UAE GDP Grows by 3.8% in First Nine Months of 2024, Driven by Strong Performance in Non-Oil Sectors

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UAE GDP Grows by 3.8% in First Nine Months of 2024, Driven by Strong Performance in Non-Oil Sectors

The United Arab Emirates' (UAE) real Gross Domestic Product (GDP) recorded a 3.8% growth during the first nine months of 2024, reaching AED 1.322 trillion, according to the Federal Competitiveness and Statistics Centre (FCSC). The country’s non-oil GDP also saw a 4.5% increase, amounting to AED 987 billion, further reinforcing the UAE’s drive toward economic diversification and sustainable economic development.

The non-oil sectors contributed 74.6% to the country's real GDP, while oil-related activities accounted for 25.4%, reflecting the country’s continued shift toward a diversified economy in line with the ‘We the UAE 2031’ vision, which aims to raise the UAE’s GDP to AED 3 trillion over the next decade.

Minister of Economy Highlights UAE's Economic Strength

H.E. Abdulla bin Touq Al Marri, Minister of Economy, emphasized that the UAE's economic growth is a testament to the country’s successful economic diversification policies and progressive economic model. Under the leadership of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai, the UAE has continued to build a globally recognized economic framework.

"Guided by the directives of our wise leadership, the UAE has built an innovative economic model based on global best practices. The continued growth of our national economy highlights the success of our diversification policies, aimed at facilitating business growth, expanding new economic sectors, and strengthening global partnerships," said H.E. Bin Touq.

He further emphasized that the government’s ongoing efforts to attract investments, implement business-friendly legislation, and promote global economic openness remain instrumental in driving sustainable growth. The UAE is committed to achieving the ‘We the UAE 2031’ objectives, aimed at raising the country’s GDP to AED 3 trillion and positioning it as a global hub for the new economy.

Non-Oil Sector Driving Sustainable Economic Growth

H.E. Hanan Mansoor Ahli, Managing Director of the Federal Competitiveness and Statistics Centre (FCSC), highlighted that the UAE’s economic growth in 2024 reflects a clear and forward-looking vision that focuses on fostering sustainable economic growth, mainly driven by non-oil sectors.

"The UAE’s continued GDP growth is driven by a strong and future-oriented economic model that emphasizes economic diversification, creating more business opportunities, and fostering a competitive environment for global investors and entrepreneurs," said H.E. Hanan Ahli.

The non-oil GDP, which grew by 4.5% during the first nine months of 2024, accounted for 74.6% of the total real GDP, underlining the country's progress in reducing oil dependency. The nominal GDP for the same period reached AED 1.486 trillion, representing a 6% year-on-year growth, while non-oil GDP at current prices recorded AED 1.136 trillion, up by 6.6%.

Sector-Wise Growth Performance

The transport and warehousing sector led the growth during the first nine months of 2024, recording a 7.9% growth, driven by a 20% increase in passenger traffic at the country’s airports, which handled over 103 million passengers during this period. The construction sector also showed remarkable growth of 7.4%, fueled by strong investments in urban infrastructure projects.

Other major sectors that contributed to non-oil GDP growth include:

Financial and insurance activities: Grew by 6.8%, reflecting increased demand for financial services and capital inflows.
Government services: Recorded a 5.0% growth, contributing to public sector development.
Accommodation and food services (hospitality sector): Witnessed a 4.9% increase, driven by a surge in international visitors and hotel occupancy rates.

In terms of sectoral contribution to non-oil GDP, the trade sector remained the highest contributor at 16.5%, followed by:

Manufacturing sector: Contributed 15.1% to the non-oil GDP.
Financial and insurance activities: Accounted for 12.1% of the non-oil GDP.
Construction sector: Held a 11.7% share in non-oil GDP.
Real estate activities: Contributed 7.6% to the overall non-oil GDP.

Positive Outlook for Economic Growth

The UAE’s nominal GDP during the first nine months of 2024 reached AED 1.486 trillion, recording a 6% growth compared to the same period in 2023. This performance was primarily driven by a 6.6% increase in non-oil GDP at current prices, which reached AED 1.136 trillion.

The growth of non-oil sectors and increased foreign direct investment (FDI) have significantly contributed to enhancing the UAE’s economic resilience, reducing reliance on oil revenues, and promoting a more diversified economy.

Achieving the 'We the UAE 2031' Vision

The UAE’s long-term economic strategy, outlined in the ‘We the UAE 2031’ vision, aims to:

Raise the GDP to AED 3 trillion by the next decade.
Increase non-oil sector contributions to real GDP.
Position the UAE as a global hub for the new economy.
Strengthen trade and investment relations globally.

H.E. Bin Touq reaffirmed the UAE’s commitment to continuing its economic diversification efforts and promoting sustainable development, emphasizing that the UAE’s progressive business environment and policy reforms will drive long-term economic growth.