Dubai Economic growth and Diversification .

Economic Growth and Diversification The UAE economy is forecasted to grow by 4–6.2% in 2025, outpacing all Gulf peers, with key drivers including energy transition, major infrastructure projects, and expansive tourism and trade diversification. Foreign Direct Investment (FDI) inflows reached a record AED 167.5 billion in 2024, reinforcing the UAE’s global lead and preparing the ground for sustained inflows in sectors such as real estate, finance, IT, and manufacturing in 2025. Federal Budget and Strategic Investments The 2025 federal budget is the largest in UAE history, at AED 71.5 billion. This budget supports public affairs (35.8%), education (15.3%), healthcare (8%), social affairs (5.2%), and infrastructure (3.6%), demonstrating a strong commitment to social welfare, innovation, and competitiveness. Major focuses include quality education, healthcare improvement, inclusive social programs, pension security, and world-class infrastructure. Digital, Social, and Sustainability Initiatives The UAE Digital Government Strategy 2025 is transforming government services via advanced digitalization, user-centric design, and open data, ensuring inclusivity and resilience in public services and citizen interactions. President Sheikh Mohamed bin Zayed Al Nahyan declared 2025 as the Year of Community under the “Hand in Hand” initiative, emphasizing unity, empowerment, and social growth. Sustainability remains central, with significant investments in green technologies, renewable energy, and climate-resilient infrastructure, supporting long-term Vision 2030 goals. Sectors Leading Progress Education and Innovation: Billions invested to create a skilled workforce for the knowledge economy. Healthcare: Expansion of facilities and preventive care programs to uplift public health outcomes. Infrastructure, Science, Exploration: Large-scale transport and technology projects (e.g., airport expansion, digital infrastructure, interplanetary missions) are underway. The UAE is establishing itself as a global platform for future-focused sectors and entrepreneurship. Outlook The UAE’s progress in 2025 is marked by the bold scaling of investments, continued economic diversification beyond oil, sweeping digitalization, and strategic focus on inclusive growth and sustainable prosperity. The UAE is fast-tracking its position as a resilient regional leader and a global innovation hub