UAE's GDP expected to reach $462.8 billion for the first time: Sheikh Mohammed

According to His Highness Sheikh Mohammed bin Rashid Al Maktoum, the UAE’s GDP is projected to exceed AED 1.7 trillion (approximately $462.8 billion) for the first time, with foreign trade surpassing AED 2.8 trillion (approximately $762.3 billion).

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, chaired the first meeting of the UAE Cabinet for 2025 at Qasr Al Watan in Abu Dhabi. The meeting was attended by His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Minister of the Presidential Court; His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence; His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance; and His Highness Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Foreign Affairs.

His Highness Sheikh Mohammed bin Rashid Al Maktoum stated, "Today, I chaired the first Cabinet meeting of the new year, a year of prosperity, happiness, growth, and stability for the people of the UAE." He added, "During the meeting, we reviewed the achievements of 2024, which was the most significant year economically and developmentally since the founding of the UAE. Under the leadership of my brother, the President of the UAE, our nation has strengthened its global presence, signing over 140 international agreements in vital sectors such as economy, sustainability, clean energy, technology, artificial intelligence, security, defense, and international humanitarian efforts."

His Highness Sheikh Mohammed bin Rashid Al Maktoum said, "The UAE government has successfully completed a three-year initiative involving 2,500 officials to update all legislation issued since the union’s inception. This effort modernized 80% of the country’s economic, social, and regulatory laws, fostering an environment conducive to growth." He also noted, "Consequently, the number of new companies established in 2024 surged to 200,000, and foreign trade exceeded AED 2.8 trillion for the first time. Foreign direct investment is expected to reach AED 130 billion, and industrial exports are projected to surpass AED 190 billion, both unprecedented milestones."

His Highness Sheikh Mohammed bin Rashid Al Maktoum added, “In the same year, our airports welcomed 150 million passengers, and our hospitality sector hosted over 30 million guests. UAE youth launched 25,000 SMEs, seamlessly integrating into the national economy. Furthermore, driven by the Nafis program, the participation of Emirati citizens in the private sector grew by 350%, with 131,000 citizens employed in the sector for the first time.” He also mentioned, “The UAE government also launched over 750 national projects and initiatives to foster development, attract top talent, and secure investments. Additionally, the Cabinet and Ministerial Development Committee issued 1,300 decisions, establishing the optimal regulatory environment for accelerated growth over the next two decades.”

His Highness Sheikh Mohammed bin Rashid Al Maktoum concluded, “As we embark on the new year, the UAE government reaffirms its commitment to the President, the people of the UAE, all residents, and all who believe in our development model. We will continue on the path of progress, openness, and modernization, ensuring the most favorable business environment and the highest quality of life for all… The outlook for 2025 is even greater, more beautiful, and more inspiring.”

The UAE Cabinet, under the directives of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, reviewed its performance in 2024, which served as a roadmap for the federal government in 2024. These directives emphasized the importance of strengthening the UAE’s identity globally, fostering innovation, supporting national sustainability initiatives, and enhancing the education sector. In 2024, the Cabinet issued over 1,300 resolutions across 22 meetings. The federal government allocated approximately AED 70 billion to implement nearly 750 national projects and initiatives, including over 200 transformative projects aimed at significantly advancing key developmental sectors.

Prioritizing the strengthening of national identity, the UAE federal government enacted 54 resolutions, including the approval of the Federal Cultural Heritage Law, the launch of national cultural and creative initiatives, the adoption of the National Youth Agenda 2031, and the declaration of the National Policy for the Preservation of Modern Architectural Heritage. The UAE also hosted and participated in international cultural events and conferences, further promoting the UAE’s identity on the global stage, including the World Conference on Culture and Arts Education and the signing of several international memorandums of understanding related to cultural cooperation.

The UAE demonstrated its ongoing commitment to innovation by joining the international Lunar Gateway space station project with the US, Japan, Canada, and the European Union. It also became the first Arab nation to establish a permanent polar research base. The government launched a groundbreaking “Zero Government Bureaucracy” program aimed at streamlining procedures. Over 84 national legislations and initiatives were introduced to foster progress in strategic and emerging sectors, with a particular focus on technology and artificial intelligence. The government approved over 40 related projects, legislations, initiatives, and international agreements to attract top talent, companies, and investments.

During the Year of Sustainability in 2024, the UAE government continued its dedication to this area, enacting over 87 policies, initiatives, and regulations. Key actions included launching the "Planting the UAE" national program, introducing a federal law addressing the impact of climate change, adopting the National Biofuel Policy, establishing a common framework for sustainable digital transformation, hosting the World Food Security Summit, and participating in international environmental and sustainability events. The UAE also signed several international agreements and memorandums of understanding supporting renewable energy, hydrogen and energy strategies, the circular economy, and biodiversity.

