UAE’s GDP grows 3.4% to Dh430 billion in first quarter of 2024
Financial, insurance sector activities topped non-oil economic activities with 7.9% growth
Dubai: The UAE’s real gross domestic product (GDP) reached Dh430 billion during the first quarter of 2024, signalling a 3.4 per cent growth compared to Q1 2023, the Minister of Economy Abdulla bin Touq Al Marri announced. He stated that the UAE non-oil GDP grew by 4 per cent during the first quarter (compared to Q1 2023), with financial and insurance activities achieving a 7.9 per cent growth rate.
The Ministry said that robust tourism inflows to the UAE also led to a 4.6 per cent growth in restaurant and hotel activities. The Federal Competitiveness and Statistics Centre (FCSC) issued the growth rates on Monday.
Al Marri said, “The preliminary estimates of the UAE’s GDP growth in the first quarter (Q1) of 2024 reflects the UAE’s commitment to fostering economic diversification focused on knowledge economy sectors, as the country’s real GDP reached Dh 430 billion in Q1 2024.”
He added, “Under the guidance of UAE leaders, 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,”
The positive results the national economy has achieved fall in line with the economic objectives of the ‘We the UAE 2031’ vision, which includes raising the country’s GDP to Dh3 trillion by the next decade.
Non-oil activities show highest growth
Trade activities contributed the most to the 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 13.4 per cent. Construction and building activities contribute 11.8 per cent, followed by real estate activities with a contribution of 7.1 per cent.
Based on the data released by the FCSC, financial and insurance activities have emerged as the leading non-oil economic sector contributing to the UAE’s GDP growth, with an increase of 7.9 per cent.
“This growth can be attributed to the 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,” the Ministry explained. The transportation and storage activities come in second place, with 7.3 per cent growth.
“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 travellers, a growth rate of 14.7 per cent compared to the same period last year,” the Ministry explained.
Ports, construction sectors
Moreover, the UAE’s ports have also performed well during this time, with Dubai’s international ports witnessing a 3.7 per cent growth in the number of containers handled. Abu Dhabi’s ports experienced a 36 per cent increase in cargo handling volume annually.
Ranking third, construction and building activities experienced a growth rate of 6.2 percent, in line with the several development projects initiated by the UAE government in early 2024. The government’s public capital expenditures substantially rose, reaching Dh 4.8 billion, compared to Q1 2023.
The restaurant and hotel sector secured the fourth spot, with a 4.6 per cent growth rate during the first quarter of 2024 compared to the corresponding period in 2023.
Tourism sector
The Ministry said the UAE attracted a substantial number of tourists from around the world. Dubai witnessed an influx of 5.18 million international tourists, representing an 11 per cent increase compared to the corresponding period in 2023. Abu Dhabi also maintained its performance in key tourism indicators, including the average hotel occupancy rates and revenue per available room.
Hanan Ahli, Managing Director of FCSC said, “UAE’s advanced rankings in multiple global economic competitiveness indicators can be attributed to several factors, including the stability of the financial system, the strength of the national economy, and the effectiveness of economic legislation and policies applied in the country, besides their ability to adapt to changes and face regional and global challenges.”