Page 226 - MOE ENGLISH PR REPORT - DECEMBER 2024

1/2/25, 5:45 PM UAE’s non-oil economy drives 75% of GDP growth in H1 2024 - Finance Middle East
fostering investment. The construction sector followed closely, growing at 7.3%, driven by mega infrastructure
projects such as Etihad Rail and Dubai Urban Master Plan 2040.

Information and communication activities ranked fourth, with a 5.3% growth rate, reflecting the UAE’s focus on
digital transformation and investments in 5G infrastructure and artificial intelligence (AI). The restaurants and
hotels sector also saw significant growth of 5.1%, supported by a booming tourism industry, which welcomed 15.3
million hotel guests—a 10.5% increase compared to the same period last year.

The UAE’s tourism sector recorded exceptional performance, generating Dh24.6 billion in hotel revenues during
the first half of 2024, marking a 7% increase. Dubai and Abu Dhabi, in particular, saw a surge in international
visitors due to global events such as COP28 and expanded air connectivity through carriers like Emirates and
Etihad Airways. According to the World Travel & Tourism Council (WTTC), the UAE’s tourism sector is projected to
grow by 4.2% annually through 2025, further solidifying its status as a global tourism hub.

Non-oil GDP contributors

Trade emerged as the largest contributor to non-oil GDP, accounting for 16.5% of the total, followed by
manufacturing at 15%. The financial and insurance sector contributed 12.5%, while construction added 11.6%.
Real estate rounded out the top five contributors with a 7.6% share. These contributions underscore the UAE’s
economic diversity and its focus on reducing dependence on oil revenues.

The UAE’s manufacturing sector continued to expand, buoyed by initiatives such as Operation 300bn, which aims
to increase the sector’s contribution to GDP from Dh133 billion to Dh300 billion by 2031. Key areas of growth
include aerospace, pharmaceuticals, and advanced technology manufacturing.

“The UAE has successfully laid the foundation
for a sustainable, diversified economy driven by
innovation and knowledge, aligning with global
trends while maintaining its position as a
premier economic hub regionally and
internationally,” said HE Abdulla bin Touq Al
Marri, Minister of Economy.

He added that these achievements pave the way for meeting the economic goals outlined in the “We the UAE
2031” vision, which includes raising GDP to Dh3 trillion within the next decade.

The UAE’s nominal GDP (at current prices) reached Dh981 billion in the first half of 2024, reflecting a growth rate
of 5.6%. Non-oil GDP at current prices rose to Dh749 billion, registering a growth rate of 6.8% compared to the
same period in 2023. This growth reflects not only strong sectoral performances but also the UAE’s strategic
economic policies, including its focus on foreign direct investment (FDI) and entrepreneurship.
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