UAE Non-Oil Sectors Contribute 75% to GDP Growth in H1 2024
The UAE’s gross domestic product (GDP) grew by 3.6% in the first half of 2024, with non-oil sectors contributing 75% to the economy, according to preliminary estimates by the Federal Competitiveness and Statistics Centre (FCSC).
The country’s non-oil GDP reached approximately AED 660 billion, registering a 4.4% growth compared to the same period in 2023. The nominal GDP at current prices reached AED 981 billion, reflecting a 5.6% growth, while non-oil GDP at current prices rose to AED 749 billion, showing a 6.8% growth.
Key Growth Sectors
Among the non-oil sectors, transport and storage activities emerged as the fastest-growing, with a remarkable 8.4% growth rate, followed by:
- Financial and insurance activities, achieving 7.6% growth and contributing 12.5% to the non-oil GDP.
- Construction and building, growing by 7.3%.
- Information and communication, achieving a 5.3% growth.
The restaurants and hotels sector saw 5.1% growth, driven by a surge in tourism, with hotel revenues exceeding AED 24.6 billion, a 7% increase. The total number of hotel guests across the UAE’s seven emirates reached 15.3 million, representing a 10.5% increase.
Key Contributors to Non-Oil GDP
The largest contributors to non-oil GDP were:
- Trade activities, accounting for 16.5%.
- Manufacturing, contributing 15%.
- Financial and insurance activities, at 12.5%.
- Construction, at 11.6%.
- Real estate activities, contributing 7.6%.
Visionary Leadership Driving Growth
H.E. Abdulla bin Touq Al Marri, Minister of Economy, attributed the robust growth to the UAE's forward-looking strategies and developmental projects. He stated:
“The achievements highlight the visionary leadership of His Highness Sheikh Mohamed bin Zayed Al Nahyan and the strategic guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum. The UAE has laid the foundation for a sustainable, diversified economy driven by innovation and knowledge, aligning with global trends.”
This progress aligns with the ‘We the UAE 2031’ vision, which aims to raise the UAE’s GDP to AED 3 trillion within the next decade.
Economic Competitiveness
Hanan Mansour Ahli, Managing Director of FCSC, highlighted the UAE’s commitment to economic openness and sustainable diversification, stating:
“The UAE aims to strengthen its economic standing as one of the most dynamic and diversified economies globally, driven by forward-thinking strategies and sustainable diversification plans.”
The non-oil economic activities reflect the UAE's ability to capitalize on emerging opportunities, ensuring a dynamic and competitive economy that continues to attract business and investment worldwide.
