UAE's 'We the UAE 2031' Vision Drives Growth in Non-Oil Sectors, Financial Activities Lead the Charge
The UAE's economy continues its robust expansion, with the latest figures from the Federal Competitiveness and Statistics Centre (FCSC) showcasing a 3.4% growth in the country’s real GDP in Q1 2024, reaching AED 430 billion. Non-oil GDP saw a notable rise of 4% during the same period, reflecting the UAE's ongoing commitment to economic diversification and innovation under its 'We the UAE 2031' vision. This initiative aims to increase the UAE’s GDP to AED 3 trillion by 2031, focusing on knowledge-based sectors and sustainable growth.
H.E. Abdulla bin Touq Al Marri, UAE Minister of Economy, remarked that these results exemplify the country’s resilience, stating, "The UAE’s economic model, driven by visionary leadership, supports sustainable growth and fosters partnerships, enhancing the nation’s global economic standing." He emphasized that the positive momentum aligns with the economic goals of 'We the UAE 2031.'
Financial Sector and Non-Oil Economic Growth
The financial and insurance sector emerged as the fastest-growing non-oil economic activity, expanding by 7.9% due to increased local credit to the private sector. This growth has further bolstered non-oil economic activities, contributing significantly to the country's overall GDP. Transportation and storage sectors also posted impressive growth of 7.3%, driven by a 14.7% increase in air travel, with 36.5 million passengers passing through UAE airports in Q1 2024.
The construction sector ranked third in growth, with a 6.2% increase due to substantial public capital expenditures totaling AED 4.8 billion in early 2024. Meanwhile, the restaurant and hotel sector grew by 4.6%, buoyed by robust tourism, particularly in Dubai, which saw 5.18 million international tourists, an 11% year-on-year increase.
Diversification Efforts and Key Contributors
Non-oil economic activities have played a pivotal role in the UAE's GDP, with trade activities contributing 16.1% to the non-oil GDP, followed by manufacturing (14.6%), financial and insurance (13.4%), construction (11.8%), and real estate (7.1%). H.E. Hanan Ahli, Managing Director of the FCSC, noted that these achievements are a testament to the UAE's stable financial system, effective policies, and adaptability to global challenges.
The ‘We the UAE 2031’ vision continues to guide the nation towards economic sustainability, reducing dependence on oil and promoting a knowledge-based, innovation-driven economy. The growth seen in key sectors reflects the UAE’s proactive approach to building a flexible and resilient economy that remains competitive on the global stage.
