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UAE economy grows 3.6% in H1, led by transportation, construction and ICT sectors

Contribution of non-oil sectors to the country’s economy reaches 75%

Published: Sun 29 Dec 2024, 9:03 PM

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The UAE economy grew 3.6 per cent during the first half of 2024 as the country’s total GDP reached Dh879.6 billion, led by non-oil sectors such as transportation, construction, and ICT sectors.

According to figures released by the Federal Competitiveness and Statistics Centre (FCSC) on Sunday, the non-oil sector grew 4.4 per cent year-on-year to Dh660 billion during the January-June 2024 period, strengthening the country’s position as a fast-growing global economic powerhouse. The non-oil sector’s contribution to the country’s GDP reached 75 per cent.

The value of the UAE’s nominal GDP (at current prices) amounted to about Dh981 billion during the first half of 2024, recording a growth of 5.6 per cent, while the value of non-oil GDP at current prices increased during the same period to about Dh749 billion, with a growth rate of 6.8 per cent.

Abdullah bin Touq Al Marri, Minister of Economy, said the strong performance of non-oil sectors during the first half of 2024 reflected the vitality of the national economy and its ability to invest in promising opportunities in various fields.

He elaborated that many strategic sectors, such as transportation, storage, financial activities, construction and building, recorded remarkable growth rates thanks to the stimulation of entrepreneurship, trade and investment activities, in addition to the development projects that were launched at the beginning of the year, as well as tourism activities, which witnessed continuous growth leaps, which strengthened the position of the UAE.

The International Monetary Fund (IMF) in October hiked the UAE’s GDP growth forecast for 2024 to 5.1 per cent compared to 4.2 per cent earlier in April on the back of strong growth in the non-oil sectors.

The International Institute of Finance (IIF), a global think-tank, also projected that the UAE GDP growth will top in the region in 2024 and 2025.

Al Marri added that the latest figures reflect the country’s position as a leading economic destination at the regional and international levels, which enhances access to the economic targets of the ‘We the Emirates 2031’ vision, including increasing the country’s GDP to Dh3 trillion by the next decade.

Hanan Mansour Ahli, director of the FCSC, said the latest figures confirm the continuation of the UAE’s efforts to activate the policy of economic openness and employ all capabilities towards consolidating its economic position at the regional and global levels, as one of the most diverse and growing economies in the region, by adopting stimulating strategies and forward-looking economic plans based on sustainable economic diversification.

According to preliminary estimates issued by the FCSC, transportation and storage activities topped the list of the sectors during the first half of 2024, with a growth rate of 8.4 per cent, followed by financial and insurance activities (7.6 per cent), construction and building (7.3 per cent) and information and communications (5.3 per cent).

The restaurants and hotels sector came in fifth place, recording a growth of 5.1 per cent, driven by unprecedented activity in tourism activities as hotel establishments’ revenues rose to more than Dh24.6 billion, achieving a growth of 7 per cent. While the number of guests in hotel establishments in the seven emirates increased to about 15.3 million guests, with a growth rate of 10.5 per cent.



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