UAE's Ascendant Economy: Skyscrapers, Soaring Property, and Banking Brilliance in H1 2025

The United Arab Emirates continues to capture global attention, not just for its audacious architectural feats but also for the remarkable resilience and dynamism of its economy. The first half of 2025 has cemented the nation's position as a vibrant hub of development, with Dubai reaching unprecedented heights in its skyline and Abu Dhabi's real estate market demonstrating exceptional growth. Complementing these physical and economic transformations, the banking sector, as exemplified by United Arab Bank's impressive H1 2025 results, showcases the financial robustness underpinning the UAE's grand ambitions.

Dubai: A Sky-High Statement of Global Leadership

Dubai's skyline is an ever-evolving testament to ambition and innovation. In a significant milestone for H1 2025, the UAE has officially surpassed the United States, securing the second spot globally for the number of "supertall" skyscrapers – those towering over 300 meters. The Council on Tall Buildings and Urban Habitat (CTBUH) confirms that the UAE now boasts over 30 completed supertall structures, a rapid vertical ascent that underscores a deeper narrative of urban ambition and visionary transformation. Dubai, specifically, is now ranked fourth worldwide among cities with the most completed buildings over 150 meters, a staggering 250+ skyscrapers. This architectural prowess is not merely about height; it's a strategic expression of economic diversification, a magnet for tourism, and a testament to the city's dynamic real estate market. These gleaming towers, concentrated along Sheikh Zayed Road, the Marina, and Downtown Dubai, are more than just buildings; they are symbols of national identity and global relevance.

Abu Dhabi: A Resilient Realty Market Delivering Strong Returns

While Dubai reaches for the clouds, Abu Dhabi's property market on the ground is demonstrating exceptional resilience and impressive growth in the first half of 2025. According to Bayut, the UAE’s leading property portal, listing prices for apartments in the affordable sector have surged by up to 7 percent, and budget-friendly villas have seen increases of as much as 5 percent. This robust performance is establishing Abu Dhabi as one of the region’s most attractive investment destinations.

The market has seen a diversified interest: budget-conscious buyers are focusing on areas like Al Reef, Al Ghadeer, Khalifa City, and Al Shamkha, while mid-tier investors are favoring Al Reem Island, Masdar City, Al Raha Gardens, and Al Samha, with some mid-tier villas in Al Samha experiencing an impressive 26.7 percent price increase. Luxury segments, particularly Yas Island and Saadiyat Island, remain highly attractive, with luxury apartment prices surging by up to 17 percent, notably bolstered by the announcement of Disneyland Abu Dhabi. This indicates a clear shift of investor interest towards these prime island communities.

Furthermore, Abu Dhabi's property market offers lucrative rental yields, with affordable apartments in Al Reef delivering 9.33 percent and mid-tier apartments in Masdar City offering 8.41 percent. The off-plan market is also booming, with significant interest across all segments, from affordable apartments in Al Reeman 1 and Bloom Living to luxury villas in Nawayef West and Saadiyat Lagoons. This robust rental demand is driven by consistent population growth and the need for quality accommodation for expatriates, reinforcing the stability and attractiveness of Abu Dhabi’s real estate.

United Arab Bank's Stellar Financial Performance: A Pillar of Economic Strength

Underpinning these impressive real estate narratives is a thriving financial sector, exemplified by the outstanding performance of United Arab Bank (UAB) in the first half of 2025. UAB announced a remarkable 50 percent year-on-year increase in net profit, reaching Dh208 million, compared to Dh139 million in H1 2024. This significant growth is reflective of a broader positive trend within the UAE's banking sector, which has seen strong starts to 2025 driven by improved asset quality, enhanced cost efficiency, and rising non-interest income.

UAB's total income also saw a substantial 24 percent year-on-year increase to Dh374 million, propelled by a 13 percent rise in net interest income and a striking 70 percent surge in non-interest income. The bank's total assets grew by 11 percent from December 2024, reaching Dh23.9 billion, fueled by a 16 percent growth in loans, advances, and Islamic financing, and a 10 percent growth in investments.

Crucially, UAB has maintained its focus on asset quality, with the non-performing loans (NPL) ratio dropping below 3 percent to an impressive 2.2 percent, and provision coverage increasing to 148 percent. The bank’s capital position remains robust, with a Common Equity Tier 1 (CET1) of 12.1 percent and a total capital adequacy ratio (CAR) of 16.3 percent, comfortably exceeding regulatory thresholds. Its strong liquidity profile, reflected in an advances to stable resources ratio of 80 percent and an eligible liquid asset ratio of 17 percent, further enhances its resilience.

Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of UAB, emphasized that the exceptional financial performance "underscores the effectiveness of our strategic vision and the strength of our governance framework." Shirish Bhide, CEO of UAB, added that the results reflect "robust operational performance and the growing impact of our transformation agenda," highlighting the bank’s unwavering focus on customer value, efficiency, and prudent risk-taking. The recent affirmations of UAB's credit ratings by Fitch (BBB+/Stable) and Moody’s (Baa3/Positive) further validate its financial strength and positive outlook. The ongoing Rights Issue, aiming to enhance capital by up to Dh1.03 billion, will further strengthen the bank's resilience and support future asset growth.

In essence, the UAE's economic narrative in H1 2025 is one of synergistic growth. The country’s ambitious urban development, epitomized by Dubai’s sky-high achievements, is matched by the tangible growth and resilience observed in Abu Dhabi's diverse property market. This formidable progress is, in turn, solidly backed by a thriving financial sector, with institutions like United Arab Bank demonstrating exceptional profitability and robust financial health. The UAE continues to showcase a dynamic and attractive environment for investment, talent, and sustainable development on the global stage.