Non-Oil Sectors Driving UAE’s GDP Growth – News

The United Arab Emirates ranks as the world’s fifth-largest economy in terms of real GDP growth rate

Published: Thu May 30, 2024, 10:02 p.m

Data on Thursday showed the UAE’s GDP was Dh1.68 trillion in 2023 at constant prices, up 3.6% from 2022.

The country’s non-oil GDP reached Dh1.25 trillion, reflecting an increase of 6.2% compared to 2022, according to data released by the Federal Center for Competitiveness and Statistics.

With GDP growth, the UAE was ranked fifth in the world in terms of real economic growth rate and sixth in terms of GDP (PPP) per capita in the IMD World Competitiveness Yearbook 2023. Additionally, the UAE was ranked sixth in the world in terms of GNI in the report UNDP Human Development Index Report 2024.

By the end of 2023, the share of non-oil sectors in the country’s GDP was 74.3%, which means an increase of 2.5%. compared to 2022.

Various sectors of the economy recorded significant growth last year, with financial activities and insurance leading the way with growth of 14.3 percent, ranking first among the fastest-growing sectors of the UAE’s GDP. Subsequently, the transportation and warehousing business achieved GDP growth of 11.5%, driven by a significant increase in airport passenger numbers. The total number of foreign guests was approximately 31.5 million, an increase of 25% compared to 2022.

Construction activities grew by 8.9%, the highest in a decade, while real estate activities achieved a growth rate of 5.9%. The residences and food services sector grew by 5.5%, reflecting the extraordinary increase in the number of foreign guests in 2023. The total number of hotel guests was 28 million, an increase of 11% compared to 2022.

At current prices, GDP will reach Dh1.88 trillion in 2023, recording a growth rate of 2.3%. Non-oil GDP, also at current prices, was Dh1.43 trillion, growing by 9.9%, recording an increase of Dh128 billion compared to 2022.

Abdulla bin Touq Al Marri, Minister of Economy, said: “The achieved indicators and noteworthy results highlight the UAE’s progress in achieving the goals set out in the ‘We, UAE 2031’ vision, which aims to raise the country’s GDP to Dh3 trillion in the next decade and support the transition towards a new economic model centered on diversity and innovation.”