New economies to raise share of non-oil sector in UAE’s GDP to 80%, minister says

Dubai: Powered by new economies, the share of the non-oil sector in the UAE’s GDP is set to rise to 80 per cent, Abdulla bin Touq Al Marri, Minister of Economy, said during an event in Dubai on Thursday.

“The UAE has a huge diversified economy. It’s 75 per cent non-oil GDP. It’s the highest in the Mena region. Our target is to reach 80 per cent,” Al Marri said during the Dubai International Project Management Forum.

“Where are we going to get that additional 5 per cent? We are not going to get it from aviation, retail or hospitality. We need to get it from new economies,” he said during a panel on ‘Shaping the Digital Economy’.

While transport and storage activities have emerged as the fastest growing non-oil economic sectors in the GDP during the first six months of 2024, the focus will be on new economies, such as digital technologies and platforms, robotics, AI and automation.

Sandboxes

Al Marri highlighted the UAE’s willingness to test world-class technologies, noting that self-driving cars are being tested in designated zones. This week, Masdar City launched tests for autonomous vehicles, and in December 2024, a drone delivery system was introduced at Dubai Silicon Oasis.

“The UAE’s land is a test bed for the world-class technologies to be tested on,” he said.

Al Marri noted the importance of public-private partnerships (PPP) in driving future growth.

“The future lies in PPPs. When it comes to innovation, creativity, taking risks, it’s public-private partnerships,” the minister said.

Meanwhile, Dr Aisha Bin Bishr, a global digital transformation expert and strategic leader in Smart City Initiatives, highlighted the growing role of AI in enhancing capabilities and driving efficiencies across economies.

“We need to foster a culture of innovation. We need to upskill employees, and open labs for innovators to explore AI applications,” she said on the closing day of the forum.