Non-oil sectors power UAE’s sustainable economic growth
The UAE economy demonstrated impressive growth in the first half of 2024, with its real GDP reaching AED879.6 billion ($239.5 billion), a 3.6% increase compared to the same period last year. Non-oil sectors were the primary growth drivers, highlighting the UAE’s diversification efforts and its position as a global economic powerhouse.
Key GDP Highlights
- Real GDP (constant prices): AED879.6 billion, up 3.6%.
- Non-oil GDP (constant prices): AED660 billion ($180 billion), growing 4.4%.
- Nominal GDP (current prices): AED981 billion ($267 billion), reflecting a 5.6% growth rate.
- Non-oil GDP (current prices): AED749 billion ($204 billion), up 6.8%.
Non-oil sectors now contribute 75% of the UAE’s GDP, underscoring their critical role in economic growth.
Sectoral Performance
Key sectors driving this growth include:
- Transportation and storage: Leading with 8.4% growth.
- Financial and insurance activities: Increased by 7.6%.
- Construction: Rose by 7.3%.
- Information and communication: Achieved 5.3% growth.
- Restaurants and hotels: Expanded by 5.1%, fueled by tourism.
The hospitality sector recorded AED24.6 billion ($6.7 billion) in hotel revenues, hosting 15.3 million guests, a 10.5% increase.
Contributions to Non-Oil GDP
- Trade: Largest contributor at 16.5%.
- Manufacturing: Accounted for 15%.
- Finance and insurance: Represented 12.5%.
- Construction: Contributed 11.6%.
- Real estate: Added 7.6%.
Leadership Insights
Abdulla bin Touq Al Marri, UAE Minister of Economy, credited the UAE’s growth to the visionary leadership of President Sheikh Mohamed bin Zayed Al Nahyan and Sheikh Mohammed bin Rashid Al Maktoum, emphasizing their focus on innovation, sustainability, and global economic integration.
“The UAE has successfully laid the foundation for a sustainable, diversified economy… aligning with global trends while maintaining its position as a premier economic hub,” he said.
This growth aligns with the ‘We the UAE 2031’ vision, aiming to raise the GDP to AED3 trillion ($817 billion) by 2031.
Future Outlook
Hanan Mansour Ahli
Managing Director of the Federal Competitiveness and Statistics Centre
Hanan Mansour Ahli, noted that the UAE’s dynamic and diversified economy, supported by sustainable policies, positions it as a global leader.
“Transportation, finance, and construction are emerging as pillars of economic growth, with the UAE leveraging its strengths to drive sustainable progress,” she added.
The UAE’s robust economic performance in H1 2024 reflects its ability to adapt and thrive across non-oil sectors, positioning itself as a global leader in economic sustainability and diversification.
