The latest insights reveal that the UAE’s non-oil economy remains robust in June, driven by significant growth in real estate and tourism. This reflects a resilient economic landscape despite a slight moderation in growth rates. The stability is underpinned by strong performance in key sectors, particularly real estate and tourism, which are central to the UAE’s diversification strategy. As performance in these sectors continues to impress, the report offers a hopeful outlook for the ongoing development of the UAE economy.
The figures indicate continued economic expansion, even as the pace of growth shows signs of slight moderation.
The report highlights that private sector performance remains strong, driven by momentum in the UAE’s key real estate and tourism sectors.
UAE Economy Outlook
In Dubai, real estate continued its exceptional run. Year-to-date transaction volumes through June rose 24 percent year-on-year, while the total transaction value jumped 38 percent over the same period. In June alone, volumes and values increased approximately 17 percent year-on-year, with growth spread across all segments of the market.
Meanwhile, Abu Dhabi’s real estate market also showed strong gains in Q2 2025. Transaction volumes were up 7 percent year-on-year, and property values surged by 45 percent, reflecting rising investor interest and high-value asset activity. This positivity in the real estate sector underscores the strength of the UAE’s non-oil economy in June.
The tourism sector also remained a bright spot. In Dubai, May 2025 arrivals climbed 6 percent year-on-year, while year-to-date visitor numbers are up 7 percent, exceeding pre-COVID-19 levels by 21 percent. Hotel occupancy rates reached 83 percent, highlighting strong seasonal demand and a recovery in global travel. The surge in tourism further solidifies the strength of the UAE’s non-oil economy in June.
Beyond these sectoral gains, the UAE continues to pursue strategic initiatives to diversify its economy and enhance global competitiveness. The MOMR noted a major milestone with the signing of the UAE-US Framework on Advanced Technology Cooperation, aimed at promoting joint innovation, investment, and knowledge transfer. These developments reflect the UAE’s long-term strategy to position itself as a global hub for innovation, real estate investment, and sustainable economic growth, even as it navigates a complex global landscape.
Overall, the positive trends in real estate and tourism highlight an optimistic future for the UAE economy, demonstrating once again the strength of the UAE’s non-oil economy in June.