T + T – Normal size
Emirates NBD revealed that the non-oil sector in the UAE exceeded 75% of the country’s real GDP during the first quarter of 2024, recording its highest level ever.
The Ministry of Economy announced last May that “the non-oil sector accounted for nearly 74% of the gross domestic product, for the first time in the history of the UAE.” However, Emirates NBD’s estimates were one point higher than the ministry’s after the official results of the UAE’s economic performance in the first quarter of this year were announced in early September.
The bank noted in its analysis that the UAE’s non-oil GDP grew by 4.0% year-on-year in the first quarter, compared to a 1.6% expansion in the oil and gas sector during the same period, adding that “controlling hydrocarbon production (oil and gas sector) means that non-oil sectors accounted for more than
75% of real GDP in the first quarter of 2024, the highest level ever.”
The country’s real GDP reached AED 430 billion during the first quarter of this year, recording a remarkable growth of 3.4% compared to the same period in 2023, while the non-oil GDP achieved a growth of 4% during the first quarter of 2024 compared to the same period last year.
According to estimates issued by the Federal Competitiveness and Statistics Centre, finance and insurance activities topped the list of non-oil economic activities with the fastest growth in the country’s GDP, with a growth rate of 7.9%, followed in second place by transportation and storage activities, which recorded a growth rate of 7.3%.
Construction activities ranked third, recording a growth of 6.2%, while restaurants and hotels activities ranked fourth, recording a growth of 4.6% during the first three months of 2024.
On the other hand, trade activity topped the rest of the activities with the highest contribution to the non-oil GDP by
16.1%, followed by manufacturing activities at 14.6%, financial and insurance activities ranked third at 13.4%, while construction and building activities contributed 11.8%, followed by real estate activities at 7.1%.
Economic growth
Emirates NBD forecasts show that the UAE will be the fastest growing Gulf country in terms of real GDP during 2024 and 2025, with the UAE economy expected to grow by 3.7% this year, compared to 1% for the Saudi economy, 1.7% for the Qatari economy, 0.7% for the Kuwaiti economy, 1.6% for the Omani economy, and 1.8% for the Bahraini economy.
For the coming year, the UAE economy is expected to grow at
5%, the Saudi economy at 3.7%, the Qatari economy at 2.2%, the Kuwaiti economy at 2.2%, the Omani economy at 2.8%, and the Bahraini economy at 3.1%.
