UAE Economy Grows 3.6% in H1 2024, Driven by Non-Oil Sector Growth

Post by: Raman Preet

The UAE’s economy grew by 3.6% in the first half of 2024. This growth was mainly due to the non-oil sectors of the economy. The country’s total GDP reached Dh879.6 billion ($239.5 billion). The non-oil sector grew by 4.4%, reaching Dh660 billion, which made up 75% of the total GDP, according to Abdulla bin Touq, the UAE’s Minister of Economy.

The non-oil sector grew because the country worked hard to improve business, trade, and investment. Also, there were many new projects started at the beginning of the year. Tourism also played a big part in this growth. The UAE is trying to depend less on oil by focusing on other areas like technology, trade, and manufacturing.

The government has also made changes to bring more people to live and work in the UAE. These changes include longer stay visas and new visa types. The UAE hopes to grow its GDP to Dh3 trillion by 2031.

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In the first quarter of 2024, the economy grew by 3.4%. The Central Bank of the UAE believes the economy will grow by 4% this year. This is a little more than what they expected before. The country also had a record high in non-oil trade, reaching Dh1.4 trillion in the first half of 2024.

The UAE has signed agreements with many countries in Asia, the Middle East, and Africa to boost trade. These agreements will lower tariffs and make it easier to export goods. The UAE expects these agreements to increase exports by 33% and add Dh153 billion to the economy by 2031.

Trade was the biggest part of the UAE’s non-oil GDP, making up 16.5% of the total. Manufacturing came next, making up 15%, then financial and insurance services (12.5%), construction (11.6%), and real estate (7.6%). The transportation and storage sectors grew the fastest, increasing by 8.4%. Financial services grew by 7.6%, and construction grew by 7.3%.

The information and communication industries grew by 5.3%. The hotel and restaurant industry grew by 5.1% because tourism was very busy. Hotel earnings reached Dh24.6 billion in the first half of 2024, which was a 7% increase from the year before. The number of hotel guests increased by 10.5%, reaching 15.3 million people.

The number of people flying in and out of Dubai and Abu Dhabi airports also went up. Passenger numbers at Dubai International Airport rose by 8%, and at Abu Dhabi International Airport, the number increased by 33.8% in the first half of the year.

Looking ahead, the UAE Central Bank expects the economy to grow by 6% in 2025. The International Monetary Fund (IMF) also expects the economy to grow by 5.1% in 2025. This shows that the UAE's economy is growing strong, and its plan to use less oil is working.

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