Industry Trends in UAE
The UAE’s non-oil economy is now the dominant growth engine, contributing around three-quarters of the country’s GDP in 2024, a clear sign that diversification efforts are working.
The World Bank predicts real GDP growth of around 4.6 per cent in 2025, with non-oil businesses leading the way.
Monitoring industry trends in the UAE enables founders and investors to identify the optimal time to enter the market, align with national priorities, and focus resources where momentum is strongest. Agricultural technology and aerospace technology, with verified statistics, forecasts and investment opportunities.
The 10 Most Important Industry Trends In The UAE In 2025
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Renewable energy and clean technology
Thanks to large-scale solar projects such as the Mohammed bin Rashid Al Maktoum Solar Park and Noor Abu Dhabi, the UAE boasts the most extensive installed renewable energy capacity in the Middle East and North Africa, at approximately 6.3 GW.
The UAE Energy Strategy 2050 aims to triple the contribution of renewable energy sources by 2030. Investments of AED 150–200 billion (USD 40.8–54.4 billion) are planned to meet the increasing demand.
Business Opportunities: Companies can invest in solar parks, wind projects, battery storage, and hydrogen initiatives. Green infrastructure development is strongly encouraged, and private partnerships are encouraged in Masdar City and beyond.
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Fintech and digital finance
Fintech remains the UAE’s biggest risk magnet, attracting around 32 per cent of all venture capital in the first half of 2024, according to the UAE Fintech Report 2024.
The Central Bank’s Financial Infrastructure Transformation (FIT) program is supporting a cash-strapped economy and the upcoming launch of the digital dirham. Consumer adoption is high, with 88% of UAE residents using at least one new payment method.
Business opportunities: Both startups and large companies can create digital wallets and payment gateways, including Insurtech products, blockchain-based solutions, or challenge traditional banking services. With consumers ready and regulators supporting them, fintech offers one of the clearest growth opportunities in the UAE.
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E-commerce and digital economy
The UAE e-commerce market exceeded AED 18.4 billion (USD 5 billion) in 2021, while current market indicators suggest that it will reach approximately AED 40.6 billion (USD 11.05 billion) by 2025, with a compound annual growth rate (CAGR) of roughly 12 per cent until 2030.
Internet penetration in the UAE is nearly 99 per cent, enabling the rapid implementation of online commerce.
Business opportunities: Entrepreneurs can launch online retail platforms, invest in delivery services, or develop niche e-commerce offerings. The growth in digital payments, social commerce, and high-speed commerce creates many entry points.
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Artificial intelligence and advanced technology
In April 2024, Microsoft invested AED 5.5 billion (US$1.5 billion) in Abu Dhabi-based G42 to accelerate the development of AI infrastructure and skills, further strengthening the UAE’s AI ambitions.
Government strategies view AI as a significant part of future (non-oil) growth, and Dubai’s mobility agenda aims to have 25 per cent of transport be autonomous by 2030.
Business opportunities: Companies can develop AI solutions for the finance, healthcare, logistics and mobility sectors.
Investors can invest in cloud infrastructure, data centres, or AI hardware projects, as the UAE positions itself as a global testing ground for cutting-edge technologies.
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Healthcare and pharmaceuticals
The UAE is aggressively positioning itself as a leading country in medical tourism thanks to strategic innovations and increasing demand.
Market analysts predict that the UAE medical tourism market will grow at a compound annual growth rate (CAGR) of 8.7% between 2024 and 2033, reaching a value of $ 100 billion. AED 8.4 billion (USD 2.3 billion).
Meanwhile, the global medical tourism market is expected to grow from AED 172 billion (USD 47 billion) in 2022 to AED 407.7 billion (USD 111 billion) by 2029, indicating a rise in regional demand.
The UAE’s healthcare strategy encompasses innovation-focused platforms, such as the Dubai Health Experience (DXH), as well as national plans, including the Emirates Health Services Innovation Strategy 2023–2026 and the National Wellness Strategy 2031, all of which support the growth of medical tourism within a modern healthcare framework.
Business opportunities: Investors can establish platforms for medical tourism, hospital-based clinics, or wellness retreats.
Opportunities also exist in free zones, such as Dubai Healthcare City, in areas including telemedicine, personalised care packages, and integrated healthcare and travel services.
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Tourism and Hospitality
Dubai welcomed 9.88 million international visitors in the first half of 2025, representing a 6%% increase compared to the same period in the previous year.
Hotels also showed strong performance, with average occupancy rising to around 80.6 per cent and 22.24 million overnight stays, an increase of 4 per cent compared to the previous year.
The UAE Tourism Strategy 2031 targets 40 million hotel guests and aims to contribute approximately AED 450 billion (US$122.5 billion) to the country’s GDP.
Business Opportunity: As visitor numbers increase, so does the demand for luxury hotels, lifestyle resorts, experience-focused properties, and hotel and event solutions.
Travel technology companies and platform-based experience curators can serve a visitor audience those values both quantity and quality.
