The United Arab Emirates' real gross domestic product (GDP) experienced a 3.4 percent year-on-year growth, reaching Dh430 billion in the first quarter of 2024, highlighting the resilience and vitality of the national economy.
The non-oil sector exhibited a more dynamic growth, expanding by 4.0 percent during the quarter compared to the same period in 2023, in line with the economic goals outlined in the 'We the UAE 2031' vision, which aims to elevate the country's GDP to Dh3 trillion by the next decade. The non-oil sector's growth was primarily driven by financial and insurance activities, which recorded the highest growth rate of 7.9 percent due to increased local credit to the private sector, according to preliminary estimates released by the Federal Competitiveness and Statistics Centre (FCSC).
Abdulla bin Touq Al Marri, Minister of Economy, emphasized that this impressive performance underscores the resilience and vitality of the national economy and demonstrates its capacity to sustain growth. He also noted that it reflects the UAE's commitment to economic diversification, particularly in knowledge-based sectors.
FCSC data indicated that robust tourism inflows contributed to a 4.6 percent growth in restaurant and hotel activities. The minister highlighted that the UAE's innovative economic model, supported by effective national strategies, enhances its openness to the world, fosters partnerships, and transitions towards a flexible and innovative economic framework.
Hanan Ahli, Managing Director of the FCSC, stated that the growth in the UAE's GDP for Q1 2024 underscores the resilience of the country's key economic sectors. She attributed the UAE's high rankings in global economic competitiveness indicators to factors such as financial system stability, economic strength, and effective economic legislation and policies, along with their adaptability to changes and ability to address regional and global challenges.
The FCSC attributed the growth in financial and insurance activities to the significant increase in local credit to the private sector, which led to a 6 percent growth and positively impacted non-oil economic activities. Transportation and storage activities followed closely with a 7.3 percent growth, driven by a 14.7 percent increase in airport travelers, reaching 36.5 million in the first quarter of 2024.
UAE ports also showed exceptional performance, with Dubai's international ports handling 3.7 percent more containers and Abu Dhabi's ports experiencing a 36 percent increase in cargo volume. Construction and building activities grew by 6.2 percent, supported by government development projects and a substantial rise in public capital expenditures to Dh4.8 billion.
The restaurant and hotel sector grew by 4.6 percent, securing the fourth spot, while Dubai attracted 5.18 million international tourists, an 11 percent increase. Trade activities contributed the most to the non-oil GDP at 16.1 percent, followed by manufacturing at 14.6 percent, financial and insurance at 13.4 percent, construction and building at 11.8 percent, and real estate at 7.1 percent.
