UAE's GDP Hits AED 430 Billion In Q1 2024 Highlighting Economic Resilience

Abdulla bin Touq Al Marri, UAE Minister of Economy, highlighted the UAE's robust economic performance in Q1 2024. Preliminary estimates from the Federal Competitiveness and Statistics Centre (FCSC) show a 3.4 percent growth in real GDP, reaching AED430 billion. Non-oil GDP also saw a 4 percent increase compared to the same period last year.

Hanan Ahli, Managing Director of the FCSC, noted that the UAE's economic resilience is evident in its advanced global rankings. She attributed this to the stability of the financial system, strong national economy, and effective economic policies. These factors have enabled the country to adapt to regional and global challenges.

The financial and insurance sectors led non-oil economic growth with a 7.9 percent increase. This was driven by a significant rise in local credit granted to the private sector, which grew by six percent. This boost positively impacted non-oil economic activities.

Transportation and storage activities followed closely with a 7.3 percent growth. The number of travellers at UAE airports reached 36.5 million in Q1 2024, marking a 14.7 percent increase from last year. Dubai's international ports saw a 3.7 percent rise in container handling, while Abu Dhabi's ports experienced a 36 percent increase in cargo volume.

The construction sector ranked third with a 6.2 percent growth rate due to several development projects initiated by the government early this year. Public capital expenditures rose to AED4.8 billion compared to Q1 2023.

Tourism and Trade

The restaurant and hotel sector grew by 4.6 percent in Q1 2024 compared to the same period last year. Dubai attracted 5.18 million international tourists, an 11 percent increase from Q1 2023. Abu Dhabi also performed well in key tourism indicators like hotel occupancy rates and revenue per available room.

Trade activities made the largest contribution to non-oil GDP at 16.1 percent, followed by manufacturing at 14.6 percent and financial and insurance activities at 13.4 percent.

Future Vision

Bin Touq emphasised that these positive results align with achieving the "We the UAE 2031" vision's economic objectives, which include raising GDP to AED3 trillion by the next decade.

"Under the guidance of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, we adopted an innovative economic model," Bin Touq stated.

This model supports future visions through effective national strategies, enhancing openness, promoting partnerships, and transitioning towards flexibility and innovation-based economy.

The UAE's ports have shown exceptional performance during this period as well.

Real estate activities contributed 7.1 percent to non-oil GDP while construction accounted for 11.8 percent.

The UAE continues its path towards sustainable growth through strategic diversification efforts aimed at reducing oil dependence while promoting investments and attracting innovative projects.

With inputs from WAM