The United Arab Emirates (UAE) is poised for significant economic growth in 2025, driven by its expanding working-age population. This demographic shift is crucial as it enhances productivity and contributes to the country’s prosperity. According to Maurice Gravier, Group Chief Investment Officer at Emirates NBD, the UAE’s growing working-age population is a key driver of economic growth, particularly when combined with access to capital and technology. This results in productivity gains that are not always seen in other countries with similar demographic trends.
The UAE’s economy has experienced exponential growth post-pandemic, attracting professionals worldwide in sectors like banking, finance, IT, and tourism. The population has reached an all-time high of 11.22 million in 2025, with over two-thirds of the population aged between 25 and 54, forming the bulk of the workforce. Emirates NBD Research projects a 5% GDP growth for 2025, the highest among GCC countries, with both oil and non-oil sectors expanding equally.
The UAE’s economic diversification efforts, including investments in tourism, technology, and real estate, are paying off. The country’s strategic location makes it a hub for international businesses, attracting significant foreign investment. The non-oil sector is expected to drive growth, supported by strong government policies and technological advancements. The UAE’s status as a financial and technology hub, particularly in embracing AI, positions it for continued success over the next decade.
The growth of the UAE’s economy is also influenced by its strong trade relationships and diversification strategies. The country benefits from a low unemployment rate and a highly skilled workforce, making it an attractive destination for investors and professionals alike. Overall, the UAE’s economic outlook for 2025 is robust, with projections indicating it will lead the GCC in economic expansion.
The UAE’s economic resilience is further underscored by its ability to maintain a strong fiscal surplus and manage public debt effectively. The implementation of business-friendly reforms and the introduction of new visa programs have contributed to its appeal as a business hub. As the UAE continues to grow, it is likely to remain a key player in regional and global economic affairs.
