Page 306 - MOE ENGLISH PR REPORT - SEPTEMBER 2024 (Part 2)

The non-oil sector growth was driven by financial and insurance activities, which registered the
fastest growth rate of 7.9 per cent due to the increase in the local credit to the private sector,
according to the preliminary estimates for the quarter issued by the Federal Competitiveness and
Statistics Centre (FCSC).

Abdulla bin Touq Al Marri, Minister of Ecnonomy, said the impressive performance underlined “the
resilience and vitality of the national economy and exemplified its ability to continue on the path of
sustainable growth. They also reflect the UAE’s commitment to fostering economic diversification
focused on knowledge economy sectors.”

The FCSC data revealed that robust tourism inflows to the UAE led to a 4.6 per cent growth in
restaurant and hotel activities.

The minister said the Arab world’s second-largest economy “adopted an innovative economic
model that supports its future vision, along with effective national economic strategies” that
enhanced openness to the world, promoting partnerships, and transitioning towards an economic
model based on flexibility and innovation.
“The financial and economic data and indicators endorsing the growth of the UAE’s GDP Q1 2024
reflect the resilience of the country’s vital economic sectors. It highlights the effectiveness of the
concerted efforts to implement the directives of the wise leadership to enhance sustainable
economic diversification, reduce dependence on oil, promote investments, and attract capital and
innovative and emerging projects to the country,” Hanan Ahli, managing director of the FCSC, said.
She said the UAE’s advanced rankings in multiple global economic competitiveness indicators can
be attributed to several factors, including the stability of the financial system, the strength of the
national economy, and the effectiveness of economic legislation and policies applied in the
country, besides their ability to adapt to changes and face regional and global challenges.

In a statement, the FCSC said the growth in financial and insurance activities can be attributed to
the significant increase in the local credit granted to the private sector, which led to a six per cent
growth and positively impacting the rebound of non-oil economic activities. Following closely
behind in the second place are transportation and storage activities, which saw a growth of 7.3 per
cent. “This growth was driven by a notable increase in the number of travellers at the country’s
airports during the first three months of this year, reaching 36.5 million travellers, a growth rate of
14.7 per cent compared to the same period last year.”
The UAE’s ports have demonstrated exceptional performance during this time, with Dubai’s
international ports witnessing a 3.7 per cent growth in the number of containers handled, while Abu
Dhabi’s ports experienced a 36 per cent increase in cargo handling volume on an annual basis.

Ranking third, construction and building activities experienced a growth rate of 6.2 per cent in line
with the several development projects initiated by the UAE government in early 2024. They saw a
substantial rise in the government’s public capital expenditures, reaching Dh4.8 billion, compared
to that of Q1 2023.

The data shows that the restaurant and hotel sector secured the fourth spot with a 4.6 per cent
growth during the first quarter of 2024 compared to the corresponding period in 2023. Moreover, the

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resilience