UAE economy grew 4% in 2024 to Dh1.78 trillion on non-oil boost

The UAE’s economy grew by 4 per cent last year, driven by a strong expansion in its non-oil sector as the country continues to diversify.

The country's real gross domestic product reached Dh1.776 trillion ($484.7 billion), the UAE’s Ministry of Economy said in a statement on Sunday, quoting data from the Federal Competitiveness and Statistics Centre.

The non-oil economy grew by 5 per cent annually to Dh1.34 trillion, accounting for more than 75 per cent of the country's economic activity, while oil-related activities contributed Dh434 billion to the overall economy.

“With each milestone, we are moving closer to achieving the UAE’s target of raising GDP to Dh3 trillion by the next decade, while reinforcing its position as a global hub for the new economy,” said Abdullah bin Touq, Minister of Economy.

The UAE, the Arab world's second-largest economy, has been focusing heavily on diversifying its economy away from oil by developing sectors such as technology, manufacturing, tourism, trade and innovation.

The country has introduced several reforms including longer-stay residence visas as well as new visa categories to attract more talent.

The UAE’s economy grew by 3.9 per cent in 2024, the Central Bank reported in April, with the non-oil growth up 4.6 per cent. The banking regulator expects the country’s GDP to expand at 4.7 per cent this year, with non-oil growth at 5.1 per cent.

Last week, the World Bank also upgraded its growth forecast for the UAE to 4.6 per cent this year, up from its 4 per cent projection in January, on expanding non-oil activity and phase-out of the Opec+ oil production cuts.

A sharp increase in the UAE's non-oil foreign trade has also supported the country's consistent economic growth.

In the first three months of this year, the Emirates' non-oil foreign trade increased by 18.6 per cent on an annual basis to Dh 835 billion, far exceeding the global average of 2 to 3 per cent growth, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said in a post on X on Sunday.

“Our non-oil exports grew exceptionally by 41 per cent on an annual basis,” he said. “Our goal is to achieve non-oil foreign trade for the UAE amounting to Dh4 trillion by 2031 … we will reach it within two years (four years before the scheduled date).”

The UAE's non-oil trade hit a record Dh3 trillion last year − up 14.6 per cent year-on-year, boosted by its Comprehensive Economic Partnership Agreement programme. Deals that the UAE has already signed with nations from Colombia to Australia have contributed Dh135 billion to the country's non-oil trade, an increase of 42 per cent compared with the previous year,

The country aims to boost its GDP to $800 billion by 2030, with a target of more than $1.1 trillion in total non-oil trade by 2031.

Last year, the UAE’s transport and storage sector emerged as the fastest-growing contributor to GDP, recording a 9.6 per cent year-over-year growth, the economy ministry said. This was primarily driven by the “exceptional” performance of airports in the UAE, which handled 147.8 million passengers, an increase of approximately 10 per cent.

The building and construction sector followed with an 8.4 per cent growth rate, supported by “substantial investments in urban infrastructure”, the Ministry of Economy said.

Financial and insurance activities expanded by 7 per cent, while the hospitality sector, encompassing hotels and restaurants, rose by 5.7 per cent. The real estate sector recorded a 4.8 per cent growth.

The non-oil sectors that contributed the most to the UAE’s GDP include trade (16.8 per cent), manufacturing (13.5 per cent), and financial and insurance activities (13.2 per cent).

Construction and building contributed 11.7 per cent, while real estate activities accounted for 7.8 per cent of the non-oil GDP, the ministry said.