Non-Oil GDP Contributes 75% to National Output Amid Diversification Efforts.
The UAE economy showed strong performance in the first half of 2024, according to preliminary estimates by the Federal Competitiveness and Statistics Centre (FCSC). The Minister of Economy, Abdulla bin Touq Al Marri, underlined the excellent performance of the country’s economy, which has been driven by strategic diversification and innovation, further cementing the nation’s leading position as a global business and investment hub.
PC: Gulf News
The real GDP of the UAE (at constant prices) during this period was recorded at AED879.6 billion, with a 3.6% increase over the same period in 2023. Non-oil GDP amounted to AED 660 billion, representing 4.4% growth and contributed 75% to the total GDP.
In nominal terms, at current prices, GDP rose to AED 981 billion in the first half of 2024, with a growth rate of 5.6%. Non-oil GDP also grew strongly to reach AED 749 billion with a growth rate of 6.8%.
“The UAE’s progress reflects the visionary leadership of President His Highness Sheikh Mohamed bin Zayed Al Nahyan and the strategic guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum,” Bin Touq stated. He noted that these achievements align with the UAE’s long-term vision, including its target to raise GDP to AED 3 trillion by 2031.
Key Drivers of Growth
Bin Touq pointed out that this growth in the UAE has been supported by a diversified non-oil economy buoyed by booming industries such as transportation, finance, construction, and tourism, as well as major development projects and policies supporting entrepreneurship, trade, and investment.
FCSC estimates indicated that transportation and storage activities were the fastest-growing sector, recording an 8.4% growth rate in the first half of 2024. Financial and insurance activities came second with 7.6%, and construction activities recorded 7.3%. The information and communication sector grew by 5.3%, and the restaurants and hotels sector by 5.1%, underpinned by strong tourism activity.
Tourism was also a key contributor, with hotel revenues crossing AED 24.6 billion, up 7 percent. The UAE welcomed some 15.3 million hotel guests, up 10.5 percent compared to the same period in 2023.
Sector Contributions
Trade activities appeared as the single biggest contributor to UAE’s non-oil GDP with a share of 16.5%. Manufacturing came next with a contribution of 15%, followed by financial and insurance activities at 12.5%, construction at 11.6%, and real estate activities at 7.6%.
Hanan Mansour Ahli, Managing Director of FCSC, underscored the UAE’s consistent policy of economic openness and diversification, driven by forward-thinking strategies. “These figures reaffirm the UAE’s commitment to strengthening its economic standing globally as one of the most dynamic and diversified economies,” Ahli stated.
Road to Sustainable Development
Bin Touq stressed the importance of sustained efforts and collaboration across sectors to maintain inclusive economic progress. “This growth reflects the UAE’s capacity to seize emerging opportunities across multiple fields, paving the way for achieving the ambitious goals of the ‘We the UAE 2031’ vision,” he added.
The economic path of the UAE shows the success of its diversification efforts and sets the scene for further growth and global competitiveness in the years ahead.
