Prime Highlights:
The UAE’s economy expanded by 3.8% in the first nine months of 2024.
The non-oil sector grew by 4.5%, contributing 74.6% to the total GDP.
Economic growth is expected to accelerate to 4.5% in 2025 and 5.5% in 2026.
Key Background:
The UAE’s economy has expanded by 3.8% in the first nine months of 2024, marking a significant milestone in its economic performance, largely driven by growth in the non-oil sector. According to the state news agency WAM, the non-oil sector’s contribution grew by 4.5% year-on-year, reaching 987 billion dirhams ($268.74 billion).
By the end of September 2024, the non-oil sector accounted for 74.6% of the UAE’s total GDP, while oil-related activities contributed 25.4%. This aligns with broader regional trends, particularly within the Middle East, where countries like Saudi Arabia are focusing on economic diversification.
Abdullah bin Touq Al Marri, UAE Minister of Economy, attributed this growth to the country’s successful economic policies, which promote diversification and foster a favorable business environment. He emphasized that the ongoing expansion of non-oil sectors, such as tourism, transportation, and financial services, plays a crucial role in sustainable development.
The Central Bank of the UAE had forecasted a 4% GDP growth for 2024, with non-oil sectors expected to continue their upward trajectory. In addition, it predicts the economy to grow by 4.5% in 2025 and 5.5% in 2026, with non-oil GDP projected to increase by 4.9% in 2024 and 5% in 2025. This growth is attributed to strategic government initiatives aimed at attracting foreign investment and further diversifying the economy.
The broader regional economic landscape also reflects positive growth, with Bahrain and Qatar both reporting GDP increases in the third quarter of 2024. Additionally, Saudi Arabia’s non-oil exports saw a significant rise of 17.3% in the last quarter of 2024, further emphasizing the region’s commitment to economic diversification. The UAE’s robust economic performance underscores the continued success of its diversification strategies and positions the country for further growth in the coming years.