The UAE government, viewing education as a vital sector, reformed its approach, encompassing all aspects from early childhood and family development to higher education, training, and empowering future workforce leaders. This restructuring included the establishment of the Ministry of Family Affairs and the Ministry of Higher Education and Scientific Research, as well as the restructuring of the Education and Human Resources Council, the Ministry of Education, and the Ministry of Community Empowerment. The government reaffirmed education as the cornerstone of comprehensive development, implementing numerous supportive policies and programs. Key measures included a new framework for classifying higher education institutions, a scholarship funding system for federal universities, innovative school management models incorporating advanced educational concepts, hosting the Special Olympics Global Center Summit, and confirming the UAE as the host of the UAE Medical Education Conference 2025.

The UAE’s robust education system currently serves over 1.2 million students in 1,325 public and private schools and educational institutions. This year saw the addition of over 20 new public and private schools, providing capacity for over 23,000 students. The UAE also has 107 public and private universities and higher education institutions, with a student population of over 200,000, including over 96,000 international students. Under the guidance of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, with the support of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, and under the supervision of His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Minister of the Presidential Court, the “NAFIS” initiative and Emiratization policies have achieved remarkable success, leading to over 131,000 Emirati citizens entering the workforce for the first time, a significant increase compared to the 29,000 Emiratis employed before the program’s launch, with a roughly 350% increase in Emirati participation in the private sector. Additionally, policies and initiatives promoting entrepreneurship and supporting SMEs resulted in over 25,000 new companies fully owned by Emirati citizens entering the economy.

Recognizing family stability as a crucial priority, the federal government empowered Emirati families through the Sheikh Zayed Housing Program. In 2024, the program issued over 5,600 housing approvals, a substantial increase compared to the previous annual average of 2,000. The total value of these approvals reached AED 4 billion, significantly surpassing the previous average of AED 1.6 billion in prior years.

To modernize its legal framework, the UAE federal government updated over 80% of the laws enacted since the union’s inception in 1971. In 2024, over 2,500 officials from federal, local, and private sector entities, in 215 specialized national teams, issued and updated over 47 federal laws and 130 regulatory resolutions. Supporting this initiative is the "UAE Legislation" platform, a digital repository containing over 1,000 federal laws and resolutions, attracting 500,000 monthly visits (over 40% from international), and linked to local government platforms for seamless access.

Future initiatives will focus on measuring the impact of these legislations and laws across all national sectors of the country, developing a global model for assessing legislative impact, and highlighting the country's efforts and readiness in this field internationally, and integrating artificial intelligence in the development and analysis of legislative impacts.

The UAE continued to emphasize global economic partnerships, finalizing Comprehensive Economic Partnership Agreements (CEPAs) with 12 countries in 2024, bringing the total number of agreements to 24, with 15 signed and 9 expected to be announced soon. The UAE’s GDP is projected to exceed AED 1.7 trillion for the first time, with foreign trade surpassing AED 2.8 trillion. Non-oil exports are projected to exceed AED 540 billion, imports are projected to exceed AED 1.6 trillion, and re-exports are projected to exceed AED 700 billion. Foreign direct investment is expected to reach AED 130 billion, up from AED 111 billion in 2023, maintaining the UAE's first place regional ranking and 11th place globally. Local economic development departments and free zones, supported by the Ministry of Economy, issued over 200,000 new economic licenses in 2024. The UAE's unified economic register now lists nearly 1.1 million registered businesses.

The industrial sector’s contribution to GDP is estimated at over AED 210 billion, with industrial exports exceeding AED 190 billion. This success is driven by over 15,000 companies providing products and services, employing over 11,000 Emirati citizens. As part of the UAE's commitment to providing suitable employment opportunities, high quality of life, streamlined services, and the best business environment for attracting investment, talent, and top services, the modernized visa and entry permit system issued over 23 million visas and entry permits in 2024.

Over 150 million visitors passed through the UAE’s ports and airports. Preliminary national estimates indicate record success in tourism and culture, with over 30 million hotel guests in 2024, resulting in over 105 million hotel guest nights, placing the UAE among the highest hotel occupancy rates globally.

To strengthen the UAE’s international presence, the Cabinet approved joining and ratifying 140 international agreements and memorandums of understanding with over 55 countries and specialized organizations. These agreements cover various fields, including economy, finance, investment, artificial intelligence, advanced technology, environment, sustainability, climate change, clean energy, taxation, judiciary, security, defense, aviation, and humanitarian work. The Cabinet also approved hosting several international conferences and events in the UAE and establishing regional headquarters for several international organizations focused on providing humanitarian and social projects globally.

