ECONOMY
General Information
The main currency of the UAE – AED – UAE dirham (Dh).
Among the key priorities of the country's socio-economic development are increasing the total volume of foreign trade to 1 trillion US dollars and doubling economic indicators. The strategy is actively implemented through the conclusion of Comprehensive Economic Partnership Agreements (CEPA), which provide for the abolition or reduction of customs duties, simplification of procedures, and expansion of cooperation. To date, the UAE has concluded such agreements with 28 countries, providing businesses with access to markets of nearly a quarter of the world's population.
The UAE economy is one of the most diversified in the Persian Gulf region. The nominal GDP of the UAE in 2024 amounted to 537 bil. US dollars. It is expected that by the end of 2025, this indicator will reach 540,35 bil. US dollars.
The structure of the economy of the United Arab Emirates is distributed as follows: the service sector forms approximately 54% of GDP, industry – 44%. Within the industrial sector, oil and gas extraction is a key component.
The main sources of foreign currency earnings have historically been exports of oil and natural gas. However, thanks to the strategy of economic diversification, tourism has begun to play a significant role; according to forecasts, international tourist spending in 2025 will reach 267,5 bil. dirhams (approximately 73 bil. dollars), which will constitute almost 13% of GDP. Non-oil foreign trade is actively growing.
Special attention is paid to the development of renewable energy, including expansion of the use of solar energy. In parallel, modernization of the oil and gas complex continues with plans to increase production capacity.
Share of Economic Sectors
The UAE economy is traditionally based on the oil and gas sector, but is actively developing non-oil sectors, including tourism, trade, financial services, and logistics.
The service sector – approximately 54% of GDP – is a key driver of the UAE's diversified economy. Trade, tourism, and transport – approximately 25%; finance and insurance – approximately 8-12,7%; real estate and construction – approximately 15%.
The industrial sector maintains its importance, the foundation of which remains oil and gas extraction and processing – approximately 44%. In parallel, manufacturing industries such as metallurgy are developing.
Foreign trade demonstrates steady growth dynamics. The UAE's foreign trade strategy includes active expansion of international partnerships through the conclusion of free trade agreements, such as with the EAEU. One example of developing trade relations is the agreement with New Zealand, which is expected to increase annual bilateral trade to $5 bil. by 2032.
Export and Import
In 2023, UAE imports amounted to 93,72% of GDP, while exports showed a growth of 6,88%. The value of UAE goods exports in 2023 was estimated at 570,24 bil. US dollars. The country continues to strengthen its position as a global trade hub. Although the oil and gas sector remains an important part of exports, its share in the overall structure is declining due to a targeted diversification policy.
A significant share in non-commodity exports is occupied by natural gas, crude oil, metals (aluminum and copper).
Main export partners: China, India, USA, Saudi Arabia, Turkey.
Imports are characterized by a diverse product structure. The country imports:
- Machinery, equipment, and electronics;
- Precious stones and metals;
- Vehicles;
- Chemical industry products;
- Food products and textiles.
Main import partners: China, India, USA.
Labor Force
The UAE labor market is characterized by a high degree of internationalization and continues to attract foreign specialists and investors. Business activity growth is confirmed by an increase in the number of business licenses issued. This is facilitated by ongoing economic reforms, improvement of the business environment, and simplification of administrative procedures. The labor force in the UAE consists mainly of foreign migrant workers (more than 88%) in various sectors such as construction, tourism, finance, and technology. UAE citizens are employed almost exclusively in management and business spheres.
There is constant growth in the labor force, driven both by the influx of migrants and the government's efforts to attract specialists, which creates favorable conditions for career growth.