UAE Economy Expands by 3.6% in H1 2024 with Strong Non-Oil Sector Growth

The economic growth rate of the UAE in the first half of 2024 was significantly impressive mainly due to the non-oil sectors. Using preliminary data from the Federal Competitiveness and Statistics Centre (FCSC), the country’s real Gross Domestic Product (GDP) for the year amounted to AED 879, 6 billion or $239. 5 billion, a year-on-year growth of 3. 6%.

The non-oil GDP constituted AED660 billion or $180 billion in accordance with a continuous growth rate of 4.4%. This reduced the contribution of oil sector to 25%, while that of the non-oil sector to 75%, this was a show of the UAE government’s strategic focus on diversification.

The nominal GDP, current price, was AED 981billion ($ 267billion) ,and it increased by 5.6%. Non-oil GDP estimated at current prices stood at AED749 billion ($204 billion) recording an increase of 6.8 % on H1 2023.

Key Sectors Driving Growth

Thus, the sectors of transportation and storage turned out to be the most successful throughout the year and reached a 8.4% growth. Financial and insurance activities came second at 7.6 %, construction sector the third at 7.3 percent. The Information and communication activities grew by 5.3% while restaurants and hotels, which has been boosted by a rise in tourism, was up by 5.1%.

The non-oil GDP was contributed mainly by trade and manufacturing activities, which contributed 16.5% and 15% respectively, however there were several other important contributors which include the financial activities, construction as well as in the real estate .

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The achievements were credited to the UAE leadership and the advanced planning thus in line with the We the UAE 2031. The plan is to increase the country’s GDP to AED 3 trillion ($817 billion) by the next decade.

Hanan Mansour Ahli, the Managing Director of FCSC, stressed the UAE’s economic liberalisation and diversification to reflect the country as a proactive player in the global economy.

After years of diversification and stronger sectoral connections, the UAE is expected to build stable and inclusive economic growth in the future.