According to Economy Minister Abdulla bin Touq Al Marri, the Federal Competitiveness and Statistics Centre’s preliminary estimates of the UAE’s GDP for the first half of 2024 show impressive economic growth and competitiveness, reaffirming the nation’s standing as a major economic power for investment and business.
The real GDP of the United Arab Emirates (at constant prices) increased by 3.6 percent to AED879.6 billion in the first half of 2024, according to Bin Touq. In contrast, the non-oil GDP at the same time was worth about AED 660 billion, representing a 4.4% increase over the same period the previous year. By doing this, the non-oil sectors now account for 75% of the nation’s GDP.
Additionally, according to the estimations, the UAE’s nominal GDP (at current prices) grew by 5.6% to reach about AED981 billion in the first half of 2024. Comparing the same time to the first half of 2023, the non-oil GDP at current prices increased to almost AED749 billion, with a growth rate of 6.8%.
Bin Touq said, “The achievements highlight the visionary leadership of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, and strategic guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai. The UAE has successfully laid the foundation for a sustainable, diversified economy driven by innovation and knowledge, aligning with global trends while maintaining its position as a premier economic hub regionally and internationally.
“This progress paves the way for achieving the economic goals outlined in ‘We the UAE 2031’ vision, including raising the UAE’s GDP to AED3 trillion within the next decade.”
According to the Minister of Economy, the UAE’s economy is dynamic and capable of grabbing new possibilities in a variety of industries, as seen by the strong growth of non-oil sectors in the first half of 2024.
Strong performance in important industries, such as transportation, storage, finance, and construction, was highlighted by Bin Touq. These sectors were fueled by major development projects that were started earlier this year as well as steps to encourage entrepreneurship, trade, and investment. Additionally, tourism saw steady growth, enhancing the UAE’s reputation as a major international travel destination.
The Minister also emphasized the significance of ongoing initiatives and sector-wide cooperation in promoting equitable and sustainable economic growth.
Hanan Mansour Ahli, Managing Director of the Federal Competitiveness and Statistics Centre (FCSC), said, “The GDP figures for the first half of this year, published by the FCSC, reaffirm the UAE’s dedication to implementing its policy of economic openness as a consistent national strategy. By leveraging its capabilities, the UAE aims to strengthen its economic standing on both regional and global levels as one of the most dynamic and diversified economies, driven by forward-thinking strategies and sustainable diversification plans.”
According to the FCSC’s preliminary estimates, transportation and storage operations dominated economic growth in the first half of 2024 with an astounding 8.4 percent growth rate. Financial and insurance activities came in second with a growth rate of 7.6 percent, closely followed by building activities at 7.3 percent. At a growth rate of 5.3%, information and communication activities came in fourth.
With 5.1 percent growth in the first half of 2024, the restaurants and hotels sector took fifth place, driven by the nation’s booming tourism industry. During this time, hotel revenues climbed by 7% to over AED24.6 billion, while the total number of hotel visitors in the seven emirates of the United Arab Emirates reached over 15.3 million, a growth of 10.5%.
Trade accounted for 16.5 percent of the UAE’s non-oil GDP, making it the greatest contributor. Manufacturing came in second at 15 percent. Construction contributed 11.6 percent, while financial and insurance activities came in third with 12.5 percent. With a 7.6 percent contribution, real estate operations came in sixth.