UAE Economy Growth in Q1 2024

DUBAI (Reuters) – The United Arab Emirates’ economy grew 3.4% in the first quarter of 2024 compared to the same period the previous year, according to preliminary government estimates reported by the state news agency WAM on Monday.

The UAE’s gross domestic product reached 430 billion dirhams (approximately $117 billion) in Q1, with non-oil GDP growing 4% year-on-year during the period, WAM reported, citing figures from the Federal Competitiveness and Statistics Centre.

Trade activities, manufacturing, and financial and insurance services were among the largest contributors to non-oil GDP, according to the report.

The UAE, one of the world’s biggest oil exporters, has increasingly focused on enhancing economic sectors and revenue sources beyond hydrocarbons, establishing itself as the Gulf region’s tourism and commercial hub.

The International Monetary Fund noted earlier this year that economic growth in the Gulf state was broad-based, driven by robust domestic activity in sectors such as tourism, construction, and financial services.

The Fund forecasts GDP growth in 2024 at 4%, up from the 3.5% predicted in its last Regional Economic Outlook report published in April.

A Reuters poll of economists in July projected GDP growth in the UAE at 3.7% for 2024, followed by 4.2% in 2025, bolstered by non-oil sectors like tourism alongside an anticipated gradual increase in oil production.

($1 = 3.6728 UAE dirham)