In the first quarter of 2023, the UAE’s GDP experienced a 3.8 per cent growth at constant prices, as revealed by Abdulla bin Touq Al Marri, the Minister of Economy. The Federal Center for Competitiveness and Statistics data indicates that the nation’s economy reached AED 418.3B during the period, marking a remarkable increase of AED 15B compared to the previous year. Additionally, the non-oil GDP surged to AED 312B, reflecting an impressive rise of more than AED 13.5B or 4.5 per cent.
“The UAE has adopted an innovative economic model that serves its future vision. The flexible economic policies that we adopted to support this goal rely on speed and accuracy in responding to global changes, the formulation of forward-looking strategies and plans to drive economic diversification, and the constant upgradation of economic procedures and legislation. These efforts have helped to maintain the UAE’s position as an attractive environment for investments on an ongoing basis, thus underlining foreign trade and openness to the world as the key aspects of its global partnerships. The success and integration of these policies meet the requirements of sustainable development, ensuring economic prosperity and a decent life for all citizens and residents of the country and solidifying the UAE’s leadership and competitiveness at the regional and international levels,” the minister said.
“The latest economic results reflect the UAE’s progress in diversifying and sustaining its economy, moving closer to achieving the economic objectives of the ‘We the UAE 2031’ vision. This year, we will launch a new phase of sustainable economic development in line with the continuing national efforts to scale greater heights in terms of economic performance.”
Positive Development in Wholesale and Retail Trade Sector
During the period, the transport and storage sector made a notable contribution of AED 21.79B to the GDP, showing an impressive increase of 10.9 per cent. Following closely was the construction sector, which experienced a growth of 9.2 per cent, reaching AED 36.3B, according to Gulf News.
The accommodation and food services activities displayed a steady growth of 7.8 per cent, while the finance and insurance sector achieved a commendable 7.7 per cent growth. Additionally, the wholesale and retail trade sector witnessed a positive development with a growth rate of 5.4 per cent.
In terms of non-financial projects, there was a significant growth of 3.5 per cent, amounting to an increase of over AED 11.7B. The ICT sector also experienced growth, recording a 3.3 per cent expansion, while the real estate sector displayed a 3.1 per cent growth.
Hanan Mansoor Ahli, Director of the Federal Center for Competitiveness and Statistics, said: “The national economy continues to grow, supporting the UAE’s vision to transition into a new economic model based on knowledge and innovation. It confirms the country’s reliance on innovative business models based on proactivity, and flexibility in plans, procedures and legislation. Moreover, well-defined strategies that keep pace with the rapid changes also complement the UAE’s economic growth journey.”
