UAE's Economy Expands By 3.6%, Securing Fifth Place In Global GDP Growth Index

Abdullah bin Touq Al Marri, Minister of Economy, announced that preliminary data for the UAE’s 2023 GDP indicates positive growth trends across various sectors crucial to the national economy. According to the Federal Competitiveness and Statistics Centre, the GDP stood at AED1.68 trillion at constant prices, marking a 3.6 percent increase from 2022. The non-oil GDP reached AED1.25 trillion, reflecting a 6.2 percent growth compared to the previous year.

"These figures solidify the UAE’s position as the fifth-largest economy globally in terms of real GDP growth index. Moreover, the UAE ranks among the top 10 economies globally across various competitiveness indicators tied to GDP," said Al Marri. He added that the national economy continues to perform well under the leadership of President His Highness Sheikh Mohamed bin Zayed Al Nahyan and directives from His Highness Sheikh Mohammed bin Rashid Al Maktoum.

By the end of 2023, non-oil sectors contributed 74.3 percent to the country’s GDP, marking a record-breaking growth of 2.5 percent compared to 2022. This milestone supports developmental objectives and fosters a diversified and sustainable national economy. Al Marri highlighted the implementation of resilient and ambitious economic policies and legislation to address global challenges.

Hanan Mansoor Ahli, Executive Director of the Competitiveness Sector at the Federal Competitiveness and Statistics Authority, emphasised that the growth of the country’s GDP highlights the success of various economic sectors in implementing wise leadership directives. These directives prioritise economic diversification, drive investments, and attract capital, entrepreneurs, and innovative projects.

In 2023, various economic sectors recorded substantial growth. Financial activities and insurance led with a growth of 14.3 percent, ranking first among the fastest-growing sectors in the UAE’s GDP. Transport and storage activities followed with an 11.5 percent growth, driven by a significant increase in airport passengers. The total number of international visitors reached approximately 31.5 million, marking a 25 percent increase compared to 2022.

Construction and building activities witnessed an 8.9 percent growth, the highest in the past decade, while real estate activities achieved a growth rate of 5.9 percent. The residency and food services sector grew by 5.5 percent, reflecting an increase in international visitors in 2023. Hotel guests totalled 28 million, an 11 percent increase compared to 2022.

Current Prices and Global Competitiveness

At current prices, the GDP reached AED1.88 trillion in 2023, recording a growth rate of 2.3 percent. Non-oil GDP at current prices amounted to AED1.43 trillion, achieving a growth rate of 9.9 percent and an increase of AED128 billion compared to 2022.

The UAE has further fortified its position among the top 10 countries globally in various GDP-related competitiveness indicators. The country ranked fifth worldwide in the Real Economic Growth Rate Index and sixth in GDP (PPP) per capita in the IMD World Competitiveness Yearbook 2023. Additionally, it achieved sixth place globally in the GNI Index in the UNDP Human Development Index Report for 2024.

With inputs from WAM