The UAE’s diversification strategy is delivering strong results, with the country’s non-oil economy expanding at its fastest pace in months, according to new market analysis.
Josh Gilbert, Market Analyst at eToro, said: “Recent data underscores the UAE’s success in building a more balanced economy. In August 2025, the non-oil private sector expanded at its fastest pace in six months, driven by strong project activity and solid domestic demand.
“Dubai in particular stood out, recording its highest non-oil output gains in seven months, highlighting the emirate’s leadership in economic diversification.”
Dubai leads UAE non-oil growth
The first half of 2025 saw non-oil foreign trade surge by 24 per cent, further highlighting the UAE’s success in shifting growth beyond energy.
While some headwinds remain — including softer demand, slower sales growth, lower new orders, and rising wage pressures — Gilbert noted that the fundamentals of the economy remain resilient.
Gilbert said: “Businesses remain confident about the outlook. This confidence is supported by government-backed reforms, sustained investment across non-oil industries, and solid domestic conditions.
“For investors, the UAE now presents opportunities far beyond its traditional energy sector.”
That trend is reflected on the Dubai Financial Market, where companies such as Union Properties and Amlak Finance have both gained over 100 per cent this year, underscoring the strength of non-oil opportunities.
“Even as some demand metrics soften, the UAE is successfully reducing reliance on oil and building a diversified, sustainable growth path,” eToro’s Gilbert concluded.
“This is a promising signal for investors looking for exposure to sectors beyond energy in one of the region’s most dynamic markets.”
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