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UAE’s GDP Expands by 3.4% to Dh430 Billion in Q1 2024
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UAE’s GDP Expands by 3.4% to Dh430 Billion in Q1 2024

The UAE’s real gross domestic product (GDP) reached Dh430 billion in the first quarter of 2024, marking a 3.4% growth compared to the same period in 2023, as announced by Abdulla bin Touq Al Marri, the Minister of Economy. During this quarter, the UAE’s non-oil GDP increased by 4%, with financial and insurance activities seeing a notable growth rate of 7.9%.

The tourism surge in the UAE contributed to a 4.6% rise in restaurant and hotel activities. The Federal Competitiveness and Statistics Centre (FCSC) provided these growth figures on Monday. According to Al Marri, these preliminary GDP estimates for Q1 2024 underscore the UAE’s dedication to economic diversification, emphasizing knowledge economy sectors and innovative economic models that align with the ‘We the UAE 2031’ vision.

Trade activities led the growth in non-oil GDP, contributing 16.1%, followed by manufacturing at 14.6%, and financial and insurance activities at 13.4%. Construction and building activities accounted for 11.8%, while real estate activities contributed 7.1%. The increase in local credit granted to the private sector resulted in a 6% economic boost and a 7.9% growth in financial and insurance sectors.

Transportation and storage activities showed a 7.3% growth, driven by a 14.7% increase in travellers through UAE airports, bringing the total to 36.5 million in the first quarter. Dubai’s international ports saw a 3.7% increase in container handling, while Abu Dhabi’s ports reported a 36% rise in cargo handling volume.

Construction and building activities grew by 6.2%, driven by several new development projects initiated by the UAE government. Public capital expenditure also saw a significant increase, reaching Dh4.8 billion compared to Q1 2023.

Lastly, the UAE saw substantial tourism growth, with Dubai alone attracting 5.18 million international tourists, an 11% increase compared to the previous year. Abu Dhabi also maintained strong performance in key tourism indicators, including occupancy rates and revenue per available room.