UAE's GDP grows by 3.6 per cent in the first half of 2024

> Bin Touq: The non-oil GDP grew by 4.4 per cent in the first half of 2024, paving the way for achieving the economic goals outlined in ‘We the UAE 2031’ vision.

Non-oil economic activities recorded positive results in the first half of 2024, the most notable of which are:

Transport and storage activities have emerged as the fastest growing non-oil economic sectors in the UAE’s GDP, achieving a growth rate of 8.4 per cent.

The financial activities and insurance sector ranked second, achieving a growth rate of 7.6 per cent, and contributes 12.5 per cent to the UAE’s non-oil GDP.

The construction and building activities ranked third with a growth rate of 7.3 per cent, while the Information and Communication activities ranked fourth with a growth rate of 5.3 per cent.

Abu Dhabi, 30 December 2024: His Excellency Abdulla bin Touq Al Marri, Minister of Economy, has asserted that the preliminary estimates of the UAE’s GDP in the first half of 2024, issued by the Federal Competitiveness and Statistics Centre, reflect remarkable economic growth and competitiveness, solidifying the country’s position as a leading economic power and a premier destination for business and investment.

Bin Touq explained that the value of the UAE’s real GDP (at constant prices) reached AED 879.6 billion in the first half of 2024, recording a notable increase of 3.6 per cent. Meanwhile, the value of the non-oil GDP during the same period was approximately AED 660 billion, with a growth of 4.4 per cent, compared to the same period last year. With this, the contribution of non-oil sectors to the country’s GDP has reached 75 per cent.

The estimates also indicated that the nominal GDP (at current prices) of the UAE during the first half of 2024 reached approximately AED 981 billion, registering a growth rate of 5.6 per cent. Meanwhile, the value of non-oil GDP at current prices during the same period rose to about AED 749 billion, with a growth rate reaching 6.8 per cent, compared to the first half of 2023.

Bin Touq said: “The achievements highlight the visionary leadership of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and strategic guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE 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 AED 3 trillion within the next decade.”

The Minister of Economy stated that the robust growth of non-oil sectors during the first half of 2024 reflects the dynamic nature of the UAE’s economy and its capacity to seize emerging opportunities across multiple fields.

Bin Touq noted strong performance in key sectors, including transport, storage, finance, and construction, fueled by initiatives to promote entrepreneurship, trade, and investment, as well as major developmental projects launched earlier this year. Tourism also recorded sustained growth, further reinforcing the UAE’s standing as a global tourism hub.

Additionally, the Minister underscored the importance of continued efforts and sector-wide integration to drive sustainable and inclusive economic progress.

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.”

Key Growth Sectors

According to the initial estimates released by FCSC, transportation and storage activities led economic growth in the first half of 2024, with an impressive 8.4 per cent growth rate. Financial and insurance activities ranked second with a growth rate of 7.6 per cent, followed closely by construction activities at 7.3 per cent. Information and communication activities ranked fourth, achieving a growth rate of 5.3 per cent.

The restaurants and hotels sector secured the fifth spot, achieving 5.1 per cent growth in the first half of 2024, fueled by exceptional tourism activity across the country. Hotel revenues exceeded AED 24.6 billion during this period, registering a 7 per cent increase, while the total number of hotel guests across the UAE’s seven emirates reached around 15.3 million, representing a 10.5 per cent growth.

Key Contributors to Non-Oil GDP

Trade activities emerged as the largest contributor to the UAE’s non-oil GDP, accounting for 16.5 per cent, followed by manufacturing at 15 per cent. Financial and insurance activities took third place with a 12.5 per cent contribution, while construction accounted for 11.6 per cent. Real estate activities ranked fifth, contributing 7.6 per cent.