UAE's 3.6% GDP Growth For 2023 Cements Its Position As 5th Largest Global Economy

Abdullah bin Touq Al Marri, the UAE Minister of Economy, recently announced the preliminary data for the UAE's Gross Domestic Product (GDP) for the year 2023, revealing positive growth trends across several key indicators. This data, provided by the Federal Competitiveness and Statistics Centre, underscores the nation's robust economic performance and its standing on the global stage.

In a detailed breakdown, the GDP of the UAE at constant prices for 2023 was reported to be Dh1.68 trillion, showcasing a 3.6% increase from the previous year. Notably, the non-oil GDP saw an impressive surge, reaching Dh1.25 trillion, which is a 6.2% growth compared to 2022. These figures not only highlight the UAE's economic resilience but also its strategic pivot towards diversification and innovation.

"These figures solidify the UAE's position as the fifth-largest economy globally in terms of real GDP growth index. Additionally, the UAE ranks among the top 10 economies globally across various competitiveness indicators tied to GDP," stated Abdullah bin Touq. This achievement reflects the nation's ongoing commitment to fostering a diversified, sustainable economy, in line with the 'We the UAE 2031' vision which aims to elevate the country's GDP to Dh3 trillion within the next decade.

By the end of 2023, non-oil sectors contributed 74.3% to the country's GDP, marking a record-breaking growth of 2.5% from 2022. This milestone reaffirms the UAE's developmental objectives towards a diversified and sustainable national economy. The country's implementation of resilient economic policies and legislation has been pivotal in addressing global challenges, promoting economic diversification, and supporting emerging sectors.

Hanan Mansoor Ahli, Executive Director of the Competitiveness Sector at the Federal Competitiveness and Statistics Authority, highlighted the significant outcomes across various economic levels. "Our national economy is steadily advancing toward achieving further growth and producing significant outcomes across various levels. Guided by forward-looking insights, the focus is on non-oil, new and emerging sectors," Ahli noted, indicating a bright future for the UAE's economic landscape.

In 2023, various economic sectors exhibited remarkable growth, with financial activities and insurance leading the charge at a growth rate of 14.3%. Transport and storage activities followed closely, achieving an 11.5% growth, buoyed by a surge in airport passengers. The construction and building activities also saw an 8.9% growth, the highest in the past decade, while real estate activities grew by 5.9 percent. The residency and food services sector, reflecting the increase in international visitors, grew by 5.5 percent.

At current prices, the UAE's GDP reached Dh1.88 trillion in 2023, marking a 2.3% growth. The non-oil GDP at current prices stood at Dh1.43 trillion, witnessing a significant 9.9% growth and an increase of Dh128 billion compared to 2022. This economic development has further enhanced the UAE's global standing, as evidenced by its rankings in various GDP-related global 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. Furthermore, the UAE secured the sixth place globally in the GNI Index, in the UNDP Human Development Index Report 2024, showcasing its economic vitality and strategic positioning on the world stage.

The UAE's economy, under the leadership of President His Highness Sheikh Mohamed bin Zayed Al Nahyan and the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, continues to exhibit strong performance and growth. These accomplishments underscore the nation's progress in achieving its ambitious 'We the UAE 2031' vision and its transition towards a new economic model centered around diversity and innovation.