UAE Economy Grows 4% in 2024 as Non-Oil Sectors Lead Expansion

The UAE’s gross domestic product (GDP) reached AED 1.77 trillion ($481.4 billion) in 2024, marking a 4% increase from the previous year. The growth, largely driven by non-oil sectors, reflects the country’s continuing shift toward economic diversification, according to the latest data released by the Federal Competitiveness and Statistics Centre (FCSC) and the Central Bank of the UAE.

Non-oil sectors contributed 75.5% of the total GDP, amounting to AED 1.342 trillion. Oil-related activities added AED 434 billion to the economy. The Central Bank has maintained its real GDP growth forecast at 4% for 2024, with projected increases to 4.5% in 2025 and 5.5% in 2026.

In its latest Quarterly Economic Review for December 2024, the Central Bank attributed the steady growth to robust performances across tourism, transportation, financial and insurance services, construction, real estate, and communications.

Minister of Economy Abdulla bin Touq Al Marri hailed the results as evidence of renewed momentum in the national economy. “These indicators reflect the sustained success of the UAE’s economic strategies,” he said. “They demonstrate our transition toward an innovative, knowledge-based, and sustainable economic model aligned with global trends and emerging technologies.”

The minister emphasized that the latest figures move the UAE closer to achieving its long-term economic target of reaching AED 3 trillion in GDP by the next decade. “We are reinforcing our position as a global hub for the new economy, driven by sustainable development, international competitiveness, and forward-looking leadership,” he added.

Hanan Mansour Ahli, Managing Director of the FCSC, described the 4% GDP growth as a sign of the UAE’s strong economic foundations. “It reflects the impact of forward-looking leadership and a focus on non-oil-led, sustainable development,” she said.

Sectoral performance was especially strong in 2024. The transport and storage sector posted the highest growth at 9.6%, fueled by a nearly 10% surge in air travel, with UAE airports handling 147.8 million passengers. The construction sector followed with 8.4% growth, supported by large-scale urban development projects.

Financial and insurance services grew by 7%, while the hospitality sector—including hotels and restaurants—expanded by 5.7%. The real estate market also showed resilience, recording a 4.8% increase.

Trade remained the top contributor to non-oil GDP at 16.8%, followed by manufacturing (13.5%), financial and insurance services (13.2%), construction (11.7%), and real estate (7.8%).

The UAE’s economic performance stands out in the region, with other Gulf nations reporting more modest growth. Saudi Arabia grew by 1.3%, Qatar by 2.4%, Oman by 1.7%, and Kuwait experienced a 2.7% contraction.

As the UAE strengthens its position as a diversified, globally competitive economy, officials remain confident in the nation’s trajectory toward long-term, sustainable prosperity.