Non-oil sector leads UAE economic growth

The UAE economy grew by 3.7% year on year in the first half of this year, fueled by robust non-oil sector development as the country pursues its diversification plans, according to Minister of Economy Abdulla bin Touq Al Marri.

“While the first-half rate of economic growth “may appear small” in comparison to last year, it is strong growth against the background of global and regional uncertainties,” bin Touq Al Marri said at the AIM conference in Dubai on Monday.

“The non-oil sector’s staggering 5.9% increase in the first half of the year is even better news because it accounted for almost 71% of GDP, demonstrating the effectiveness of the UAE’s diversification ambitions,” he added.

“The UAE non-oil economy expanded in September as a result of new orders. The economic success reflects our resilience, diversity, and dedication to openness and international cooperation,” bin Touq Al Marri said.

Non-oil GDP in the Arab World’s second-largest economy increased by 4.5% year on year to AED 312 billion ($84.9 billion) in January–March.

The UAE’s economy recovered impressively from the COVID-19-induced downturn last year, expanding by 7.9% in 2022, the highest in 11 years, reaching AED 1.62 trillion at constant prices.

Higher oil costs and government initiatives to alleviate the impact of the epidemic fueled the rebound.