UAE’s non-oil sector to grow by 3.2 percent in 2024: World Bank

The UAE’s non-oil sector will remain strong and continue to support economic growth in 2024, with growth of 3.2%, driven by strong performance in the tourism, real estate, construction, transport and manufacturing sectors. According to the Gulf Economic Update (GEU) Spring 2024 published by the World Bank, oil production growth in the United Arab Emirates is expected to reach 5.8% in 2024.

GDP will increase by 3.9%.

The report also expects the country’s real gross domestic product (GDP) growth to accelerate to 3.9 percent in 2024 as OPEC+ oil production increases in the second half of 2024 and a recovery in global economic activity.

The World Bank explained that the UAE maintained a strong current account surplus of 9.1 percent of GDP due to growth in the non-oil sector, in particular non-oil exports through tourism and commercial services, investment and trade agreements with key Asian countries and African markets.

The report highlighted the strength of financial reserves in most GCC countries in 2023, stating that the UAE recorded significant growth last year. Hence, the significant improvement in the GCC countries’ external balance over the last decade, driven mainly by the oil and gas sector and the expansion of non-oil exports, has allowed financial reserves to remain at a comfortable level.

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Economic diversification efforts are intensifying

In line with its goal of developing the non-oil sector, the World Bank also revealed that the UAE has approved a $10 billion investment in tourism infrastructure and initiated the establishment of a large public-private partnership portfolio worth $10.9 billion. In addition, the country is actively implementing a number of structural measures and strategic investments aimed at diversifying the economy and strengthening its industrial potential.

Some strategic initiatives include:

• Abu Dhabi’s $10 billion investment in tourism infrastructure
• ADNOC Gas’ $13 billion gas expansion plan, both global and local, over the next five years
• Approval of a large $10.9 billion public-private partnership portfolio in Dubai

Additionally, employment in the country has returned to pre-pandemic levels and investment in the Emiratization strategy has increased thanks to a new $1.74 billion budget that aims to integrate 36,000 citizens into the private sector by 2024.

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