The transport and storage sector contributed Dh21.79 billion to the GDP. Image Credit: Shutterstock

Abu Dhabi: The UAE GDP grew at 3.8 per cent at constant prices in the first quarter of 2023, Abdulla bin Touq Al Marri, Minister of Economy, said on Tuesday.

According to data issued by the Federal Center for Competitiveness and Statistics, the country’s economy grew to Dh418.3 billion in the period, a jump of over Dh15 billion over the same period las year.

Non-oil GDP during the period totalled Dh312 billion, an increase of more than Dh13.5 billion or 4.5 per cent.

“The UAE has adopted an innovative economic model that serves its future vision. The flexible economic policies that we adopted to support this goal rely on speed and accuracy in responding to global changes, the formulation of forward-looking strategies and plans to drive economic diversification, and the constant upgradation of economic procedures and legislation. These efforts have helped to maintain the UAE’s position as an attractive environment for investments on an ongoing basis, thus underlining foreign trade and openness to the world as the key aspects of its global partnerships. The success and integration of these policies meet the requirements of sustainable development, ensuring economic prosperity and a decent life for all citizens and residents of the country and solidifying the UAE’s leadership and competitiveness at the regional and international levels,” the minister said.

Image Credit: Supplied/GDMO

“The latest economic results reflect the UAE’s progress in diversifying and sustaining its economy, moving closer to achieving the economic objectives of the ‘We the UAE 2031’ vision. This year, we will launch a new phase of sustainable economic development in line with the continuing national efforts to scale greater heights in terms of economic performance.”

How key sectors fared

The transport and storage sector contributed Dh21.79 billion to the GDP during the period, up 10.9 per cent.

This is followed by the construction sector with a 9.2 per cent growth at Dh36.3 billion. The accommodation and food services activities grew by 7.8 per cent, while the finance and insurance sector achieved a 7.7 per cent growth. Wholesale and retail trade grew 5.4 per cent.

The non-financial projects sector grew by 3.5 per cent, an increase of more than Dh11.7 billion. The ICT sector grew 3.3 per cent, while the real estate sector recorded a 3.1 per cent growth.

Hanan Mansoor Ahli, Director of the Federal Center for Competitiveness and Statistics, said: “The national economy continues to grow, supporting the UAE’s vision to transition into a new economic model based on knowledge and innovation. It confirms the country’s reliance on innovative business models based on proactivity, and flexibility in plans, procedures and legislation. Moreover, well-defined strategies that keep pace with the rapid changes also complement the UAE’s economic growth journey.”