Economy Minister Abdulla bin Touq Al Marri attributed the projected expansion to the country’s strategic vision, ongoing legislative reforms and a competitive business environment that has drawn global investment. More than 40 laws and regulations have been updated in recent years to simplify procedures and support enterprise growth across key sectors. The minister noted that these changes have helped position the UAE as a preferred destination for international companies and family businesses seeking to establish regional headquarters.
Registered companies in the country have climbed from around 650,000 five years ago to 1.45 million at present, according to Al Marri. The minister forecast that this number will reach 2 million by 2031 as diversification efforts continue to bear fruit. Such growth reflects the impact of policy measures that have eased market entry while strengthening the overall investment climate.
Ministry of Economy figures show that non-oil GDP expanded 5.3 percent in the first quarter of 2025 to AED 352 billion, lifting its share of total output to a record 77.3 percent in that period. This performance was led by wholesale and retail trade, manufacturing, financial services and tourism, building on the momentum that is expected to push the non-oil contribution to 78 percent next year. The data underscores the sustained rebalancing of the economy away from hydrocarbons.
The World Bank has aligned with the minister’s outlook by forecasting 5 percent GDP growth for the UAE in 2026, followed by 5.1 percent in 2027 across steady non-oil gains and rising oil production under adjusted OPEC+ quotas. Central Bank of the UAE assessments place real GDP growth at 5.6 percent for 2025, supported by 6.1 percent expansion in non-hydrocarbon sectors, with similar momentum anticipated through 2026. These projections come as inflation stayed contained at 1.3 percent last year amid easing pressures on food and transport costs.
Al Marri pointed to the revised Commercial Companies Law as a key factor in attracting family businesses and multinationals that have increasingly chosen the UAE for its regulatory stability and geographic advantages. The updates have provided greater operational flexibility and legal protections, contributing to the rise in company registrations and foreign direct investment inflows. Such policies form part of broader efforts under the We the UAE 2031 vision that aims to lift total GDP to AED 3 trillion by the end of the decade.
Fiscal and current account surpluses have remained robust, according to World Bank analysis, providing the government with resources to invest in infrastructure, innovation and human capital development. The combination of low inflation, strong domestic demand and expanding trade networks has helped the UAE maintain growth rates above both global and regional averages in recent years. Non-oil activities are now firmly established as the primary engine of economic performance.
