The UAE economy grew by 4.3% in the fourth quarter of 2023

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Preliminary government data showed that the UAE economy grew 4.3% year-on-year in the fourth quarter of 2023, with non-oil economic growth well outpacing overall GDP.

According to data from the Federal Center for Competitiveness and Statistics, GDP in the non-oil sector increased by 6.7 percent over the same period.

The fastest growing sectors included financial and insurance activities, transport and storage, real estate and construction.

The Gulf state has also stepped up investment in sectors such as renewable energy and advanced technologies.

The United Arab Emirates, one of the world’s largest oil exporters, has accelerated plans to diversify its economy away from hydrocarbons and attract foreign investment, with non-oil GDP now accounting for more than 70% of the total contribution to growth.

According to Reuters calculations, real GDP growth in 2023 is estimated at 3.6%, with non-oil GDP growth at 6.2%. amid a decline in oil activity last year due to lower production and prices, which impacted all regional oil and gas producers.

The International Monetary Fund (IMF) said in a recent statement that economic growth in the UAE is broad-based and driven by solid domestic activity in sectors such as tourism, construction and financial services.

The IMF raised its initial GDP growth forecast in 2024 to 4%. from 3.5 percent forecast in the last publication Regional economic prospects report published in April.

A Reuters poll of economists in April also projected the UAE’s GDP growth at 4 percent in 2024, the fastest among Gulf countries.

“The UAE economy has demonstrated remarkable resilience both to poor external conditions and to significantly higher interest rates in 2023.” Emirates NBD analysts said in a research note on Thursday.

Read: UAE economy will grow by 4% in 2024, says IMF