The UAE’s non-oil economy maintained its steady growth trajectory in June 2025, signalling continued resilience in the face of global economic uncertainty. The country’s Purchasing Managers’ Index edged up to 53.5 from 53.3 in May, indicating sustained expansion across the private sector. Although the pace of growth showed signs of slight moderation, core sectors such as real estate and tourism continued to drive the momentum.
Real Estate Maintains Upward Trajectory
Dubai’s real estate sector remained a key pillar of economic strength in the first half of 2025. Transaction volumes rose by 24 per cent year-on-year, while the total value of transactions recorded a 38 per cent increase. In June, both volume and value posted annual growth of 17%, with positive trends visible across all segments of the market.
Dubai’s continued growth reflects its established position as a preferred investment destination for both local and international buyers. This upward momentum is indicative of a mature market, reinforced by consistent demand, clear regulatory oversight, and strategic national policies designed to attract and retain long-term foreign capital.
Abu Dhabi’s real estate market recorded significant progress in the second quarter, with transaction volumes rising 7% year-on-year. Property values registered a sharp increase of 45%, driven by growing investor interest and elevated activity within high-value asset segments.
Tourism Growth
Dubai’s tourism sector continues to outperform expectations. Visitor arrivals in May 2025 increased by 6% compared to the same period last year, while year-to-date figures are up 7%. Most notably, international arrivals have now exceeded pre-COVID-19 levels by 21%.
Dubai’s hospitality sector has experienced strong gains alongside the recovery in tourism. Hotel occupancy rates rose to 83%, supported by robust seasonal demand and the ongoing rebound in international travel.
Backed by a continually advancing tourism infrastructure and a steady schedule of major global events, the city has maintained its position as a leading destination for both leisure and business tourism.
Economic Diversification
Beyond the performance of individual sectors, the UAE continues to demonstrate its long-term commitment to diversification and innovation. A key milestone in June was the signing of the UAE-US Framework on Advanced Technology Cooperation, designed to enhance bilateral collaboration in areas such as innovation, investment, and knowledge transfer.
This agreement aligns with the UAE’s broader national vision to reduce dependence on oil revenues and position itself as a hub for technology, sustainability, and future-focused industries.
Take the Next Step
The UAE’s economic data from June 2025 tells a compelling story of resilience, strategic growth, and diversification. In a world marked by rapid change, the UAE’s approach offers a blueprint for how forward-looking policy and sectoral strength can create lasting economic value.
At One Investments, we follow economic shifts not for headlines, but to uncover substance the kind of developments that shape lasting value. The UAE’s latest economic performance in June 2025 is a clear example. With the non-oil economy maintaining steady growth and the PMI rising to 53.5, the foundations for long-term investment continue to strengthen.
