The UAE is trying hard to strengthen its trade ties to diversify its economy. Its economy rose by 4% last year, caused by a robust increase in its non-oil industry.
As the United Arab Emirates (UAE) continues to diversify its economy and establish trade agreements across continents, its non-oil foreign trade increased by 24% annually in the first six months of 2025, defying the global trend.
Sheikh Mohammed bin Rashid, the Vice President and Ruler of Dubai, stated that the total value of non-oil foreign trade for the January-June period increased to Dh1.7 trillion ($462.8 billion), which is twice what it was five years ago.
The average growth of global trade during the first half of this year was 1.75%, which shows the strength of the United Arab Emirates‘ economy and its expanding trade and economic partnerships.
He noted that in the first six months of 2025, the non-oil trade with foreign partners reached a record rate of 120% with Switzerland, 33% with India, 41% with Turkey, 29% with the US, and 15% with China.
The Emirates maintained its record trade boom of 59.5% and 37.8% during the first half of 2022 and 2023, respectively.
Despite growing uncertainties, Arab continues to expand its economic relationship globally, with foreign trade valued at Dh5.23 trillion last year, a 49% increase from 2021.
World Trade Organization reports that the UAE exports surpassed its imports in the 12 months ending in December. So, the total trade surplus of the Emirates in 2024 was Dh492.3 billion.
The UAE is trying hard to strengthen its trade ties to diversify its economy. Its economy rose by 4% last year, caused by a robust increase in its non-oil industry.
Federal Competitiveness and Statistics Centre reports that the UAE’s real gross domestic product for the last year was Dh1.776 trillion.
The non-oil economy increased by 5% to Dh1.34 trillion, making up 75% of its economic activity, while oil-related activities contributed Dh434 billion.
The UAE has signed 28 Comprehensive Economic Partnership Agreements (CEPAs), and the most recent one was with Azerbaijan.
Ministry of Foreign Trade reports that the UAE has started operations for agreements with India, Indonesia, Israel, Turkey, Cambodia, Georgia, Costa Rica, Mauritius, Serbia, and Jordan.
They have not started operations for agreements related to Australia, South Korea, Malaysia, New Zealand, Chile, Colombia, Kenya, Ukraine, Vietnam, the Central African Republic, the Republic of Congo, Eurasia, Belarus, and Azerbaijan.
A major contributor to H1 growth was their non-oil exports, which increased by 44.7% to AED369.5 billion. It accounted for 21.4% of international trade, showing the successful implementation of economic diversification and the global trust in UAE products and services.
UAE’s non-oil trade with its top 10 partners increased by 25.5%, while trade with other countries increased by 23.6%.
UAE bilateral trade with CEPA partners contributed to the growth in non-oil trade. For example, trade with India climbed by 33.9% and 41.4% with Turkey.
UAE export production in its non-oil foreign trade increased from 18.4% to 21.4%.
Non-oil exports reached Dh369.5 billion during the first half, with annual growth of 44.7%. Switzerland was the top destination for the UAE’s non-oil exports, followed by Turkey and India. The value of re-exports increased 14% annually to Dh389 billion.
UAE imports were Dh969.3 billion, a 22.5% increase from the previous year. While imports from other countries increased by 24.3%, imports from the UAE’s top 10 trading partners increased by 20.8%.
UAE trade relations are hurting the global trade growth this year due to US President Donald Trump’s demand for tariffs.
The World Trade Organisation stated that trade faces significant negative risks due to tariffs, causing uncertainty. It predicts global goods trade to decline by 0.2% this year after forecasting growth of 2.7%.