a day ago
UAE economy grows 4 pct in 2024, driven by non-oil sectors
DUBAI, June 15 (Xinhua) -- The United Arab Emirates (UAE) recorded a 4 percent real GDP growth in 2024, reaching 1.77 trillion dirhams (about 482 billion U.S. dollars), fueled primarily by robust expansion in non-oil sectors, the Ministry of Economy announced on Sunday.
Non-oil activities surged by 5 percent to 1.34 trillion dirhams, accounting for 75.5 percent of total GDP. In contrast, the oil sector contributed 434 billion dirhams.
Abdulla bin Touq Al Marri, UAE's economy minister, said the latest figures highlight progress toward transitioning to a knowledge-based, sustainable economy. He attributed the performance to modern economic policies centered on innovation, technology, and business environment development.
"The UAE continues to move steadily toward the goals of the 'We the UAE 2031' vision, which aims to raise GDP to 3 trillion dirhams and reinforce the country's position as a global hub for the new economy," he added.
Several key sectors recorded notable growth during the year. The transport and storage sector led the way with a 9.6 percent increase, driven by a 10 percent year-on-year rise in passenger traffic in airports, which handled 147.8 million travelers.
The construction sector expanded by 8.4 percent due to increased investment in infrastructure, while financial and insurance activities grew by 7 percent, hospitality and food services by 5.7 percent, and real estate by 4.8 percent.
In terms of contribution to non-oil GDP, the trade sector ranked first with 16.8 percent, followed by manufacturing (13.5 percent), financial and insurance activities (13.2 percent), construction (11.7 percent), and real estate (7.8 percent).
Commenting on the data, Mazen Al-Obaid, an economics professor at UAE University, told Xinhua that the growth reflects the effectiveness of government efforts to build a diversified economy based on advanced productive and service sectors.
"What distinguishes this growth is that it is driven by real economic activity, not just temporary fiscal stimulus, which enhances the country's resilience to global market volatility and energy price fluctuations," he noted.
He added that the UAE's focus on innovation, digital infrastructure, and investment climate makes it a competitive economic model, urging continued investment in national talent and high-value industries to ensure sustainable growth.
