CBRE Middle East, the global leader in commercial real estate services, released its latest UAE Industrial Market Review 2025, revealing how the country’s industrial sector is emerging as a cornerstone of economic diversification and a magnet for global investment. Despite global trade uncertainty, the UAE continues to strengthen its position as a regional hub for manufacturing and logistics, supported by strategic reforms, advanced infrastructure, and a surge in institutional capital.
The report shows that the UAE economy remains firmly on a growth trajectory, with GDP forecast to rise by 4.9% in 2025, up from 3.8% last year. This expansion is driven not only by a rebound in oil production but by the sustained momentum of non-oil sectors, including trade, manufacturing, and advanced technology. Non-oil GDP is expected to grow by 4.7%, underpinned by record-high foreign trade exceeding AED 3 trillion and the signing of 27 Comprehensive Economic Partnership Agreements (CEPAs), which are opening new doors to global markets.
Manufacturing has become a central pillar of this transformation. The sector now accounts for 15% of the UAE’s GDP, with Abu Dhabi contributing close to 10% of its total output and Dubai recording a 3.3% year-on-year increase. Northern Emirates such as Ras Al Khaimah and Sharjah also play a vital role, with manufacturing representing up to 30% and 17% of their respective economies. These gains reflect the success of national initiatives like the UAE Industrial Strategy 2030 and programs such as “Make It In The Emirates,” which aim to create a sustainable and competitive industrial ecosystem.
Economic zones are at the heart of this growth story, with Khalifa Economic Zones Abu Dhabi (KEZAD) leading the charge. KEZAD accounts for 55% of the UAE’s total industrial area and has become a focal point for large-scale manufacturing and logistics projects. Recent land agreements spanning over 574,000 sqm in KEZAD represent investments exceeding AED 1 billion and are expected to generate more than 2,300 jobs. KEZAD’s integrated ecosystem, competitive energy tariffs, and sector-specific clusters—such as metals and food processing—continue to attract global players seeking cost-efficient and well-connected bases.
This industrial momentum is mirrored by a surge in foreign direct investment. In the first half of 2025 alone, the UAE attracted nearly AED 22 billion in Greenfield FDI across more than 700 projects, with Dubai leading in logistics and Abu Dhabi in manufacturing. Such inflows underscore the country’s appeal to global investors, supported by advanced infrastructure, competitive energy costs, and pro-business policies that continue to set the UAE apart on the world stage.
Institutional capital is now reshaping the industrial landscape in unprecedented ways. The report cites landmark transactions such as the launch of the Gulf Logistics Infrastructure Development Enterprise (GLIDE), a US$5 billion platform formed by Blackstone and Abu Dhabi-based Lunate to invest in Grade-A logistics assets across the GCC. Similarly, SC Capital Partners and CapitaLand Investment have introduced the SC GCC Real Estate Industrial Development Fund, with its inaugural project in Ras Al Khaimah Economic Zone (RAKEZ). These developments signal a new era of large-scale investment and strategic partnerships that will define the future of the UAE’s industrial sector.
