Company’s (Adnoc) $23 billion decarbonization plan and Dubai’s ambitious $8.2 trillion Dubai Economic Agenda (D33), which focus on renewable energy and smart technologies.