Robust expansion in Abu Dhabi, strategic investments in technology, and rapid AI adoption position the UAE as the region’s strongest performer
The United Arab Emirates has emerged as the Gulf’s fastest-growing economy in 2025, reaffirming its position as the region’s most dynamic financial hub. According to Dr. Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), the UAE recorded the strongest economic performance among Gulf Cooperation Council (GCC) countries this year — a milestone driven by visionary leadership, diversified growth strategies, and technological advancement.
A significant contributor to this performance has been the rapid expansion of Abu Dhabi’s non-oil sectors. The capital’s continued investment in logistics, advanced manufacturing, clean energy, and cultural initiatives has reinforced its global competitiveness. Major infrastructure projects and foreign investment inflows have further strengthened the emirate’s economic resilience, helping to offset global uncertainties and fluctuating oil prices.
The IMF highlighted the UAE’s accelerated focus on technology and artificial intelligence as another key driver of growth. Dubai and Abu Dhabi have positioned themselves as global leaders in AI adoption, digital transformation, and innovation-driven economic planning. New tech hubs, AI regulatory frameworks, and increased funding for research and development have attracted global companies, entrepreneurs, and talent — fuelling a new era of economic diversification.
Dr. Azour noted that the UAE’s strong performance reflects sustained policy reforms, strategic national initiatives, and its commitment to fostering a future-ready economy. As regional competition intensifies, the UAE’s ambitious growth model continues to set a benchmark for its Gulf peers.
With robust domestic demand, expanding global partnerships, and a technology-powered development framework, the UAE is poised to maintain its momentum through 2025 and beyond — strengthening its reputation as the Gulf’s leading economic powerhouse.
