The UAE’s economic landscape is evolving rapidly, with women entrepreneurs making waves, Emirates Airlines investing billions in fleet expansion, and the nation’s GDP growth exceeding expectations.
Meanwhile, Saudi Arabia is making strategic economic moves, including a booming non-profit sector and tax incentives for businesses. Let’s break down these key developments shaping the Emirates market.
UAE’s economy grows 3.8%, fueled by non-oil sectors
The UAE economy continues its steady growth, expanding 3.8% year-on-year in the first nine months of 2024. This surge is driven largely by non-oil sectors, which grew 4.5% to AED 987bn ($268.8bn), reinforcing the country’s successful economic diversification strategy.
Key takeaways from the UAE’s economic growth:
- Non-oil activities now contribute 74.6% to the real GDP
- Oil-related activities account for 25.4%
- The government aims to push GDP to AED 3tn ($817bn) by the next decade
The UAE’s leadership, under President Sheikh Mohamed bin Zayed Al Nahyan, continues to focus on building an innovative economic model that aligns with global best practices. With initiatives that support foreign investments, SME growth, and economic flexibility, the country is well-positioned to achieve long-term sustainable growth.
Women in the UAE are driving business growth
In recent years, the UAE has become a powerhouse for entrepreneurship, and now, 84% of women in the country are considering starting their own businesses. This remarkable statistic, revealed in Mastercard’s latest research ahead of International Women’s Day 2025, underscores a growing trend—women are no longer just employees; they are becoming employers.
The UAE’s business landscape is rapidly evolving, with 49% of women identifying as entrepreneurs, almost matching men at 47%. Financial independence, flexibility, and social impact are driving this surge. These figures highlight a generational shift where younger women are embracing business ownership at an increasing rate.
The most popular sectors for women-led startups in the UAE include:
- Food & Beverage – 26%
- Online selling – 22%
- Cosmetics – 19%
However, challenges remain. 67% of women cite lack of funding as the biggest barrier to starting a business, compared to 59% of men. Access to mentorship and business planning resources is another hurdle, with 40% of female founders feeling unsure about where to start.
On the brighter side, UAE women are increasingly leveraging side hustles, with 56% engaged in freelance work, tutoring, or content creation, compared to 52% of men.
Technology is also playing a crucial role—75% of female entrepreneurs in the UAE use AI, with 85% reporting major cost or time savings. Yet, cybersecurity remains a concern, with 35% of women business owners targeted by fraudsters.
Despite these challenges, confidence in future growth is high. 98% of women business owners expect revenue to increase over the next five years, outpacing male entrepreneurs (85%). This optimism signals a strong future for female-led enterprises in the UAE’s booming economy.
Emirates invests $5bn to overcome aircraft delivery delays
Emirates, one of the world’s leading airlines, is taking a bold step with a $5 billion retrofit programme to counteract delays in aircraft deliveries. With Boeing’s new 777X models unlikely to arrive before 2025, Emirates President Tim Clark has made it clear: the airline isn’t waiting around. Instead, it’s upgrading its existing fleet, including 220 planes—a move that ensures its service remains top-notch despite supply chain issues.
The airline is retrofitting its aircraft with:
- New Business Class in a 1-2-1 configuration
- Refreshed cabin interiors for improved passenger experience
- Premium Economy seating in select planes
With aircraft manufacturers facing production challenges, proactive airlines like Emirates are securing their future by investing heavily in upgrades rather than slowing expansion plans.
While the Dubai International Airshow later this year might bring new aircraft orders, Clark hinted that deliveries may not happen until the 2030s. This signals a long-term growth strategy, with Emirates possibly placing additional orders to strengthen its fleet in the coming years.
Saudi Arabia’s non-profit sector surpasses SR100bn milestone
While the UAE is witnessing a surge in entrepreneurship, Saudi Arabia is making headlines with the rapid growth of its non-profit sector, which has now exceeded SR100 billion ($26.6 billion) for the first time.
Key contributors to this milestone include:
- Awqaf (endowments) – SR48bn ($12.8bn)
- Non-profit organisations – SR47bn ($12.5bn)
- Volunteering contributions – SR5bn ($1.3bn)
- Cooperative societies – SR2bn ($533m)
Saudi Arabia’s Vision 2030 had originally set a target for the non-profit sector to reach 5% of GDP by 2027, but the country is on track to achieve this goal two years ahead of schedule.
The sector’s rapid expansion is being driven by education, research, and healthcare, which have collectively generated over SR19bn ($5.1bn) in revenue. Additionally, health organisations accounted for the highest spending at SR15bn ($4bn) as government assets were converted into non-profit entities.
Interestingly, digital donation platforms played a crucial role, raising over SR15bn ($4bn) in 2024, with contributions coming from both small donors and major philanthropists. Engagement in the non-profit sector remains strong, with 23% of Saudi citizens volunteering and 47% making donations in 2024.
Saudi Arabia extends tax fine waiver until June 2025
Saudi Arabia’s Zakat, Tax and Customs Authority (ZATCA) has announced an extension of the tax fine waiver initiative until June 30, 2025. This initiative provides businesses with an opportunity to settle outstanding tax obligations without incurring penalties.
The exemption covers:
- Fines for late registration and late payment
- Late filing of tax returns
- VAT return corrections and e-invoicing violations
However, the initiative excludes penalties for tax evasion and fines already paid before the program’s start date. Businesses and individuals looking to take advantage of this waiver must ensure they register with ZATCA, submit all outstanding returns, and pay their dues before the deadline.
With Saudi Arabia pushing towards a more structured and compliant tax system, businesses operating in the region should act promptly to benefit from this financial relief.
Final thoughts
The UAE and Saudi Arabia are making bold economic strides, with women entrepreneurs driving new business trends, airlines adapting to supply challenges, and governments implementing strategic financial policies. With a strong focus on diversification, digital innovation, and sustainable growth, the region is well-positioned for long-term economic success.
For investors, business owners, and professionals, these shifts present significant opportunities—whether in startups, aviation, non-profits, or broader economic expansion. The question now is not whether the UAE’s economy will grow, but just how far and how fast it will rise.
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