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Real estate and construction industry
In the first half of 2025, transactions worth AED 431 billion (approximately USD 117.3 billion) were recorded, representing a 25% increase compared to the previous year. The number of transactions rose to 125,538, reflecting demand for residential and commercial properties.
Investment activity was also intense, with more than 94,700 investors completing deals worth AED 326 billion (USD 88.8 billion), a 39 per cent increase compared to the first half of 2024. Dubai’s Department of Real Estate recorded 1.3 million real estate transactions, including sales, rentals and transfers.
Business Opportunities: Developers can focus on luxury towers, mixed-use residential projects and industrial complexes. Given the population growth, demand for Golden Visas, and global interest, the real estate sector remains one of the most profitable sectors in the UAE.
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Agricultural technology and food safety
The UAE’s agricultural market is projected to be worth AED 12.1 billion (approximately USD 3.3 billion) by 2025.
It is expected to reach AED 15 billion (USD 4.1 billion) by 2030, with an average annual growth rate of 4.5%. Despite this, the country imports 85 to 90 per cent of its food, which drives economic growth, there is an urgent need for vertical farming, aquaculture, and controlled environments.
Innovations are evolving rapidly. AgriNext 2025 will focus on AI-assisted vertical farming, robotics in crop production, and blockchain-based food traceability. Initiatives such as Food Tech Valley and incubators are fostering the growth of startups in this sector.
Business Opportunities: Investors can invest in vertical farming, hydroponics, smart irrigation, and cold chain logistics. Agritech demonstrates how the UAE is innovating in both forward-looking sectors and the fundamentals of food security, thereby building a bridge to long-term resilience.
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Transportation and logistics
The UAE’s non-oil foreign trade increased to AED 1.7 trillion (USD 462.8 billion) in the first half of 2025, representing a 24% rise from the previous year and reinforcing its position as a leading global trade and logistics hub.
Meanwhile, Etihad Rail, now fully operational in all seven emirates, is enabling a significant increase in freight traffic. With the expanded fleet, the network is expected to achieve an annual freight capacity of 60 million tonnes by 2030, facilitating the smooth movement of goods and enhancing trade infrastructure.
Business opportunities: Logistics providers can capitalise on this development by expanding their services in freight forwarding, warehousing, and cold chain. Technology companies can leverage AI, IoT, and blockchain to increase transparency and efficiency in supply chains.
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Aerospace and aviation industry
The UAE has invested around AED 40 billion (US$10.9 billion) in the space sector, demonstrating the rapid growth of its ecosystem.
A key part of this strategy is the Emirates Mission to the Asteroid Belt, scheduled to launch in 2028, which includes multiple asteroid flybys and a landing between 2034 and 2035. The project is supported by the UAE Space Fund, a nearly AED 3.67 billion (US$1 billion) initiative designed to accelerate innovation and build local Capacity.
Business opportunities: Companies can join the ecosystem through satellite development, aerospace engineering, or research and development partnerships. The Space Economic Zone Program offers incentives and infrastructure to support startups.
Industry Trends in the United Arab Emirates 2025: Key Figures at a Glance
To summarise the opportunities across all ten sectors, here is a snapshot of their market size, growth prospects, and location potential by 2025.
Sector Market size 2025 Growth prospects business opportunity Installation instructions
- Renewable energy: AED 150–200 billion (USD 40.8–54.4 billion). Capacity tripled by 2030. Solar energy, hydrogen, battery storage, and Masdar City Free Trade Zone support clean energy businesses
- Fintech received 32% of venture capital funding in the first half of 2024. The fastest funded sector by venture capitalists is Digital wallets, challenger banks, DIFC/ADGM for financial licenses
- E-commerce AED 40.6 billion (USD 11.05 billion) by 2025, ~12% annual growth rate until 2030. Online shopping, logistics, and payments are available in Dubai Commercial City and on the mainland.
- Microsoft invests AED 5.5 billion (approximately USD 1.5 billion). A Growing share of GDP: AI for finance, healthcare, and mobility. Dubai Internet City is a hub for tech startups
- Healthcare medical tourism of AED 8.4 billion (USD 2.3 billion) by 2033, 8.7% annual growth rate. Clinics, biotechnology, and telemedicine, Dubai Healthcare City offers specialist licenses
- Tourism Goal: 40 million hotel guests by 2031 +6 yearly visitor % growth. Hotels, restaurants, and events: DTCM permits are required for the hotel and restaurant industry
- Property AED 431 billion (USD 117.3 billion) in the first half of 2025 +25% transactions compared to the previous year. Luxury towers, mixed-use DLD and RERA approvals required
- Logistics Trade volume of AED 1.7 trillion (USD 462.8 billion) in the first half of 2025 +24% growth Shipping, storage JAFZA and KIZAD are strong logistics centres
- Agricultural technology AED 12.1 billion (USD 3.3 billion) by 2025, 4.5% annual growth rate until 2030. Vertical farming, cold chain, and Food Tech Valley incubators foster growth
- Room AED 40 billion (USD 10.9 billion) invested EMA mission 2028–2035 Satellites, research and development in aerospace Spatial economic zone offers incentives
Licensing and Installation: How G12 Simplifies Market Entry
To gain a foothold in the UAE, it’s not enough to choose a sector. Investors and entrepreneurs must navigate licensing regulations, ownership structures, and visa requirements that vary by industry.
