UAE's GDP hits AED 430 billion in Q1 2024

The UAE's GDP reached AED 430 billion in Q1 2024, recording a growth of 3.4 per cent compared to the same period in 2023, while the non-oil GDP grew by four per cent compared to the same period last year.

The Minister of Economy, Abdulla bin Touq Al Marri, said that the preliminary estimates of the UAE's GDP growth in the Q1 2024, issued by the Federal Competitiveness and Statistics Centre (FCSC), underline the resilience and vitality of the national economy.

Al Marri also emphasised that the national economy's positive results reinforce achieving the economic objectives of the "We the UAE 2031" vision, which includes raising the country's GDP to AED three trillion by the next decade.

Based on the data released by the Federal Competitiveness and Statistics Centre, financial and insurance activities have emerged as the leading non-oil economic sector contributing to the UAE's GDP growth, with a growth of 7.9 per cent, attributed to the significant increase in the local credit granted to the private sector, which led to a six per cent growth and positively impacted the rebound of non-oil economic activities.

Following in the second place are transportation and storage activities, which grew 7.3 per cent, driven by a notable increase in the number of travellers at the country's airports during the first three months of this year, reaching 36.5 million travellers, a growth rate of 14.7 per cent compared to the same period last year.

The UAE's ports have demonstrated exceptional performance during this time, with Dubai's international ports witnessing a 3.7 per cent growth in the number of containers handled, while Abu Dhabi's ports experienced a 36 per cent increase in cargo handling volume on an annual basis.

Ranking third, construction and building activities experienced a growth rate of 6.2 per  cent, which aligns with the several development projects initiated by the UAE government in early 2024. They saw a substantial rise in the government's public capital expenditures, reaching AED4.8 billion, compared to that of Q1 2023.

The restaurant and hotel sector secured the fourth spot with a 4.6 per cent growth during the first quarter of 2024 compared to the corresponding period in 2023.

Dubai witnessed an 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.