The UAE’s non-oil economy remains solid with Abu Dhabi’s property market booming
The UAE is continuing to cement its position as a diversified, innovation-driven economy, with recent data highlighting strong growth in non-oil sectors, particularly real estate, tourism, and technology.
Abu Dhabi, in particular, is emerging as a powerful engine of this transformation.
According to the July edition of the OPEC Monthly Oil Market Report (MOMR), Abu Dhabi’s real estate market recorded a notable surge in Q2 2025.
Transaction volumes rose 7 per cent year-on-year, while values jumped a striking 45 per cent, signalling investor confidence and sustained demand across the capital’s property segments.
This growth story isn’t isolated. Across the Emirates, the non-oil private sector is performing robustly, with the UAE’s June Purchasing Managers’ Index (PMI) expanding to 53.5, slightly up from 53.3 in May.
While momentum has decelerated somewhat from April’s 54 reading, the PMI remains firmly in expansion territory; underscoring resilience across key sectors.
Dubai continues to surge in Real Estate and Tourism
Dubai’s real estate market also continued its sharp upward trend. In the first half of 2025, transaction volumes rose by 24 per cent year-on-year, while values increased by 38 per cent.
In June alone, both volumes and values saw a 17 per cent annual increase, demonstrating broad-based growth and continued appetite for real estate investment.
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Tourism remains another vital pillar of the non-oil economy. Dubai welcomed 6 per cent more visitors in May 2025 compared to the previous year, with year-to-date arrivals up 7 per cent.
This marks a 21 per cent increase over pre-pandemic levels, while hotel occupancy climbed to an impressive 83 per cent.
Investing in the future
Beyond real estate and tourism, the UAE is actively building new engines of long-term growth.
The MOMR report highlighted key developments, including the recent launch of the UAE-US Framework on Advanced Technology Cooperation.
The agreement is focused on fostering joint innovation, strategic investment, and knowledge exchange in sectors such as AI, clean energy, and advanced manufacturing.
These efforts align with the country’s wider economic vision; one that sees oil as a foundation, but not the future.
The UAE’s leadership continues to advance policies that prioritise diversification, global connectivity, and sustainability.
Positioning for a post-oil era
With Abu Dhabi leading strategic investment in high-growth sectors and Dubai reinforcing its global appeal, the UAE’s shift away from oil dependency is no longer aspirational; it’s well underway.
As the OPEC report suggests, strong performance across real estate, tourism, and innovation demonstrates that the country is not just weathering global economic transitions, but capitalising on them.
The UAE is positioning itself not simply as a regional hub, but as a global centre for economic resilience, innovation, and sustainable growth.
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