The UAE projects 5% overall economic growth in 2026, with non-oil sectors forecast to expand 5.5%, reinforcing diversification, industrial strength and digital economy momentum….reports Asian Lite News
The UAE is heading into this year with renewed economic momentum, as ministers project robust growth across key sectors, underpinned by industrial expansion, digital innovation and strengthened global supply chains.
Speaking on the sidelines of the Investopia Partners event in Abu Dhabi, Abdulla bin Touq Al Marri, Minister of Economy and Tourism, said the national economy is expected to grow by more than five per cent this year, with non-oil sectors expanding by over 5.5 per cent and accounting for 78 per cent of GDP.
Al Marri attributed the acceleration to a clear leadership vision, advanced legislation and a globally competitive business environment. Over the past few years, more than 40 laws and regulations governing the business ecosystem have been updated, easing procedures and reinforcing investor confidence. The overhaul of the Commercial Companies Law has been particularly significant in enhancing ease of doing business and strengthening the UAE’s appeal as a global base for family businesses.
The number of companies registered in the national economic register has more than doubled in five years, rising from around 650,000 to over 1.45 million. The minister said the figure is expected to reach two million by 2031, underscoring the country’s growing attractiveness to international investors and entrepreneurs.
Industrial exports hit record Dh262bn
Industrial performance has emerged as a central pillar of this growth story. The UAE’s industrial exports reached a record AED262 billion in 2025, marking a 25 per cent increase on the previous year and doubling since the establishment of the Ministry of Industry and Advanced Technology in 2020.
Exports from medium- and high-technology industries climbed to AED92 billion, representing 42 per cent year-on-year growth and surpassing the AED90 billion target set for 2031 six years ahead of schedule. Officials say this signals an accelerated shift towards advanced manufacturing and higher value-added production.
His Highness Sheikh Mohammed bin Rashid Al Maktoum described a strong industrial base as the backbone of a competitive national economy, noting that exports of advanced technologies alone have reached AED90 billion. He said the integration between government legislation and the private sector, supported by digital infrastructure and a robust financial system, has positioned the UAE as a regional leader in industrial exports, with even stronger figures expected in 2026.
Dr Sultan Ahmed Al Jaber said the results reflect the impact of the National Strategy for Industry and Advanced Technology and the “Make it in the Emirates” initiative. Since 2020, industrial exports have grown by 100 per cent, with policies focused on strengthening supply chains, boosting industrial self-sufficiency and enhancing competitiveness in priority sectors.
Programmes such as the National In-Country Value initiative have redirected spending into the domestic economy, raising local content in supply chains and increasing the industrial sector’s contribution to GDP.
Digital platforms power SMEs and jobs
The digital economy is also playing an increasingly influential role. TikTok-enabled small and medium-sized businesses contributed AED1.1 billion to the UAE economy and supported more than 7,000 jobs, according to a new economic impact report unveiled at the World Government Summit 2026.
The report, developed with Redseer Strategy Consultants, found that more than 10,000 SMEs launched their businesses because of the platform, while over 70,000 local SMEs are currently active on it. One in four creators cited TikTok as the primary reason they began producing content, with many turning part-time activity into sustainable careers.
Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, said the UAE’s forward-looking digital framework has enabled global platforms to contribute meaningfully to economic diversification and human capital development. The findings also indicated that 10 per cent of tourist spending is influenced by TikTok, highlighting its growing role in destination discovery and tourism promotion.
Supply chains and food security
Beyond industry and digital services, the UAE continues to reinforce its role as a global logistics and food supply hub. Ranked as the top regional performer and third globally in the Agility Emerging Markets Logistics Index, the country leverages its strategic location and world-class infrastructure to anchor regional food security.
Jebel Ali Port handles approximately 73 per cent of the UAE’s food and beverage trade by value and connects to more than 150 ports worldwide. The upcoming Dubai Food District, unveiled by DP World and scheduled to launch its first phase in 2027, will add temperature-controlled warehousing, processing facilities and digital solutions to further integrate supply chains.
Through initiatives such as the Food Cluster Economy framework, the Ministry of Economy and Tourism is encouraging private sector leadership in strengthening farms, factories, logistics and retail networks. As global supply chains face volatility and climate-related pressures, officials say the UAE’s stable regulatory environment and advanced infrastructure provide a reliable platform for trade and investment.
