According to preliminary government figures, the economy of the United Arab Emirates (UAE) increased 4.3% year over year in the fourth quarter of 2023, with non-oil economic development notably surpassing overall GDP.
The banking and insurance sectors, as well as the transportation, storage, real estate, and construction industries, all saw increases in their non-oil GDP of 6.7% during this time. The UAE has been stepping up its investments in cutting-edge technology and renewable energy as part of its efforts to diversify its economy away from petroleum.
Currently, the GDP that is not derived from oil contributes more than 70% to overall growth. Despite a fall in oil activity as a result of reduced output and prices, real GDP growth for 2023 is projected to be 3.6%, with non-oil GDP growth coming in at 6.2%.
The International Monetary Fund (IMF) claims that strong domestic demand for financial services, construction, and tourism has contributed to the UAE’s broad-based economic growth. The IMF increased its prediction for the GDP growth of the UAE in 2024 from 3.5% to 4%.
The UAE is expected to have the strongest GDP growth among the Gulf countries in 2024, with a forecast of 4% based on an April survey.
