UAE's Non-Oil Trade Surpasses $1 Trillion, Narrows Gap with Saudi Arabia in Economic Diversification Race
The United Arab Emirates' drive to reduce its reliance on fossil fuels has reached a historic milestone, with the value of its non-oil foreign trade crossing the $1 trillion threshold for the first time. The announcement, made by UAE Prime Minister and Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum, underscores the accelerating pace of economic diversification in the Gulf.
Official figures reveal a striking 45% surge in UAE non-oil exports last year, reaching 813 billion dirhams ($221 billion). This propelled the nation's total non-oil trade—encompassing exports, imports, and re-exports—to a record 3.8 trillion dirhams (over $1.03 trillion). The performance signals a significant narrowing of the gap with neighboring Saudi Arabia, a nation with an economy roughly twice the size. Saudi non-oil exports for the first eleven months of 2025 stood at 1 trillion riyals ($284 billion).
Both nations are engaged in a high-stakes race to future-proof their economies, channeling massive investments into sectors like artificial intelligence, tourism, advanced logistics, and renewable energy. The UAE's growth aligns with strong regional momentum; preliminary Saudi data shows its GDP expanded by 4.9% in Q4 2025, the fastest rate since 2022. The UAE Central Bank, meanwhile, has projected 5% growth for the Emirates in 2025.
Analyst Perspectives:
"This isn't just a number—it's a validation of a decade-long strategic pivot," says Dr. Lena Fawaz, an economist at the Gulf Policy Institute. "The UAE's logistics hubs and business-friendly reforms are creating a re-export powerhouse, complementing Saudi Arabia's focus on domestic industrial capacity. The region is rewriting its economic narrative."
"Let's not get carried away," counters Markus Thiel, a veteran emerging markets fund manager. "A large portion of this 'non-oil' trade is still deeply entangled with the energy economy—petrochemicals, refined products, and services supporting oil infrastructure. True diversification into high-value, knowledge-based sectors remains a distant, uphill battle for both countries."
"The speed is what's breathtaking," observes Rashid Al-Nuaimi, a Dubai-based entrepreneur in the tech sector. "The competition is healthy. It pushes innovation, attracts global talent, and forces bureaucratic modernization. A rising tide lifts all boats in the GCC."