The oil and gas sector contributed 106.3 billion dirhams to quarterly UAE’s GDP.

During the first quarter of 2023, the extractive industries, which include crude oil and natural gas, accounted for approximately 25% of the United Arab Emirates’ gross domestic product. This success indicates that the country has effectively enhanced its strategy of reducing its economic reliance on oil.

According to data from the “Federal Center for Competitiveness and Statistics”, the value of extractive activities in the first quarter of the previous year reached 106.3 billion dirhams, an increase from 104.7 billion dirhams in the first quarter of 2022, when its contribution rate was approximately 26%.

The contribution of extractive activities to the economy of the country falls within the non-financial projects sector, which amounted to a contribution of 351.5 billion dirhams in the 2023 quarter, representing 84% of the UAE’s total GDP, compared to approximately 340 billion in the first quarter of 2022.

Meanwhile, financial and insurance activities accounted for 10% of the country’s economy, with a value of 41.5 billion dirhams, compared to 38.7 billion dirhams in the corresponding period of 2022, representing a growth of 7.2%.

As for the activities of general administration, defense, and mandatory social security, their contribution was 5.4% amounting to 22.4 billion dirhams, compared to 22.1 billion dirhams, which represents a growth of 1.3%.

Regarding the activities of households as employers, their contribution amounted to 0.6% of the total national income, totaling 2.6 billion dirhams, compared to 2.56 billion dirhams with a growth rate of 2.1%.

The United Arab Emirates’ Gross Domestic Product (GDP) at constant prices reached over 418 billion, growing by 3.7% in the first quarter of 2023 compared to the first quarter of 2022, which recorded 403 billion dirhams.

As the non-oil state revenue increased by 4.5%, reaching 312 billion, compared to 298.5 billion dirhams in the first quarter of 2022.

Growth higher!

Five sectors recorded the highest growth in the first quarter of 2023:

• Firstly, the transportation and storage sector grew by 11% with a value of 22 billion dirhams, compared to 19.6 billion dirhams.

• Secondly, the construction sector experienced a growth of 9.2% with a value of 36.3 billion dirhams, compared to 33.2 billion dirhams.

• Thirdly, accommodation and food services activities grew by 7.8% with a value of 9 billion dirhams, compared to 8.4 billion dirhams.

• Fourthly, wholesale and retail trade, as well as motor vehicle and motorcycle repairs, increased by 5.4% with a value of 51.6 billion dirhams, compared to 49 billion dirhams.

• Lastly, the information and communication sector grew by 3.3% with a value of 13 billion dirhams, compared to 12.4 billion dirhams.

The most regressed!

In terms of sectors, both manufacturing and arts, entertainment, and recreation sectors experienced a decrease of 0.2%.

The value of manufacturing activities was around 44.5 billion UAE dirhams, compared to 44.7 billion UAE dirhams. Similarly, the value of arts and entertainment activities amounted to 1.89 billion UAE dirhams, compared to 2 billion dirhams in the first quarter of 2022.