UAE economy grows by 3.8% in first nine months of 2024

Non-oil sectors contributed Dh987 billion, nearly 75 per cent, to the country's GDP last year

The Abu Dhabi skyline. The UAE economy's growth was supported by a strong expansion in non-oil sectors. Khushnum Bhandari / The National

The UAE’s economy grew by 3.8 per cent during the first nine months of last year, with growth driven by a strong expansion in non-oil sectors as the country continues to diversify its economy.

Real gross domestic product of the Emirates for the nine-month period to the end of September rose to Dh1.32 trillion ($359.4 billion). The non-oil economy grew by 4.5 per cent annually to Dh987 billion, accounting for nearly 75 per cent of the country's economic activity, while the oil sector made up the rest, state news agency Wam reported.

The continuous growth of the national economy, “reaffirms the success of the UAE’s economic policies and strategies aimed at enhancing economic diversification, facilitating business activities, and promoting the expansion of new economy sectors as a key driver for sustainable economic and social development”, Wam quoted Abdullah bin Touq Al Marri, Minister of Economy, as saying.

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“National efforts continue to increase the contribution of non-oil sectors to the national economy, develop more flexible and competitive economic legislations, enhance economic openness to the world, and build productive partnerships with key regional and global markets,” Mr Al Marri said.

These efforts support the objectives of the “We the UAE 2031" vision, which aims to raise the country’s GDP to Dh3 trillion by the next decade and establish the UAE as a global hub for the new economy, he added.

The UAE, the Arab world's second-largest economy, has been focusing heavily on diversifying its economy away from oil by developing sectors such as technology, manufacturing, tourism, trade and innovation. The country has introduced several reforms including longer-stay residence visas as well as new visa categories to attract more talent.

Last September, the UAE Central Bank said it expected the country's economy to grow by 4 per cent last year, an increase from its June estimate of 3.9 per cent, on the back of a boost from its non-oil sector. Growth will also be supported by economic agreements the country has signed with its global trade partners, the regulator said at the time.

The UAE's non-oil foreign trade also hit a record Dh3 trillion last year − up 14.6 per cent year-on-year.

The Comprehensive Economic Partnership Agreements (Cepas) with various nations, from Colombia to Australia, have contributed Dh135 billion to its non-oil trade with partner nations, an increase of 42 per cent compared to the previous year, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said last month.

Cepas aim to reduce tariffs and remove bottlenecks that hamper trade. This programme is projected to increase national exports by 33 per cent and add more than Dh153 billion to the economy by 2031.

Dubai lender Emirates NBD said in a note on Thursday that it estimates the oil sector to have expanded by more than 1 per cent last year.

“On an annual basis, we estimate the economy expanded by 3.9 per cent in the third quarter compared with the same period a year earlier, with the non-oil sector expanding by 4.6 per cent,” the bank said.

“Based on activity data for the fourth quarter, it would appear that there was an acceleration in activity in the final months of the year, supporting our estimate of strong non-oil activity in 2024. The pace of growth announced for the third quarter is in line with our target of 3.7 per cent growth for the year as a whole.”

For 2025, the UAE Central Bank expects the country's economy to grow by 6 per cent, while the International Monetary Fund forecasts expansion of 5.1 per cent.