H.E. Abdullah bin Touq Al Marri, the UAE Minister of Economy, explained that the preliminary estimates of the UAE’s gross domestic product (GDP) growth at constant prices in the first quarter (Q1) of the year 2023, issued by the Federal Center for Competitiveness and Statistics, confirm the strength of the national economy. Most sectors and economic activities that serve as the key pillars of the national economy made significant contributions, taking the UAE’s GDP to AED 418.3 billion ($113.8 billion) in Q1 2023, up 3.8 percent or more than AED 15 billion compared to the same period last year.
Meanwhile, the non-oil GDP totaled AED 312 billion, indicating an increase of more than AED 13.5 billion or a 4.5 percent growth. The latest results confirm the success of the UAE’s efforts to promote the growth of non-oil economic sectors and transition to an economic model based on knowledge and innovation.
Read more: UAE economy grows by 7.9 percent in 2022
Flexible economic policies
The Minister of Economy said: “The UAE, under the leadership of President H.H. Sheikh Mohammed bin Zayed Al Nahyan, and following the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, 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.”
The Minister added: “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.”
H.E. Bin Touq added: “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.”
Innovative business models
H.E. 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.”
Furthermore, H.E. thanked the Center’s strategic partners from the federal and local government entities. H.E. also thanked the private sector for their support and continued cooperation in assessing the UAE’s GDP growth.
Contribution of key sectors
The contribution of the transport and storage sector to the GDP in Q1 2023 amounted to AED 21.79 billion, up 10.9 percent compared to the same period in 2022, to become the highest.
This is followed by the construction sector with a 9.2 percent growth compared to the same period in 2022, to total AED 36.3 billion. The accommodation and food services activities grew by 7.8 percent, while the finance and insurance sector achieved a 7.7 percent growth. Wholesale and retail trade achieved 5.4 percent growth in the first quarter of the year to exceed AED 102.3 billion.
The non-financial projects sector grew by 3.5 percent, an increase of more than AED 11.7 billion compared to Q1 2022. The ICT sector also achieved a growth of 3.3 percent, while the real estate sector recorded a 3.1 percent growth compared to the same period in 2022.
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