UAE non-oil sector grows 6.7 percent in Q4 2023: OPEC

The UAE continued to show growth in non-oil sectors, recording 6.7% growth in the fourth quarter of 2023, up from 5.8% in the third quarter of 2023, according to the latest data from the Organization of the Petroleum Exporting Countries Oil (OPEC).

In its June 2024 Monthly Oil Market Report (MOMR), OPEC also revealed that the construction sector’s growth rate accelerated to 8.4% in the fourth quarter of 2023, up from 8% in the previous quarter. Meanwhile, overall growth reached 6.4 percent from 2.6 percent in the same period.

Key services segments in the UAE’s non-oil sector also recorded growth, with financial and insurance activities growing by 17.6% year-on-year in the fourth quarter of 2023, compared to 11.8% in the third quarter of 2023.

Last year, the country’s tourism sector also saw exponential growth. Data from Dubai’s Department of Economy and Tourism show that 2023 was a record year for tourism in the emirate. The number of foreign visitors increased by 19.4% compared to 2022, exceeding pre-pandemic levels.

Additionally, early indicators for 2024 point to another strong year for Dubai’s tourism sector, with visitor numbers registering an 11 percent annual growth in the first quarter alone.

Read | The global economy will stabilize for the first time in three years and will grow by 2.6% in 2024: World Bank

The OPEC report also cited the S&P Global PMI for the United Arab Emirates, which indicated that this continued growth, particularly in the manufacturing sector, is driven by a 51% increase in the number of new industrial licenses issued in 2023.

For more economic news, click here.