ABU DHABI: The preliminary estimates of the UAE’s Gross Domestic Product (GDP) growth for the first quarter of 2024, as reported by the Federal Competitiveness and Statistics Centre (FCSC), reveal a robust performance characterised by a real GDP of AED430 billion and a commendable growth rate of 3.4 per cent compared to the first quarter of 2023.
The growth is indicative of the UAE’s strategic initiatives and strong economic fundamentals, underpinned by a diversification strategy that emphasises sectors beyond oil.
Abdulla bin Touq Al Marri, the Minister of Economy, praised these preliminary findings, highlighting the growth of non-oil GDP by four per cent as a critical indicator of the nation’s economic health.
The “We the UAE 2031” vision presents ambitious economic objectives, aiming to elevate the nation’s GDP to AED3 trillion within the next decade.
The current statistics are a testament to the effectiveness of the strategic measures aimed at diversifying the economy and reducing dependency on hydrocarbons, thus enhancing resilience against global economic fluctuations.
Hanan Ahli, Managing Director of the FCSC, reinforced the significance of these findings, pointing to the resilience of key sectors within the UAE economy. The data reflects the proactive steps taken to implement the directives of leadership, focusing on sustainable economic diversification, attracting foreign investment, and nurturing innovative ventures.
Growth drivers
The country’s improved rankings in various global economic competitiveness indices can be attributed to its stable financial system, judicious economic policies, and the ability to swiftly adapt to changes in the regional and global economic environment.
Among the sectors contributing to the growth, financial and insurance activities emerged as a leader, with an impressive growth rate of 7.9 per cent. The expansion was primarily driven by a substantial increase in local credit extended to the private sector, which facilitated a 6 per cent rise in non-oil economic activities.
Transportation and storage also delivered significant contributions, recording a 7.3 per cent growth rate propelled by a surge in traveler numbers at UAE airports, totaling 36.5 million during the first quarter—an increase of 14.7 per cent from the previous year.
The performance of the UAE’s ports further exemplified this trend, with Dubai’s international ports and Abu Dhabi’s cargo handling volumes reflecting notable year-on-year growth.
Moreover, construction and building activities fueled further economic expansion with a growth rate of 6.2 per cent, correlated with the UAE government’s initiation of several large-scale public projects and a rise in public capital expenditures, which reached AED4.8 billion.
Attracting tourists
The hospitality sector, comprising restaurants and hotels, reported a 4.6 per cent growth, positioning the UAE as an emerging global tourism hub that continues to attract an increasing number of international visitors.
Dubai witnessed a remarkable influx of 5.18 million international tourists, representing an 11 per cent increase compared to the corresponding period in 2023. Abu Dhabi also maintained its exceptional performance in key tourism indicators, including the average hotel occupancy rates and revenue per available rooms.
Trade activities made the largest contribution to the non-oil GDP, accounting for 16.1 per cent. Manufacturing activities come in second at 14.6 per cent, with financial and insurance activities ranking third at a rate of 13.4 per cent.
Construction and building activities contribute 11.8 per cent, followed by real estate activities with a contribution of 7.1 per cent.
