Financial & insurance activities top non-oil economic activities with the fastest growth rate of 7.9 per cent due to the increase in the local credit to the private sector
Robust tourism inflows to the UAE lead to a 4.6 per cent growth in restaurant and hotel activities
Abu Dhabi, 9 September 2024:
H.E. Abdulla bin Touq Al Marri stated: “The preliminary estimates of the UAE’s GDP growth in the first quarter (Q1) of 2024, issued by the Federal Competitiveness and Statistics Centre (FCSC), once again underline the resilience and vitality of the national economy and exemplify its ability to continue on the path of sustainable growth. They also reflect the UAE’s commitment to fostering economic diversification focused on knowledge economy sectors, as the country’s real GDP reached AED 430 billion in Q1 2024, recording a remarkable growth of 3.4 per cent compared to the same period in 2023, while the non-oil GDP grew by 4 per cent compared to the same period last year”.
“Under the guidance of H.H Sheikh Mohammed bin Zayd Al Nahyan, President of the UAE, Ruler of Abu Dhabi, and the directives of H.H Sheikh Mohammed bin Rashed Al Maktoum, Vice President and Prime Minister of the UAE, Ruler of Dubai, the country adopted an innovative economic model that supports its future vision, along with effective national economic strategies, enhancing openness to the world, promoting partnerships, and transitioning towards an economic model based on flexibility and innovation,” H.E. Bin Touq added.
Furthermore, H.E Bin Touq highlighted that the positive results the national economy has achieved fall in line with the economic objectives of ‘We the UAE 2031’ vision, which includes raising the country’s GDP to AED 3 trillion by the next decade.
Hanan Ahli: GDP growth represents the flexibility of UAE’s economic sectors
H.E. Hanan Ahli, Managing Director of the Federal Competitiveness and Statistics Centre, said: “The financial and economic data and indicators endorsing the growth of the UAE’s GDP Q1 2024 reflect the resilience of the country’s vital economic sectors. It highlights the effectiveness of the concerted efforts to implement the directives of the wise leadership to enhance sustainable economic diversification, reduce dependence on oil, promote investments, and attract capital and innovative and emerging projects to the country.”
She added that the UAE’s advanced rankings in multiple global economic competitiveness indicators can be attributed to several factors, including the stability of the financial system, the strength of the national economy, and the effectiveness of economic legislation and policies applied in the country, besides their ability to adapt to changes and face regional and global challenges.
Non-oil economic activities showcase highest growth
Based on the data released by the Federal Competitiveness and Statistics Centre, financial and insurance activities have emerged as the leading non-oil economic sector contributing to the UAE’s GDP growth, with a remarkable growth of 7.9 per cent. This growth can be attributed to the significant increase in the local credit granted to the private sector, which led to a six per cent growth and positively impacting the rebound of non-oil economic activities. Following closely behind in the second place are transportation and storage activities, which saw a growth of 7.3 per cent. This growth was driven by a notable increase in the number of travellers at the country's airports during the first three months of this year, reaching 36.5 million travellers, a growth rate of 14.7 per cent compared to the same period last year. The UAE's ports have demonstrated exceptional performance during this time, with Dubai's international ports witnessing a 3.7 per cent growth in the number of containers handled, while Abu Dhabi's ports experienced a 36 per cent increase in cargo handling volume on an annual basis.
Ranking third, construction and building activities experienced a growth rate of 6.2 per cent in line with the several development projects initiated by the UAE government in early 2024. They saw a substantial rise in the government’s public capital expenditures, reaching AED 4.8 billion, compared to that of Q1 2023.
The restaurant and hotel sector secured the fourth spot with a 4.6 per cent growth during the first quarter of 2024 compared to the corresponding period in 2023. Moreover, the UAE emerged at the forefront of global tourism landscape, attracting a substantial number of tourists from around the world. In particular, Dubai witnessed a remarkable influx of 5.18 million international tourists, representing an 11 per cent increase as compared to the corresponding period in 2023. Abu Dhabi also maintained its exceptional performance in key tourism indicators, including the average hotel occupancy rates and revenue per available rooms.
Non-oil economic activities contribute significantly to non-oil GDP
Trade activities made the largest contribution to the non-oil GDP, accounting for 16.1 per cent. Manufacturing activities come in second at 14.6 per cent, with financial and insurance activities ranking third at a rate of 13.4 per cent. Construction and building activities contribute 11.8 per cent, followed by the real estate activities with a contribution of 7.1 per cent.
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