The UAE’s real GDP grew by 3.9% in the first quarter of 2025, while non-oil GDP recorded 5.3% growth and reached AED 352 billion. The ministry said non-oil activities contributed 77.3% of real GDP, the highest share in the country’s history, with trade, finance and insurance, manufacturing, construction, and real estate leading the non-oil economy.

Real GDP growth is estimated at 5.6 percent in 2025, supported by robust non-oil growth (6.1 percent) and moderate oil sector expansion (4.1 percent). Non-oil activity was driven by wholesale and retail trade, manufacturing, and financial services, reflecting continued diversification.

The UAE continues to enjoy sustained economic growth, with GDP projected to increase by approximately 4% in 2025. This growth is driven by the country’s efforts to diversify its economy, with the non-oil sector (especially tourism, financial services and technology) contributing almost 75% of real GDP. The report also says the UAE is investing heavily in clean energy and has committed to achieving net-zero emissions by 2050.

The UAE's energy transition data show a rapid rollout of renewable electricity capacity over the last decade, with total renewable generation rising from near zero to several gigawatts. Market and policy analyses linked from this country profile describe renewables as part of the UAE's broader strategy for economic diversification away from oil, with associated investment in new technologies and infrastructure. These investments typically require engineering services, project development expertise, and skilled technical labour in power systems and solar/wind engineering.

The non-hydrocarbon sector growth is mainly driven by manufacturing, financial services, construction and real estate activities.[3] … At the same time, non-hydrocarbon sectors, including financial services, trade and tourism, are expected to remain resilient, bolstered by ongoing economic diversification plans.[3] Infrastructure development continues to be a key driver of this transition, contributing significantly to diversification efforts.[3]

The labour market in UAE, like many others in the region, is heavily dependent on foreign labour. In 2018, foreign workers accounted for 92.4 per cent of total employment. Employment growth in sectors such as construction, energy, and infrastructure is closely linked to large-scale investment projects, including those driven by sustainability and green growth agendas. Skilled migrant workers play a central role in meeting labour demand in technical and engineering occupations associated with these projects.

Economic growth remained solid through the second half of the year, underpinned by strong nonhydrocarbon activity in parts of the Gulf Cooperation Council (GCC) and resilient domestic demand elsewhere in the region.[7] High-frequency indicators pointed to continued strong activity in early 2026, particularly in services, tourism, and logistics sectors.[7] Although the damage to hydrocarbon production and exports is the primary factor, the large downward revisions also reflect lower nonhydrocarbon economic activity, as manufacturing and services (for example, tourism and logistics) are also hurt.[7]

The energy transition strategies established by GCC countries offer an excellent opportunity to diversify national economies and introduce new non-hydrocarbon sectors to the market. Increasing the local content of the GCC renewable energy industry supply chain can promote economic diversification by circulating significant capital investments to develop new renewable energy power plants across various domestic market sectors. This includes fostering human capital through investments in local startups and small and medium enterprises (SMEs), as well as initiating research and development efforts and adding a sizable share of non-hydrocarbon sector to the national GDP.

The study found a statistically significant relationship between renewable energy and the economy in the United Arab Emirates. The abstract says the research measured the relationship between renewable energy and economic growth using OLS and concluded that renewable energy and GDP were significantly related, although one results table noted no correlation between renewable energy consumption and GDP in the model reported there.

The demand for workers skilled in sustainable construction practices in the United Arab Emirates (UAE) grew 25 per cent since May last year due to higher pay, according to a report released on Friday. From May 2023 to April 2024, the demand for workers skilled in sustainable construction practices surged 25 per cent, particularly for roles requiring expertise in Building Information Modelling (BIM), digital twin technologies, energy efficiency, safety compliance, and sustainable materials management, said a report by UAE-based AI-driven platform Huntr. These skills are critical as the UAE pushes forward with its sustainability practices, focusing on projects that prioritise energy efficiency and waste reduction, the report added.

