UAE’s GDP Increased by 3.6%, Boosted by Strong Non-Oil Sector Growth and Economic Diversification

In 2023, the United Arab Emirates (UAE) showed strong economic growth. The country’s Gross Domestic Product (GDP) reached AED 1.68 trillion, which is a 3.6% increase from the previous year. The non-oil GDP, which represents the part of the economy not related to oil, grew even more, reaching AED 1.25 trillion with a growth rate of 6.2%. This data comes from the Federal Competitiveness and Statistics Centre.

Abdullah bin Touq Al Marri, the UAE’s Minister of Economy, highlighted that the country saw significant growth in many key sectors. This growth places the UAE fifth in the world for real GDP growth. Non-oil sectors were particularly strong, contributing 74.3% to the total GDP by 2023. This is a part of the UAE’s strategy to diversify its economy and rely less on oil. The country has resilient policies and strategic plans aimed at boosting the GDP to AED 3 trillion by 2031. These plans emphasize innovation and diversity in the economy.

Hanan Mansoor Ahli, Executive Director of the Competitiveness Sector at the Federal Competitiveness and Statistics Authority, noted that the UAE’s GDP growth is due to the variety of economic sectors that align with the leadership’s vision. The focus is on economic diversification, attracting investments, and fostering innovation. These efforts are crucial for continued growth and a promising future.

In 2023, different sectors in the UAE saw remarkable growth. Financial activities led the way with a 14.3% increase. The transport sector also performed well, growing by 11.5%. These sectors are essential for the UAE’s economy and show the country’s ability to grow in diverse areas.

The UAE saw a 25% increase in foreign visitors, totaling 31.5 million. This is a noteworthy rise that emphasizes the UAE’s attraction as a travel destination for people all over the world. The construction sector also grew by 8.9%, showing continued development and infrastructure projects. Real estate saw a 5.9% increase, and the hospitality sector, including residency and food services, grew by 5.5%.

The total GDP for the UAE reached AED 1.88 trillion in 2023. The non-oil GDP, a key indicator of economic diversification, was AED 1.43 trillion, marking a 9.9% increase from 2022. These figures demonstrate the UAE’s successful efforts to grow its economy beyond oil.

The United Arab Emirates (UAE) has solidified its ranking inside the top ten nations across multiple global GDP-related competitiveness metrics. According to the Real Economic Growth Rate Index, the nation came in fifth place worldwide in 2023. It also placed sixth in GDP (PPP) per capita, according to the IMD World Competitiveness Yearbook 2023. Additionally, the UAE was sixth in the GNI Index, as reported in the UNDP Human Development Index Report 2024. The UAE’s robust economic growth and global competitiveness is highlighted by these rankings.

The UAE has formed enterprising objectives for the future. The country’s leaders aim to elevate the GDP to AED 3 trillion by 2031. This will be achieved through resilient policies, strategic plans, and a focus on innovation and diversity. By continuing to attract investments and foster various economic sectors, the UAE aims to maintain its strong growth trajectory.

The UAE’s sustained growth is a result of strategic planning and a devotion to diversification. By reducing dependence on oil and focusing on sectors like finance, transport, tourism, construction, and real estate, the country has built a robust and diverse economy. This system not only supports current growth but also ensures a stable and profitable future.

In 2023, the UAE demonstrated impressive economic growth, pushed by a various spectrum of sectors. With a GDP of AED 1.68 trillion and significant contributions from non-oil sectors, the country has shown the effectiveness of its diversification strategy. The leadership’s focus on innovation, investment attraction, and strategic planning has positioned the UAE as a global economic leader. As the country aims to reach a GDP of AED 3 trillion by 2031, the future looks bright for the UAE’s economy.

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