Bin Touq: UAE’s non-oil sectors’ contribution to GDP a qualitative achievement
Minister of Economy Abdullah bin Touq Al Marri confirmed that the increase in the contribution of the non-oil sectors to the UAE’s GDP reached 73.5% at constant prices during the first quarter of 2022 and represents a new qualitative achievement for the national economy and comes as a translation of the tireless efforts undertaken by all local and federal authorities, including the Ministry of Economy, to promote the transformation of the state’s economy towards future sectors and the new economy, and to consolidate the diversity of its sources away from oil.
According to the Competitiveness and Statistics report, the UAE’s GDP at constant prices has increased by 8.44%, while the GDP at current prices increased by 22.36% during the first quarter of this year.
Activities related to the tourism and retail sector, including accommodation services, hotels, and restaurants, achieved a new leap in growth to record the largest increase among other sectors contributing to supporting the country’s GDP, with an increase of 35.3% at constant prices and 128.8% at current prices during the first quarter of the year 2022, consolidating the UAE’s position as a sustainable destination for travel and hospitality.
In this regard, Bin Touq stressed that the qualitative leap achieved by the tourism and retail sector, to become the largest growth sector within the GDP structure, reflects the growing economic activity, especially in entertainment, tourism and hospitality services, marking the importance of innovative initiatives launched by the state, strengthening its position on the tourism map regionally and globally, and establishing its position as one of the most popular destinations for global tourists, due to its diverse offerings and attractions, foremost among which is the leading infrastructure, distinguished services and facilities, and advanced hotel and tourism facilities.
He said: “The new positive growth achieved by the UAE enhances the country’s outstanding record of economic achievements, and reflects the soundness of the approach followed, the efficiency of the economic initiatives and strategies that have been implemented during the last period, and the resilience of the national economy, which has overcome the stage of recovery from the effects of the pandemic and entered the growth stage in many sectors, while reflecting the depth of the sound forward-looking vision of the wise leadership, in line with the 50 goals and the parameters of the UAE Centennial 2071, which aim to build a sustainable knowledge-based economic model based on innovation, led by national competencies.”
The gross domestic product of the UAE at constant prices increased to 399.198 billion dirhams during the first quarter of this year, compared to 368.11 billion dirhams in the first quarter of 2020, while the gross domestic product at current prices increased from 351.99 billion dirhams to 430.7 billion dirhams.
The non-oil GDP at constant prices increased by 8.84% to reach 293.386 billion dirhams in the first quarter of this year, compared to 269.54 billion dirhams in the first quarter of 2020, while the non-oil GDP at current prices increased by 16.09% from 273.057 billion dirhams to 316.99 billion dirhams, according to the competitiveness and statistics report.
Bin Touq stressed the pivotal role of the initiatives launched by the state in advancing the wheels of comprehensive economic development towards greater growth and stability, through a variety of innovative and diversified initiatives that contributed significantly to diversifying the umbrella of the state’s economic base, and enhanced the role of the new economic sectors in supporting the growth of the UAE’s GDP, noting that the ministry is continuing to support the new economic model of the country and make it more flexible and diversified through a package of pioneering initiatives that were recently launched in cooperation with its strategic partners in the public and private sectors, including the Investopia Investment Initiative, which is a global platform to accelerate the growth of new economic sectors, the Comprehensive Economic Partnerships Program, one of the pivotal pillars in the sustainability of the growth of the national economy, and the 10×10 program to develop national exports.
This is in addition to the new foreign ownership system that allows commercial companies to enjoy 100 percent foreign ownership in all economic sectors, in addition to enjoying an advanced system for the protection of intellectual property and creativity, in line with the country’s economic policies aimed at reducing dependence on oil, and strengthening the areas of the creative economy in the country.
According to “Competitiveness and Statistics”, the contribution of real estate activities amounted to about 21.57 billion dirhams, an increase of 6.9%, wholesale and retail trade and repair of motor vehicles and motorcycles to 49.84 billion dirhams, an increase of 8%, and manufacturing industries to 42.54 billion dirhams, an increase of 8%, and agriculture, forestry and fishing to 6.46 billion dirhams, and education to 5.88 billion dirhams, financial and insurance activities to 35.57 billion dirhams, an increase of 8.3%, and construction and building to 32.29 billion dirhams.