Other BriefingsUAE Q4 2023 Prelim Data: Non-Oil Sectors Propelling 4.3% GDP Growth
Preliminary government data for the fourth quarter of 2023 revealed a robust 4.3 percent year-on-year growth in the UAE’s economy, with non-oil sectors notably outpeforming in their contribution to the overall GDP.
During the same period, non-oil GDP surged by 6.7 percent, as reported by the Federal Competitiveness and Statistics Centre.
Leading the growth trajectory were financial and insurance activities, transportation and storage, as well as real estate and construction sectors. The UAE has strategically bolstered investments in emerging fields such as renewable energy and advanced technology.
As one of the globe’s major oil exporters, the UAE has redoubled efforts to diversify its economic landscape away from hydrocarbons, attracting foreign investment. Non-oil GDP now spearheads over 70 percent of the overall growth contribution.
Reuters calculations suggest a 3.6 percent expansion in real GDP for 2023, with non-oil GDP marking a substantial 6.2 percent growth amidst a downturn in oil activities due to reduced production and prices, impacting regional oil and gas producers.
The International Monetary Fund (IMF) recently stated that the UAE’s economic expansion was well-rounded, propelled by robust domestic activity in tourism, construction, and financial services.
In an upward revision, the IMF now anticipates GDP growth of 4 percent for 2024, up from the previous projection of 3.5 percent in its Regional Economic Outlook report issued in April. Similarly, a Reuters poll of economists in April forecast a 4 percent GDP growth for the UAE in 2024, the swiftest among Gulf counterparts.
Analysts at Emirates NBD noted the UAE’s economy’s remarkable resilience in 2023 despite subdued external conditions and notably higher interest rates.
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