UAE's Economy Grows 3.4% in Q1 2024

The economy of the UAE achieved a growth of 3.4% in the first quarter of 2024, reaching 430 billion dirhams, proving the country's economic stability and vitality. Growth in the non-oil sector was even more remarkable, rising by 4.0% compared to the same period last year, in line with the 'We are the UAE 2031' vision, which aims to increase the country's GDP to 3 trillion dirhams in the next decade.

The financial and insurance sector was the main driver of growth, achieving a 7.9% increase, primarily due to the rise in private sector lending. Abdullah bin Touq Al Marri, the UAE's Minister of Economy, stated that this result 'reflects the resilience and dynamism of the national economy' and demonstrates the UAE's commitment to sustainable growth and economic diversification, particularly in knowledge-based economic sectors.

The hotel and hospitality sector achieved 4.6% growth, fueled by increased tourism. In addition to the sector's contribution, the transportation and logistics sector also strengthened, showing a 7.3% increase, supported by a 14.7% rise in passenger traffic through UAE's airports. The ports also achieved significant performance, especially Abu Dhabi, where freight volume increased by 36% annually.

Trade contributed 16.1% to the non-oil GDP, while manufacturing accounted for 14.6%, and financial and insurance activities reached 13.4%. The construction and real estate sectors also played a significant role, reflecting the UAE's economic model's resilience and innovation.