The UAE's strategic vision for clean energy aims to create 50,000 green jobs and boost economic diversification by 2030. By expanding capacity and investing in renewable energy projects, the UAE seeks to strengthen its non-oil gross domestic product (GDP), with clean energy positioned as a pillar of sustainable economic growth. The strategy highlights that new employment opportunities will emerge in areas such as engineering, project management, technology development, and specialized technical services related to solar and other renewables.

The non-oil sector now contributes 74.6% to real GDP, and industries such as trade, tourism, financial services, and technology play a crucial role in driving this expansion. The narration also says economic growth will be supported by foreign investment, trade, tourism, and government initiatives in technology and green energy.

Continued investment in green energy, technology, and innovation will help reduce reliance on hydrocarbons. The UAE economy is expected to expand steadily, supported by strong trade, tourism, and financial services. However, maintaining global competitiveness in a shifting economic landscape and addressing long-term workforce sustainability remain key challenges.

As the world shifts to renewable energy sources, jobs for experts in solar power, wind power, energy efficiency, and sustainable engineering are growing in demand. The green energy sector needs help attracting and keeping workers with the necessary expertise to keep pace with the rapidly evolving energy demands. Key roles in demand include renewable energy project managers, solar and wind energy engineers, energy efficiency specialists, grid integration experts, EV infrastructure specialists, energy storage technicians, and sustainable building designers and consultants, all of which require skilled labour and specialized engineering and technology services in the GCC, including UAE.

From record non-oil trade and strong GDP growth to rising investment and entrepreneurship, the UAE is cementing its place among the world’s fastest-growing economies — with even bigger ambitions for 2026. The UAE’s non-oil economy has reached a record AED 1.5 trillion, with non-oil GDP expanding 6.8% in 2025. The milestone reflects the impact of diversification policies and growing sectors such as renewable energy, advanced manufacturing, and technology-driven services.

Non-Oil GDP Contribution • Now at 74.6% of national GDP (end-2024), compared to ~64% a decade ago • Reflects growth in fintech, logistics, manufacturing, tourism, AI, and renewable energy.[2] National Strategic Anchors – Clean Energy and Climate Commitments • Renewable target: Triple capacity to 14 GW by 2030 • Investment: $54.5 billion (AED 200 billion) for clean energy, green hydrogen, and Net Zero 2050 goals.[2] The UAE’s commitment to enhancing its global footprint, especially in clean energy and AI, positions it as a prime destination for investment, attracting skilled labor and advanced engineering and technology services.[2]

Following an estimated 5.4 percent expansion in 2025, the UAE economy is expected to grow by around 5 percent in 2026, supported by rising oil production, resilient non-oil activity, expansionary fiscal policy, and deepening trade integration. The non-oil sector is expected to remain the primary engine of growth in 2026, with non-oil GDP projected to expand by around 5.3 percent, only slightly below 2025 levels. Additionally, the energy transition is fueling construction of renewable energy plants (such as solar farms in Al Dhafra and Mohammed bin Rashid Solar Park) and related infrastructure, supporting demand for construction, engineering and specialized technical services.

The market outlook for renewable energy in the United Arab Emirates projects continued growth, driven by increasing demand for energy worldwide as populations grow and economies develop. The analysis describes expanding investments in renewable technologies and infrastructure, which underpin new business opportunities and service requirements in engineering, project development, and technology solutions. Such expansion contributes to the broader non-oil economy by creating value chains in equipment, services, and skilled employment related to solar and other renewable sources.

With projected growth of over 5% in 2026 and a 5.5% expansion in non-oil sectors, the focus on diversification, innovation, and sustainable development continues to drive the UAE’s economic strategy. Investments in renewable energy, logistics, and advanced technology are expected to support non-oil GDP while creating new opportunities for skilled labor and professional services.

