UAE Non‑Oil Foreign Trade Crosses $1 Trillion

UAE Non‑Oil Foreign Trade Crosses $1 Trillion

Why in News? 

The United Arab Emirates has achieved a historic milestone as its non‑oil foreign trade surpassed $1 trillion (about AED 3.8 trillion) in 2025, marking a 27% growth year‑on‑year.

Historic Milestone: UAE’s Non‑Oil Trade Surpasses $1 Trillion

• The United Arab Emirates (UAE) has achieved an unprecedented milestone with its non‑oil foreign trade crossing USD 1 trillion (approximately AED 3.8 trillion) in 2025, marking the first time in the nation’s history that this threshold has been surpassed.
• The UAE’s non‑oil foreign trade achievement is a 27 % year‑on‑year growth compared to the previous year and a 44.3 % increase over 2023, nearly double the value recorded in 2021 and more than twice that of 2019.
• The composition of this trade underscores its broad scope: non‑oil exports surged to AED 813 billion, up by 45 % year‑on‑year, driven by accelerated shipments of merchandise across multiple categories. This export performance has pushed the export share to 21.6 % of total non‑oil trade by year‑end, rising from 18.8 % in 2024.
• In the final quarter of 2025 alone, non‑oil foreign trade hit AED 1.1 trillion — another historic first — expanding 33.1 % compared to the same period in the prior year. Non‑oil exports during this quarter stood at AED 234.4 billion, representing 53.2 % annual growth.
• Re‑exports climbed to AED 830.2 billion, growing 15.7 % year‑on‑year, and non‑oil imports exceeded AED 2.1 trillion, rising by 25.7 % relative to 2024, reflecting robust demand for foreign goods and intermediate inputs essential for the UAE’s trade ecosystem.

Drivers of This Growth

• Trade and Logistics Infrastructure: A cornerstone of non‑oil trade growth is the UAE’s world‑class transport and logistics ecosystem, underpinned by major sea ports like Jebel Ali Port and large international airports that facilitate efficient movement of goods and serve as critical nodes connecting Asia, Africa, Europe, and the Americas. This infrastructure supports high volumes of imports, exports, and re‑exports.
• Free Zones and Economic Zones: The UAE’s free trade zones have been pivotal in attracting international firms, bolstering trade volumes, and enhancing competitiveness. Key zones like Jebel Ali Free Zone (JAFZA) host thousands of companies engaged in logistics, manufacturing, and global commerce with benefits such as 100 % foreign ownership, tax incentives, and bonded warehousing. 
  • Integrated zones such as Khalifa Economic Zones Abu Dhabi (KEZAD) further combine industry, trade, and logistics in strategic locations to support export‑oriented production.
• Manufacturing and Industrial Output: Non‑oil sectors such as manufacturing — including aluminium, steel, pharmaceuticals, and consumer goods, have expanded their role in foreign trade, supported by initiatives like the UAE’s industrial strategies aimed at increasing industrial contribution to GDP. These sectors feed into both exports and re‑exports.
• Services Sector Growth: Robust activity in financial services, tourism, trade services, and professional services has significantly enriched non‑oil exports and service trade. With non‑oil sectors contributing over 75 % of GDP, services form a substantial base that supports both domestic business activity and international engagement.
• ICT and Innovation: The UAE’s commitment to digital transformation and innovation — including investments in AI, cloud computing, data centres, and cybersecurity — strengthens competitiveness and operational efficiency across trade‑linked sectors. Emerging digital platforms reduce transaction costs and enable real‑time connectivity in supply chains.
• Import and Re‑Export Dynamics: Non‑oil imports — including electronics, automobiles, machinery, and consumer goods — along with sizable re‑exports, contribute to the overall trade ecosystem, supporting global distribution networks that leverage the UAE’s logistical advantages and openness to foreign trade flows.

Global Partnerships and Export Markets

• According to official trade data, exports to countries with Comprehensive Economic Partnership Agreements (CEPAs) that were in force by the end of 2025 — involving 14 partner nations — amounted to AED 175.5 billion, representing 21.6 % of the UAE’s total non‑oil exports and 18.2 % growth compared to 2024.
• Among the top export destinations, India emerged as a major market, with UAE exports to India recording growth of 97.6 % in the first half of 2025 compared to the same period in 2024, making India one of the leading recipients of UAE’s non‑oil goods.
• Turkey was another key export partner with a 24.1 % increase, while Switzerland experienced the highest growth rates among notable markets. Saudi Arabia, the United States, and France also featured among the UAE’s top 10 global trading partners, all posting significant year‑on‑year increases.
• The regional composition of the UAE’s trade continues to show Asia as the leading regional partner, followed by strong ties with Europe and countries in the Middle East and North Africa, with double‑digit growth across these regions in the first half of 2025. Of the UAE’s top 20 trading partners, 18 recorded higher trade volumes, led by India, China, Saudi Arabia, and Türkiye.
• Major exported goods include gold and jewellery, aluminium, cigarettes, refined petroleum oils, ethylene polymers, copper wires, and perfumes — all of which recorded collective export growth of over 64 % compared to 2024.

Implications of This

• Domestic Economic Expansion and GDP Contribution: The UAE’s non‑oil sector now contributes over 75 % of GDP, reflecting deep economic diversification as non‑oil foreign trade exceeds USD 1 trillion in 2025. Growth in exports, imports, and re‑exports reinforces robust activity across manufacturing, services, and logistics, contributing significantly to overall economic output.
• Foreign Direct Investment (FDI) Inflows and Economic Confidence: The record trade performance aligns with the UAE’s strategy to attract higher FDI, with investment help from frameworks such as the National Investment Strategy 2031, which aims to double annual FDI inflows to AED 240 billion (≈ USD 65 billion) by 2031. Such investor confidence is bolstered by trade credibility and global integration.
• Job Creation Across Trade‑Linked Sectors: The expansion of non‑oil trade underpins employment growth in logistics, warehousing, manufacturing, and professional services. Government trade targets and investment strategies linked to non‑oil growth signal thousands of new jobs in export processing, shipping, digital trade platforms, and related sectors as firms scale operations.
• Strengthened India–UAE Economic Benefits: Bilateral non‑oil trade between the UAE and India reached nearly USD 38 billion in the first half of 2025, a 34 % increase over 2024, highlighting India’s expanding export footprint within the UAE market under the Comprehensive Economic Partnership Agreement (CEPA). This growth supports Indian exporters and underpins future trade targets toward USD 100 billion.