In a positive start to 2024, the UAE (United Arab Emirates) saw a 3.4% rise in its real GDP, reaching AED430 billion, according to the preliminary estimates released by the Federal Competitiveness and Statistics Centre (FCSC). This reflects a steady expansion compared to the same period last year.
Non-oil sectors played a significant role, with the economy’s non-oil GDP experiencing a 4% year-on-year growth. The nation’s success in diversifying its economic base is highlighted by robust performances in various sectors such as finance, tourism, and transportation.
“Under the guidance of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, and the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, the country adopted an innovative economic model that supports its future vision,” said Abdulla bin Touq Al Marri, Minister of Economy. He added that the country is transitioning towards a flexible and innovative economic structure through effective national strategies and global partnerships.
Non-Oil Sectors Show Prominent Growth
Leading the non-oil sectors were financial and insurance services, which posted an impressive 7.9% growth. The transportation and storage sector followed closely with a 7.3% rise, while construction activities saw a 6.2% boost.
In the transportation sector, UAE airports recorded a 14.7% increase in passenger traffic, totaling 36.5 million travelers in Q1 2024. Dubai’s ports experienced a 3.7% rise in container handling, and Abu Dhabi’s ports reported a notable 36% growth in cargo volume.
The UAE hospitality sector also witnessed substantial progress. Restaurants and hotels saw a 4.6% increase, driven by Dubai welcoming 5.18 million tourists, reflecting an 11% year-on-year rise in visitor numbers.
“The financial and economic data supporting the growth of the UAE’s GDP in Q1 2024 reflect the resilience of the country’s vital economic sectors,” remarked Hanan Ahli, Managing Director of the FCSC. “These indicators highlight the success of leadership’s efforts to promote economic diversification, reduce oil dependence, and attract investment.”
This strong performance further solidifies the UAE’s position as a global economic hub and a top destination for international tourism and business.
