The UAE: Fueling Global Growth with Economic Might, Grand Visions, and Luxury Living in H1 2025

The United Arab Emirates is proving to be an economic marvel, demonstrating robust growth, strategic foresight, and an unwavering commitment to becoming a global leader in various sectors. The first half of 2025 has unveiled compelling data that solidifies the UAE's position as a dynamic powerhouse, attracting wealth, fostering innovation, and continually redefining urban living. This progress is not only evident in its booming real estate market and strong financial institutions but is also underscored by impressive national GDP growth projections and the ambitious projects of leading developers like Azizi.

GCC's Economic Surge: Oil, Non-Oil, and Macro-Financial Strength

The broader Gulf Cooperation Council (GCC) region is poised for a significant economic upswing, with aggregated real GDP growth expected to jump from 2 percent in 2024 to a robust 3.6 percent in 2025. This surge is attributed to an anticipated increase in oil production, as well as the continued expansion of non-oil sectors. Dr. Garbis Iradian, Chief Economist for MENA at the Institute of International Finance (IIF), highlights that the direct impact of higher global tariffs on the GCC is limited, given the exemption of oil and gas exports and the relatively small scale of non-hydrocarbon exports.

Growth will be further bolstered by ongoing strategic investments in logistics, manufacturing, renewable energy, and tourism, while inflation is projected to remain low. Non-oil real GDP growth is expected to stay strong at 3.9 percent, driven by extensive infrastructure projects and aggressive diversification efforts away from oil dependence. The Central Bank of the UAE echoes this optimism, projecting 3.2 percent and 4.3 percent real GDP growth for 2025 and 2026, respectively.

OPEC oil output, a key driver, saw an increase in June, led by Saudi Arabia following an OPEC+ agreement to raise production, with OPEC pumping 27.02 million barrels per day. The IIF notes that macro-financial risks in the GCC remain low due to ample foreign exchange reserves, low debt levels, and ongoing reforms. Banking systems are sound, characterized by strong asset quality, ample capital and liquidity ratios, and sustained profitability. While a potential narrowing of the aggregated current account surplus and widening fiscal deficits in some GCC nations due to lower oil prices are noted, the overall outlook remains highly positive.

Furthermore, non-resident private capital inflows to the GCC economies are expected to surge, reaching an impressive $202 billion in 2025 and $217 billion in 2026. This upswing, primarily driven by continued growth in FDI in the UAE and portfolio debt flows in Saudi Arabia, underscores the region's appeal as a stable political environment with an improving business climate and strong economic fundamentals.

Dubai's Vertical Grandeur and Global Attractiveness

Dubai continues to stand as a beacon of architectural ambition, embodying the UAE's relentless pursuit of greatness. In H1 2025, the UAE surpassed the United States, securing the second global spot for "supertall" skyscrapers (over 300 meters), boasting over 30 completed structures. Dubai alone ranks fourth globally for cities with the most buildings exceeding 150 meters, a staggering 250+ skyscrapers. These iconic structures, including the world-renowned Burj Khalifa, serve as powerful symbols of the city's economic diversification, tourism magnetism, and dynamic real estate market. The concentration of these architectural marvels along Sheikh Zayed Road, the Marina, and Downtown Dubai creates a vibrant urban mosaic that reflects a blend of cultures, technologies, and economic power.

Abu Dhabi's Resilient Property Market and Lucrative Returns

Complementing Dubai's sky-high achievements, Abu Dhabi's property market demonstrated exceptional resilience and growth in the first half of 2025. Listing prices for affordable apartments rose by up to 7 percent, and budget-friendly villas by as much as 5 percent, solidifying the emirate as a highly attractive investment destination. Areas like Al Reef and Al Ghadeer are offering lucrative rental yields, reaching up to 9.33 percent for apartments. The luxury segment, particularly Yas Island and Saadiyat Island, has seen significant appreciation, with luxury apartment prices surging by up to 17 percent, undoubtedly boosted by the highly anticipated announcement of Disneyland Abu Dhabi. The thriving off-plan market, driven by consistent population growth and expatriate demand, further adds to the stability and lucrative nature of Abu Dhabi’s real estate.

Azizi Developments: Crafting Mega-Communities and Lifestyle Destinations

A key player in shaping the UAE's urban future is Azizi Developments. The company recently announced the launch of Milan Heights, a new lagoon-facing residential enclave within its colossal Dh75 billion Azizi Milan project. This landmark development is set to cover an expansive 40 million square feet in GFA, making it one of the largest mixed-use communities in the UAE. Designed to accommodate a population of 144,000, with 800 hotel keys, Azizi Milan's strategic location on Sheikh Mohammed Bin Zayed Road ensures unparalleled accessibility.

Milan Heights will offer a diverse range of studios, one-, two-, and three-bedroom apartments, complemented by extensive amenities including pools, a modern cinema, a fully equipped fitness center, and over 20,000 square meters of retail space. Farhad Azizi, Group CEO of Azizi group, emphasized that Milan Heights embodies their vision of creating "human-centric spaces that are elegant yet practical, seamlessly woven into a master plan shaped by nature, connectivity, and thoughtful urban design." Notably, Azizi Milan is also poised to become the region's fashion capital, featuring pedestrian-only fashion streets dedicated to various realms of fashion. This ambitious project, following the success of Azizi’s Riviera and Azizi Venice, underscores the developer's role as a master planner overseeing comprehensive infrastructure, ensuring integrated and vibrant communities.

The first half of 2025 paints a clear picture of the UAE's multifaceted economic strength. From soaring GDP growth and significant capital inflows to record-breaking urban development and innovative real estate projects, the nation is not just witnessing growth; it is actively shaping a future defined by prosperity, ambition, and global leadership.