For example, fintech companies often set up in the DIFC or ADGM, renewable energy companies focus on Masdar City, and healthcare providers typically choose Dubai Healthcare City.
Another critical decision is choosing between a mainland structure and a free zone structure. Mainland companies offer direct access to the UAE market, while free zones often provide 100% foreign ownership, tax benefits, and simplified regulations. The proper structure depends on your business operations, visa requirements and growth goals.
Compliance is also essential. Companies must register for corporate tax, file UBO returns, and meet ESR requirements. They must also obtain the appropriate business licenses and visas.
The following table shows the most common licenses, recommended jurisdictions, and how G12 simplifies the process.
Sector General license required, recommended jurisdiction, How G12 helps
- Renewable energy Energy/Industrial Permit Masdar City Includes permits, compliance and visas.
- Fintech Financial Services License DIFC / ADGM Assists with official permits and admissions.
- Healthcare License for a healthcare facility, Dubai Healthcare City, Works with DHA/MOH and handles medical visas
- E-commerce/business license, Dubai CommerCity or DED Mainland: Secures merchant permissions and configures payment gateways.
- Logistics/Trade License JAFZA / KIZAD Assists with customs codes and warehouse permits.
- Property or Building Permit: DLD / RERA. Supports investor visa approval and structuring.
- AI and technology Technology license Dubai Internet City Establishment, protection of intellectual property rights, personal visas
- Agricultural technology, agricultural innovation permits, and Food Tech Valley assist with building permits and the registration of startup companies.
- Room Flight/R&D license Spatial economic zone Facilitates startups, partnerships and incentives.
- G12 handles the entire process, from permit application and registration to visa and PRO services, ensuring your business is structured correctly from day one.
Enter the United Arab Emirates with G12
The UAE is one of the world’s fastest-growing economic centres, offering opportunities in renewable energy, fintech, healthcare, tourism, logistics, and more. However, turning these opportunities into success requires the proper foundation: an industry-specific legal structure, a compatible trade license, and smooth handling of visa and PRO requirements.
It is where G12 makes the difference. Our specialists guide you through every stage of the company formation process in Dubai and the rest of the UAE, from free zone and mainland registration to ongoing support for compliance with rules and regulations.
With our advice, you can focus on your growth while we ensure your business is built on a solid foundation.
Book A Free Consultation With G12 Today and receive a customised plan tailored to your industry, goals, and long-term vision in the UAE.
Frequently Asked Questions (FAQ)
Which tourist destinations should investors pay attention to?
The UAE’s tourism strategy for 2031 aims to attract 40 million hotel guests and contribute approximately AED 450 billion (USD 122.5 billion) to the country’s GDP (UAE Government Portal).
Does the UAE permit 100% foreign ownership in these sectors?
Yes. Most free zones offer 100% foreign ownership, and many mainland businesses were liberalised in 2021 under the amended Companies Act, which removed the requirement for local sponsorship for dozens of sectors.
How does the Golden Visa fit into these industry trends?
The Golden Visa program offers a ten-year residency to investors, entrepreneurs, and professionals in fields such as healthcare, artificial intelligence (AI), and renewable energy. It has encouraged foreign professionals to settle in the UAE for more extended periods.
Are there tax benefits associated with investing in these sectors?
Yes. The UAE’s corporate tax rate is 9%, but many free zones offer tax exemptions, zero tariffs, and full repatriation of profits for companies in fast-growing industries.
What role do free trade zones play in the growth of the sector?
Free zones, such as Masdar City (renewable energy), DIFC (finance), Dubai Internet City (technology), and Dubai Healthcare City (medical services), offer industry-specific ecosystems, licensing, and regulatory benefits tailored to their respective sectors.
Which sectors will grow the fastest in 2025?
Fintech, e-commerce, and renewable energy are among the fastest-growing sectors, with expected double-digit growth rates. These sectors are also receiving the most interest from venture capitalists and government support.
What permits are required to access these sectors?
The types of licenses depend on the specific activity and jurisdiction. For example, healthcare companies require approval from health authorities, while the DIFC or ADGM often regulates fintech companies. G12 identifies the appropriate trading license and manages the application from start to finish.
How long does it take to start a business in the United Arab Emirates?
Timelines vary by industry and jurisdiction. A simple company in a free zone can receive a license within a few days, whereas regulated businesses, such as fintech or healthcare, can take several weeks. G12 guides clients through each phase to ensure the fastest possible launch.
Do investors have to be physically present in the UAE to start a business?
In many cases, not. Several free trade zones allow for remote company formation. However, opening a business account or obtaining a visa may require an in-person visit. G12 helps clients meet these requirements both in-country and remotely.