The UAE economy is set to expand by 4.8% in 2025, driven by steady, broad-based growth across both oil and non-oil sectors.[5] According to the analysis, diversification into sectors such as renewable energy, advanced technology, and services is bolstering non-oil GDP and creating new employment opportunities.[5] Non-oil growth is supported by increased investments in clean energy projects, which require specialized engineering services and skilled technical labor.[5]

Dubai’s economy maintained strong momentum in Q1 2026, with GDP reaching AED 232 billion, up 2.4 percent compared to the same period last year, according to Dubai Media Office. Growth was supported by several key sectors, including electricity, gas and water, construction, financial and insurance activities, real estate, and wholesale and retail trade. The emirate continued to benefit from investments in renewable energy projects and related infrastructure, which have spurred demand for engineering, project management and technology services.

Migrants working on renewable energy projects in the United Arab Emirates say they are the victims of abusive conditions that could amount to forced labour, an investigation by a human rights group has found. Equidem interviewed 34 migrant workers from South Asia and Sub-Saharan Africa employed in the supply chain of 10 major renewable energy developers mostly from Europe and the Gulf States, which operate solar and wind projects in the UAE. They worked for 14 local subcontracting companies, including renewables specialists such as solar installers and technicians, and firms providing services such as transport, security and cleaning, indicating that renewable expansion is generating labour demand across technical and support services, albeit with serious labour-rights concerns.

Iran conflicts also bolstered the necessity for renewable energy, as solar and wind power can reduce vulnerability to external supply and decentralized generation can strengthen energy security for Gulf states, including the UAE.[8] With fluctuating oil prices, renewable energy has become significantly more cost-competitive, encouraging investment in non-oil energy infrastructure and associated services.[8] Several Gulf states have experienced declines in trade activity and infrastructure disruptions linked to drone and missile attacks, which has led to calls for accelerated energy transition and diversification of their economies.[8]

Migrants working on renewable energy projects in the United Arab Emirates say they are the victims of abusive conditions that could amount to forced labour, an investigation by a human rights group has found. They worked for 14 local subcontracting companies, including renewables specialists such as solar installers and technicians, and firms providing services such as transport, security and cleaning. This investigation, while focused on abuses, also documents that the renewable energy sector in the UAE relies on layers of subcontracted labour in specialized technical roles and ancillary services, reflecting increased labour demand linked to these projects.

The article discusses "UAE's New Horizon: Life After OPEC and the Surge in Global Manpower Demand," arguing that the country's strategic shift towards diversified sectors including renewable energy is changing its labour market. It notes that rapid scalability of clean energy projects and rigorous trade testing for technical roles are driving global manpower demand, particularly for engineers, technicians, and other skilled professionals. This reorientation is presented as part of the UAE's plan to sustain economic growth beyond oil by investing in sectors that require advanced technological and engineering capabilities.

UAE ranked first globally (once again) for non-oil GDP growth! While global trade grew just 1.75%, the UAE’s non-oil foreign trade surged by 24% in the first half of 2025, reaching 1.7 trillion dirhams, nearly double what it was just five years ago. These numbers are linked to the country’s aggressive diversification agenda, including investments in renewable energy, logistics infrastructure and knowledge-based industries that absorb skilled professionals and technical services.

From increasing oil production to expanding export infrastructure, S&P Global Ratings expects the UAE's real GDP growth to average 6% between 2027 and 2029. Although hydrocarbons remain important, the report highlights ongoing investments in non-oil sectors such as renewable energy, manufacturing, and services as key to sustaining economic growth and supporting labour demand in high-skill segments.

The UAE has set ambitious targets for renewable energy capacity, notably through projects such as the Mohammed bin Rashid Al Maktoum Solar Park and Al Dhafra solar complex. These projects are framed by policymakers as central to economic diversification, stimulating non-oil GDP and requiring significant inputs from engineering services, project finance and advanced technology providers in the domestic economy.

This study examined the impact of global renewable energy demand on GCC economic growth and found a significant negative relationship between global renewable energy consumption and GCC economic growth. It also reported a positive and significant relationship between GCC economic growth and labor, capital, CO2 emissions, and non-renewable energy production, which provides a contrasting regional perspective on how renewable energy demand may affect oil-exporting economies.