UAE GDP Growth Strengthens as Non-Oil Sectors Expand
The UAE GDP recorded a 3.8% growth in the first nine months of 2024, reaching AED 1.322 trillion, driven by robust expansion in non-oil sectors. The non-oil economy surged by 4.5%, contributing AED 987 billion to the overall economic output, reinforcing the country’s commitment to economic diversification. The non-oil sector’s contribution to real GDP stood at 74.6%, while oil-related activities accounted for 25.4%.
A Vision for Economic Diversification
The UAE continues to strengthen its position as a global economic hub, with policies focused on enhancing business activity, fostering innovation, and expanding key industries. Economic strategies support sustainable development, ensuring the country remains resilient in an evolving global market. With a long-term goal to increase the UAE GDP to AED 3 trillion within the next decade, national efforts remain concentrated on attracting investment, strengthening trade partnerships, and boosting non-oil sectors.
Key Economic Sectors Driving Growth
Several industries played a vital role in the UAE’s economic expansion during 2024:
- Transport and Warehousing: Grew by 7.9%, supported by record airport passenger traffic of over 103 million, a 20% increase from the previous year.
- Construction: Expanded by 7.4%, fueled by major urban infrastructure developments.
- Financial and Insurance Services: Increased by 6.8%, highlighting the sector’s resilience and growing investor confidence.
- Government Services: Saw a 5.0% rise, supporting economic stability.
- Hospitality and Restaurants: Grew by 4.9%, benefiting from a thriving tourism industry.
Top Contributors to Non-Oil GDP
- Trade Sector: The largest contributor, accounting for 16.5% of non-oil GDP.
- Manufacturing: Played a crucial role with a 15.1% share, highlighting the UAE’s industrial expansion.
- Financial and Insurance Activities: Represented 12.1%, reflecting a robust banking and investment climate.
- Construction: Contributed 11.7%, driven by large-scale projects and infrastructure growth.
- Real Estate: Accounted for 7.6%, reinforcing Dubai and Abu Dhabi’s positions as top global property markets.
Nominal GDP and Non-Oil Expansion
The nominal UAE GDP for the first nine months of 2024 reached AED 1.486 trillion, marking a 6% growth compared to the previous year. The non-oil economy at current prices grew by 6.6%, amounting to AED 1.136 trillion. Non-oil activities made up 76.5% of the nominal GDP, while oil and gas contributed 23.5%.
A Strong Future for the UAE Economy
The UAE’s continued economic growth reflects strategic diversification efforts, investment in high-growth sectors, and a commitment to innovation and infrastructure. With strong financial policies, expanding global trade partnerships, and a growing non-oil economy, the UAE remains on track to achieve its long-term economic targets. The country’s strategic location, advanced infrastructure, and investor-friendly policies continue to make it one of the most attractive destinations for business and economic growth.
As UAE GDP trends upward, the nation is solidifying its reputation as a leading economic powerhouse in the Middle East, setting the stage for continued prosperity and investment opportunities.
