The UAE economy experienced a 3.6% growth during the first half of 2024, reaching a GDP of Dh879.6 billion. Notably, this growth was led by the transportation, construction, and information and communication technology (ICT) sectors.
Non-Oil Sector Fuels UAE Economy
According to the Federal Competitiveness and Statistics Centre (FCSC), the non-oil sector expanded by 4.4% year-on-year, reaching Dh660 billion. Impressively, its contribution to the UAE’s GDP rose to 75%, reflecting its critical role.
Meanwhile, the UAE’s nominal GDP at current prices amounted to Dh981 billion, achieving a 5.6% growth. Additionally, the non-oil GDP value increased to Dh749 billion, showcasing a remarkable growth rate of 6.8%.
Strategic Sectors See Consistent Growth
Minister of Economy Abdullah bin Touq Al Marri highlighted the strong performance of key sectors such as transportation, storage, financial activities, and tourism. Furthermore, he noted the significant impact of development projects launched earlier this year.
“Tourism activities experienced exceptional growth, further strengthening the UAE’s position as a global economic hub,” Al Marri stated.
The International Monetary Fund (IMF) recently increased its UAE GDP growth forecast for 2024 to 5.1%, up from 4.2%. Similarly, the International Institute of Finance (IIF) projected that the UAE would lead regional growth in 2024 and 2025.
Transportation and Tourism Lead Sectoral Growth
Preliminary FCSC estimates revealed transportation and storage activities achieved an impressive 8.4% growth rate during H1 2024. Additionally, financial and insurance activities grew by 7.6%, and construction expanded by 7.3%. The ICT sector also recorded a strong 5.3% growth.
Tourism saw remarkable advancements, with the restaurants and hotels sector growing by 5.1%. Furthermore, hotel revenues surpassed Dh24.6 billion, marking a 7% increase. Meanwhile, the number of hotel guests reached 15.3 million, a 10.5% rise across the seven emirates.
UAE Economy and Vision Gains Momentum
Hanan Mansour Ahli, FCSC director, emphasized the UAE’s focus on economic diversification and sustainability. “Our forward-looking strategies ensure the UAE remains a leader among diverse and dynamic global economies,” she stated.
The UAE continues its progress toward the ‘We the Emirates 2031’ vision, aiming for a Dh3 trillion GDP by the next decade.
