The UAE’s non-oil GDP grew by 4 percent in Q1 2024 compared to the same period last year, it was revealed on Monday.
Moreover, the country’s real GDP grew 3.4 percent during the period, touching AED430 billion in Q1 2024.
“The preliminary estimates of the UAE’s GDP growth in the first quarter of 2024, issued by the Federal Competitiveness and Statistics Centre (FCSC), once again underline the resilience and vitality of the national economy and exemplify its ability to continue on the path of sustainable growth. They also reflect the UAE’s commitment to fostering economic diversification focused on knowledge economy sectors,” said Abdulla bin Touq Al Marri, the UAE minister of economy.
“Under the guidance of President His Highness Sheikh Mohamed bin Zayed Al Nahyan and the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, the country adopted an innovative economic model that supports its future vision, along with effective national economic strategies, enhancing openness to the world, promoting partnerships, and transitioning towards an economic model based on flexibility and innovation,” he added.
Non-oil economic activities surge
According to data, financial and insurance activities have emerged as the leading non-oil economic sector contributing to the UAE’s GDP growth, with a remarkable growth of 7.9 per cent. This growth can be attributed to the significant increase in the local credit granted to the private sector, which led to a 6 per cent growth and positively impacting the rebound of non-oil economic activities.
Following closely behind in the second place are transportation and storage activities, which saw a growth of 7.3 per cent. This growth was driven by a notable increase in the number of travellers at the country’s airports during the first three months of this year, reaching 36.5 million, a growth rate of 14.7 per cent compared to the same period last year. The UAE’s ports have demonstrated exceptional performance during this time, with Dubai’s international ports witnessing a 3.7 per cent growth in the number of containers handled, while Abu Dhabi’s ports experienced a 36 per cent increase in cargo handling volume on an annual basis.
Ranking third, construction and building activities experienced a growth rate of 6.2 per cent in line with the several development projects initiated by the UAE government in early 2024. They saw a substantial rise in the government’s public capital expenditures, reaching AED4.8 billion, compared to that of Q1 2023.
Tourism remains key sector
The restaurant and hotel sector secured the fourth spot with a 4.6 per cent growth during the first quarter of 2024 compared to the corresponding period in 2023. Moreover, the UAE emerged at the forefront of global tourism landscape, attracting a substantial number of tourists from around the world. In particular, Dubai witnessed a remarkable influx of 5.18 million international tourists, representing an 11 per cent increase as compared to the corresponding period in 2023. Abu Dhabi also maintained its exceptional performance in key tourism indicators, including the average hotel occupancy rates and revenue per available rooms.
Read: Travel industry set to add record $11 trillion to global GDP in 2024
Non-oil activities boost GDP
Trade activities made the largest contribution to non-oil GDP, accounting for 16.1 per cent. Manufacturing activities come in second at 14.6 per cent, with financial and insurance activities ranking third at a rate of 13.4 per cent. Construction and building activities contributed 11.8 per cent, followed by the real estate activities with a contribution of 7.1 per cent.
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