In its September 2025 Monthly Oil Market Report (MOMR), OPEC highlighted that the UAE’s non-oil sector continues to show solid resilience, with steady overall growth. The report pointed out that the UAE’s Purchasing Managers’ Index (PMI) bounced back to 53.3 in August, after dropping to 52.9 in July — the lowest in four years. The dip was mainly due to regional uncertainty and tougher competition affecting new orders.
OPEC also emphasized the UAE’s strong economic stability, noting that Fitch Ratings reaffirmed the country’s sovereign credit rating at “AA-” with a stable outlook. This reinforces the UAE’s financial strength and boosts confidence among global investors.
UAE’s Non-Oil Economy Shows Strong Growth
The latest OPEC Monthly Oil Market Report (September 2025) highlights that the UAE’s non-oil economy is staying strong and growing steadily.
In August, the UAE’s Purchasing Managers’ Index (PMI) bounced back to 53.3, after falling in July to 52.9, its lowest in four years. This shows that businesses are expanding again, even with regional challenges and rising competition.
The country’s solid performance is also supported by Fitch Ratings, which confirmed the UAE’s strong AA- credit rating with a stable outlook. This builds investor confidence and reflects the strength of the nation’s economy.
Non-oil trade also played a key role in growth. In the first half of 2025, foreign trade grew by 24%, far higher than the global average of 1.8%. This reinforces the UAE’s position as a major global trade hub.
Tourism Boosts Economic Growth
Tourism remains one of the biggest drivers of growth. Dubai welcomed nearly 10 million visitors in just the first six months of 2025. This is part of Dubai’s D33 agenda, which aims to make the city a top global destination and boost government revenues.
Real estate is also booming. In Dubai, property sales and values rose sharply in 2025, with transaction volumes up 24% and values up 38% year-on-year. Abu Dhabi also saw growth, with real estate values jumping 45% in the second quarter of 2025.
Hotel occupancy rates reached 83%, while overall tourist arrivals are now 21% above pre-COVID levels, showing a strong recovery in the sector.
Global Oil Demand
On a global level, OPEC expects oil demand to rise by 1.3 million barrels per day (mb/d) in 2025, with most of the growth coming from non-OECD countries. For 2026, demand is forecast to increase by 1.4 mb/d. Fuels like gasoline, jet fuel, and diesel will remain the main sources of growth, followed by LPG and naphtha used in petrochemicals.
Innovation and Diversification
The UAE continues to push forward with diversification plans such as “Operation 300bn”, which aims to boost manufacturing, attract investment, and expand exports.
Recent developments include the launch of a UAE-US Framework on Advanced Technology Cooperation, highlighting a shared focus on innovation, investment, and sustainable growth.
The government is also supporting new sectors like fintech, digital industries, clean energy, construction, and education, which will play a big role in the future economy.
Editor-at-Large
A passionate writer in the lubricant industry, Awais Iqbal has been covering oils, greases, and industrial fluids since the start of his career. At 25, he’s already written for blogs, catalogs, and brand guides across the UAE. Awais’s insights help companies connect with their audience, and his clear, helpful writing style is trusted by brands in the region.
