UAE economy grows 3.8% in first nine months of 2024, driven by non-oil sectors

Abu Dhabi: The UAE recorded a 3.8 per cent growth in real GDP, reaching Dh 1.322 trillion in the first nine months of 2024 compared to the same period in 2023, according to data from the Federal Competitiveness and Statistics Center (FCSC).

The non-oil GDP surged by 4.5 per cent, amounting to Dh 987 billion, further strengthening the country’s economic diversification strategy.

Non-oil activities accounted for 74.6 per cent of the UAE’s total real GDP, while the oil sector contributed 25.4 per cent.

Commenting on the latest figures, Abdullah bin Touq Al Marri, Minister of Economy, emphasized that the country’s sustained economic growth reflects the success of its policies to foster a dynamic and diverse economy.

“The UAE’s continued economic expansion is a testament to the effectiveness of our strategies to enhance economic diversification, streamline business practices, and expand key new economy sectors,” said Al Marri.

“Under the leadership of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, and the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai, the UAE has built an innovative economic model aligned with global best practices, capable of adapting to global economic shifts and challenges.”

He further noted that the UAE is committed to increasing the contribution of non-oil sectors to the economy, developing more flexible and competitive economic legislation, and strengthening economic openness to global markets.

“By forging strong partnerships with key economies around the world, we are not just strengthening our economic foundations, we seek to achieve the UAE 2031 vision, which aims to grow the country’s GDP to Dh 3 trillion in the next decade and establish the UAE as a leading global hub for the new economy.” Al Marri added.

Meanwhile, Hanan Mansour Ahli, Director of the Federal Competitiveness and Statistics Center (FCSC), noted that the latest GDP growth figures reinforce the UAE’s economic strength and commitment to sustainable, non-oil-driven growth.

“The robust expansion of the UAE’s GDP in the first nine months of 2024 reflects the nation’s clear vision for economic progress, underpinned by its focus on non-oil sectors,” said Ahli. “Economic diversification is a fundamental pillar of the UAE’s future strategy, ensuring sustained growth across key economic indicators.”

The first nine months of 2024 have seen significant growth in various sectors. The transport and storage sector led with a growth rate of 7.9 per cent, driven by impressive performance in the aviation sector, where airports in the UAE recorded over 103 million passengers, a 20 per cent growth.

The construction sector followed closely with a 7.4 per cent increase, supported by substantial investments in urban infrastructure projects.

The financial and insurance sectors also showed a notable 6.8 per cent growth, while government activities grew by 5.0 per cent. Additionally, the restaurant and hotel sectors reported a 4.9 per cent increase.

Regarding contribution to the non-oil GDP, the trade sector topped the list with a share of 16.5 per cent, followed by manufacturing industries contributing 15.1 per cent.

The financial and insurance sectors contributed 12.1 per cent, construction activities comprised 11.7 per cent, and real estate activities contributed 7.6 per cent.

The nominal GDP of the UAE for the first nine months of 2024 reached Dh 1.48 trillion, growing by 6 per cent compared to the same period in 2023.

The non-oil GDP at current prices amounted to Dh1.14 trillion, reflecting a growth rate of 6.6 per cent. Non-oil activities contributed 76.5 per cent of the nominal GDP, while oil-related activities accounted for 23.5 per cent.