UAE's non-oil foreign trade hits $462.8bn in first half, defying trends

Global trade managed average growth of 1.75 per cent in January-June period

The UAE's non-oil foreign trade reached Dh1.7 trillion in the first six months of 2025. Photo: DP World

The UAE's non-oil foreign trade rose by 24 per cent annually in the first six months of 2025, bucking the global trend as the Emirates continues to diversify its economy and forge trade deals across continents.

The value of aggregate non-oil foreign trade for the January-June period jumped to Dh1.7 trillion ($462.8 billion), double the level from five years ago, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said on social media platform X on Wednesday.

The average growth of global trade during the first half of this year was about 1.75 per cent, which underpins the strength of the UAE economy and its growing trade and economic partnerships.

“The numbers speak of our economic relations with the world … and unprecedented development for the UAE. The numbers say that the future will be more beautiful and greater,” Sheikh Mohammed said.

“Our non-oil trade with our international partners surged at a record rate in the first half of 2025, reaching 120 per cent with Switzerland, 33 per cent with India, 41 per cent with Turkey, 29 per cent with the US, and 15 per cent with China,” he added.

The UAE continued the “unprecedented boom” in trade with growth rates of 59.5 per cent and 37.8 per cent compared to the first half of 2022 and 2023, respectively, Sheikh Mohammed said.

Foreign trade of the UAE was worth Dh5.23 trillion last year, a 49 per cent rise from the levels achieved in 2021 as the Arab world's second largest economy continues to expand its economic relations around the world despite mounting uncertainties that slow trade.

The Emirates achieved a total trade surplus of Dh492.3 billion in 2024 as the country's exports exceeded imports in the 12 months to the end of December, the UAE Government Media Office said in April, quoting data from the World Trade Organisation.

The UAE is putting emphasis on strengthening its trade ties as part of its economic diversification efforts.

The UAE’s economy grew by 4 per cent last year, driven by a strong expansion in its non-oil sector.

The country's real gross domestic product at the end of last year reached Dh1.776 trillion, the UAE’s Ministry of Economy said in June, quoting data from the Federal Competitiveness and Statistics Centre.

The non-oil economy grew by 5 per cent annually to Dh1.34 trillion, accounting for more than 75 per cent of the country's economic activity, while oil-related activities contributed Dh434 billion to the overall economy.

The Emirates has already signed 28 Comprehensive Economic Partnership Agreements (Cepas), with the latest deal signed with Azerbaijan earlier this month.

Ten of these deals – with India, Indonesia, Israel, Turkey, Cambodia, Georgia, Costa Rica, Mauritius, Serbia and Jordan – have been implemented and are operational, according to data from the Ministry of Foreign Trade. These are already yielding benefits.

Agreements with other trading partners – Australia, South Korea, Malaysia, New Zealand, Chile, Colombia, Kenya, Ukraine, Vietnam, Central African Republic, the Republic of Congo, Eurasia, Belarus and Azerbaijan – are yet to be implemented. Talks have also concluded with the Philippines, Morocco and Armenia.

“Our non-oil foreign trade continues to reap the benefits of this programme, under which we have concluded 28 agreements to date, 10 of which have entered into force. This means we can offer unhindered customs access to markets where nearly three billion consumers live,” Sheikh Mohammed said.

The UAE's non-oil trade with its top 10 partners grew by 25.5 per cent, while trade with other countries expanded by 23.6 per cent year-on-year last year, according to state news agency Wam.

The growth in non-oil trade has been fuelled by the UAE's bilateral trade with Cepa partners. For example, trade with India rose 33.9 per cent and with Turkey it increased by 41.4 per cent, Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, said in a post on X on Wednesday.

The share of exports in the UAE's non-oil foreign trade rose to 21.4 per cent, up from 18.4 per cent in the first half of last year, Wam reported.

Non-oil exports reached Dh369.5 billion during the first half, with an annual growth rate of 44.7 per cent. The most important destinations for the UAE's non-oil exports were Switzerland, followed by India and Turkey.

“This reflects the success of our economic diversification plans and the world's confidence in UAE goods and services,” Dr Al Zeyoudi said.

The value of re-exports rose 14 per cent year-on-year to Dh389 billion.

UAE imports amounted to Dh969.3 billion during the first half of 2025, an increase of 22.5 per cent on the year before. Imports from the UAE's top 10 trade partners rose by 20.8 per cent, while imports from other nations grew by 24.3 per cent.

The UAE's broadening trade relations despite US President Donald Trump's push for tariffs denting prospects for global trade growth this year.

In April, the World Trade Organisation said tariffs and uncertainty that ensued has added “severe downside risks” to trade.

The WTO currently predicts global goods trade to fall by 0.2 per cent this year after forecasting growth of 2.7 per cent.