The UAE’s economy grew 3.4 per cent year-on-year in the first quarter of 2024 to reach $117.1bn (Dhs430bn), according to the Federal Competitiveness and Statistics Centre, with non-oil GDP growing 4 per cent YoY during the period under review.
“The country adopted an innovative economic model that supports its future vision, along with effective national economic strategies, enhancing openness to the world, promoting partnerships, and transitioning towards an economic model based on flexibility and innovation,” Abdulla bin Touq Al Marri, the UAE Minister of Economy said in a statement.
Al-Marri emphasised that the growth reinforces achieving the economic objectives of the “We the UAE 2031” vision, which includes raising the country’s GDP to Dhs3tn by the next decade.
The preliminary data from the statistics authority shows that financial and insurance, trade activities and manufacturing were among the biggest contributors to non-oil GDP. The financial and insurance sector contributed 7.9 per cent to the UAE’s GDP growth, while trade activities made the largest contribution to the non-oil GDP at 16.1 per cent.
The transportation and storage sector experienced robust growth in Q1 2024, closely following the financial and insurance sectors, driven by a significant increase in air travel.
The country’s airports welcomed an impressive 36.5 million passengers in the January-March period, up 14.7 per cent from the corresponding period a year ago. Similarly, its maritime sector registered robust growth, with Dubai’s ports handling 3.7 per cent more containers and Abu Dhabi reporting a 36 per cent increase in cargo volumes.
Meanwhile, the International Monetary Fund said in that the UAE was experiencing robust economic growth, with overall real GDP projected to grow by about 4 per cent in 2024.
The fund said the strong foreign demand for real estate, increased bilateral and multilateral ties and the country’s safe haven status continue to drive rapid growth in housing prices and an increase in rents while adding to ample domestic liquidity.