The UAE Cabinet reviewed the implementation progress of the national drug policy. From 2018 to 2023, drug sales grew by an average of 11.1% annually. Sales are projected to reach AED 20.5 billion in 2024, AED 21.8 billion in 2025, and AED 26.4 billion by 2028. In 2023, sales by national pharmaceutical manufacturers totaled AED 862.3 million, representing 4.4% of the domestic market, a growth of 8.9% compared to 2022. Between 2018 and 2024, the number of medical product factories increased by 90%, while the number of locally manufactured and approved medical products increased from 720 in 2010 to 1,925 in 2023, a growth of 120%.

The share of locally manufactured medicines in the total market increased from 19% in 2018 to 23% in 2023. The number of pharmaceutical personnel increased from 11,827 in 2019 to 16,263 in 2023, and the number of pharmacies increased from 3,111 to 4,359 (a 40% increase). Drug patents increased from 166 in 2017 to 536 in 2023, with a cumulative total of 2,213.

To further diversify the national economy, the UAE Cabinet reviewed the economic indicators of the cultural and creative industries in 2022, which include news and literature, music, theater and opera, photography, software, databases, visual arts, graphic design, film equipment, clothing, textiles, footwear, jewelry, coins, and interior design. The sector’s contribution to the national GDP was 4.1%, growing from AED 61.3 billion in 2021 to AED 76.2 billion in 2022, an annual growth rate of 24.4%. The sector's employment reached 522,873, reflecting an annual growth rate of 25.6%. Additionally, the number of cultural and creative institutions reached 65,801, with related exports totaling AED 63.8 billion.

In international relations, the UAE Cabinet approved agreements with Australia on a comprehensive economic partnership, with Turkey on reciprocal investment promotion and protection, and with Bahrain on the avoidance of double taxation on income and the prevention of tax evasion. It also approved a protocol amending the agreement with Switzerland on the avoidance of double taxation. The Cabinet approved memorandums of understanding between the UAE Ministry of Energy and Infrastructure and the energy cooperation sectors of the United States and Kenya, the electric vehicle sector of Portugal, and the mining investment sector of Argentina. Further memorandums of understanding were approved between the UAE Ministry of Higher Education and Research and the higher education and research sector of Paraguay, as well as between the UAE and the government operations sector of the Philippines. The Cabinet also approved memorandums of understanding between the UAE Cybersecurity Council and the Ethiopian Institute of Artificial Intelligence, and the National Cybersecurity Center of the Dominican Republic. A memorandum of understanding was also approved between the UAE National Center of Meteorology and the Bulgarian Antarctic Institute regarding Antarctic research.

Authorization was granted for Zayed University to negotiate academic partnerships with the International Business University in Canada, and for the UAE, Albania, and Italy to negotiate a tripartite strategic partnership framework in energy and infrastructure. Several other agreements and memorandums of understanding aimed at enhancing the UAE’s global position were also approved.

The Cabinet reviewed the outcomes of hosting several international conferences and events, including the IEEE International Conference on Applications of Information and Communication Technology, the 8th International Workshop on Wadi Systems Flash Floods, the 4th International Conference on Sustainable Management of Gulf Ecosystem Health under Climate Change in the Gulf Region, the 15th Undergraduate Research Conference on Applied Computing, the Explorance Bluenotes MENA Conference, and the 2024 Cryptocurrencies Research Conference.

In legislative affairs, the Cabinet approved drafting a federal law on the National Zakat Platform. Several executive regulations and regulatory decisions were also approved, including regulations on Federal Decree Law No. 41 of 2023 (regarding regulating the accounting and auditing profession) and Federal Decree Law No. 36 of 2023 (regarding regulating competition), as well as a Cabinet decision on the related percentages for applying the competition law.

Further decisions concerned the human resources and financial systems for employees of mosques under the General Authority for Islamic Affairs and Endowments (Awqaf), and the technical regulations for non-tobacco nicotine pouches.

In government affairs, the Cabinet approved the restructuring of the Arabic Language Advisory Council, chaired by the Minister of Culture. It also approved the final accounts of the General Pension and Social Security Authority for the fiscal year 2023 and its budget for 2025.

The Cabinet reviewed the latest developments of the cashless government project, the annual report on the regulatory framework for the energy services companies (ESCO) market for 2024, and the performance report of the Emirates Investment Authority for the period from January 1 to September 30, 2024.