UAE’s GDP Grows By 3.6% In H1 2024

ABU DHABI, (UrduPoint / Pakistan Point News / WAM - 30th Dec, 2024) Abdulla bin Touq Al Marri, Minister of Economy, has asserted that the preliminary estimates of the UAE's GDP in the first half of 2024, issued by the Federal Competitiveness and Statistics Centre, reflect remarkable economic growth and competitiveness, solidifying the country's position as a leading economic power for business and investment.

Bin Touq explained that the value of the UAE's real GDP (at constant prices) reached AED879.6 billion in the first half of 2024, recording a notable increase of 3.6 percent. Meanwhile, the value of the non-oil GDP during the same period was approximately AED660 billion, with a growth of 4.4 percent, compared to the same period last year. With this, the contribution of non-oil sectors to the country's GDP has reached 75 percent.

The estimates also indicated that the UAE's nominal GDP (at current prices) during the first half of 2024 reached approximately AED981 billion, registering a growth rate of 5.6 percent. Meanwhile, the value of non-oil GDP at current prices during the same period rose to about AED749 billion, with a growth rate reaching 6.8 percent, compared to the first half of 2023.

Bin Touq said, "The achievements highlight the visionary leadership of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, and strategic guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai. The UAE has successfully laid the foundation for a sustainable, diversified economy driven by innovation and knowledge, aligning with global trends while maintaining its position as a premier economic hub regionally and internationally.

"This progress paves the way for achieving the economic goals outlined in 'We the UAE 2031' vision, including raising the UAE's GDP to AED3 trillion within the next decade."

The Minister of Economy stated that the robust growth of non-oil sectors during the first half of 2024 reflects the dynamic nature of the UAE's economy and its capacity to seize emerging opportunities across multiple fields.

Bin Touq noted strong performance in key sectors, including transport, storage, finance, and construction, fuelled by initiatives to promote entrepreneurship, trade, and investment, as well as major developmental projects launched earlier this year.

Tourism also recorded sustained growth, further reinforcing the UAE's standing as a global tourism hub.

Additionally, the Minister underscored the importance of continued efforts and sector-wide integration to drive sustainable and inclusive economic progress.

Hanan Mansour Ahli, Managing Director of the Federal Competitiveness and Statistics Centre (FCSC), said, "The GDP figures for the first half of this year, published by the FCSC, reaffirm the UAE's dedication to implementing its policy of economic openness as a consistent national strategy. By leveraging its capabilities, the UAE aims to strengthen its economic standing on both regional and global levels as one of the most dynamic and diversified economies, driven by forward-thinking strategies and sustainable diversification plans."

According to the initial estimates released by FCSC, transportation and storage activities led economic growth in the first half of 2024, with an impressive 8.4 percent growth rate. Financial and insurance activities ranked second with a growth rate of 7.6 percent, followed closely by construction activities at 7.3 percent. Information and communication activities ranked fourth, achieving a growth rate of 5.3 percent.

The restaurants and hotels sector secured the fifth spot, achieving 5.1 percent growth in the first half of 2024, fuelled by exceptional tourism activity across the country. Hotel revenues exceeded AED24.6 billion during this period, registering a 7 percent increase, while the total number of hotel guests across the UAE's seven emirates reached around 15.3 million, representing a 10.5 percent growth.

Trade activities emerged as the largest contributor to the UAE's non-oil GDP, accounting for 16.5 percent, followed by manufacturing at 15 percent. Financial and insurance activities took third place with a 12.5 percent contribution, while construction accounted for 11.6 percent. Real estate activities ranked fifth, contributing 7.6 percent.