The Organization of the Petroleum Exporting Countries (OPEC) stated that the UAE is maintaining strong growth in its non-oil sectors due to robust government support and solid demand.
According to the May report, the UAE experienced a year-on-year (YoY) increase of 7.3 percent in its non-oil GDP during the second quarter of 2023.
This growth was primarily driven by the construction, finance, and insurance sectors.
The positive momentum continued throughout 2023, particularly in Abu Dhabi, where non-oil GDP grew by 10.4 percent YoY in the fourth quarter of the same year.
Read more: Oil demand to increase by 2.25 million barrels a day in 2024: OPEC+
The report also highlighted Dubai’s economic expansion of 3.5 percent YoY in the third quarter of 2023.
The transportation and storage sectors saw notable growth at 12.0 percent, while accommodation and food services activities experienced a remarkable increase of 16.1 percent.
Meanwhile, the construction sector in Dubai expanded at a more moderate pace of 1.1 percent.
The Central Bank of the UAE(CBUAE) has maintained its key policy rate at 5.4 percent since July 2023.
The seasonally adjusted S&P Global PMI for the UAE stood at 55.3 in April, slightly lower than March’s 56.9 and February’s 57.1.
Despite the slight decline, the PMI remains in expansionary territory, indicating continuous growth in the UAE.
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