Non-oil industries drive UAE’s economic growth – Report

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The United Arab Emirates (UAE) has secured the 5th largest economy position in the real GDP growth index globally, according to recent data released by the Federal Competitiveness and Statistics Centre. In 2023, the UAE’s GDP stood at Dh1.68 trillion at constant prices, marking a 3.6 per cent increase from the previous year.

The country’s non-oil GDP reached Dh1.25 trillion, reflecting a significant 6.2 per cent growth compared to 2022. This growth has propelled the UAE to rank fifth worldwide in the Real Economic Growth Rate Index and sixth in GDP (PPP) per capita in the IMD World Competitiveness Yearbook 2023. Additionally, the UAE ranked sixth globally in the GNI Index in the UNDP Human Development Index Report 2024.

By the end of 2023, the contribution of non-oil sectors to the country’s GDP reached 74.3 per cent, marking a growth of 2.5 per cent compared to the previous year. Various economic sectors recorded substantial growth, with financial activities and insurance leading the way with a growth of 14.3 per cent. Transport and storage activities followed closely, achieving a GDP growth of 11.5 per cent, driven by a significant increase in airport passengers.

Construction and building activities witnessed an 8.9 per cent growth, the highest in the past decade, while real estate activities achieved a growth rate of 5.9 per cent. The residency and food services sector grew by 5.5 per cent, reflecting the remarkable increase in international visitors in 2023. Hotel guests totalled 28 million, an 11 per cent increase compared to the previous year.

At current prices, the GDP reached Dh1.88 trillion in 2023, recording a growth rate of 2.3 per cent. Non-oil GDP, also at current prices, amounted to Dh1.43 trillion, growing at an impressive rate of 9.9 per cent.

Abdulla bin Touq Al Marri, Minister of Economy, expressed his satisfaction with the achieved indicators and outcomes, highlighting the UAE’s progress in achieving the objectives outlined by the ‘We the UAE 2031’ vision. This vision aims to elevate the country’s GDP to Dh3 trillion within the next decade and foster a shift towards a new economic model centered around diversity and innovation.

The UAE’s remarkable economic growth and diversification efforts have positioned the country as a global leader in economic development and competitiveness, setting a strong foundation for continued success in the years to come.

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