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Non-oil sector propels UAE’s GDP to nearly Dh1.8 trillion in 2024
Upbeat data reinforces confidence in the UAE’s long-term economic trajectory
- PUBLISHED: Sun 15 Jun 2025, 7:07 PM UPDATED: Sun 15 Jun 2025, 8:57 PM
The UAE’s economy registered a growth of 4.0 per cent in real gross domestic product (GDP) in 2024, reaching Dh1.776 trillion, underscoring the resilience and dynamism of the country’s non-oil sectors in the face of a challenging global environment.
According to official data released by the Federal Competitiveness and Statistics Centre (FCSC) on Sunday, non-oil activities contributed an impressive 75.5 per cent to the national economy, amounting to Dh1.342 trillion, while oil-related GDP stood at Dh434 billion.
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The upbeat data has reinforced confidence in the UAE’s long-term economic trajectory, driven by structural reforms, increased investment in non-oil sectors, and strategic initiatives under the “We the UAE 2031” vision. The Ministry of Economy described the growth as a testament to the country’s effective economic diversification strategy and its transformation into a knowledge- and innovation-driven economy.
Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, stated: “The UAE's non-oil foreign trade saw growth of 18.6% year-on-year in the first quarter of this year, reaching Dh835 billion (global average is 2-3%). The nation’s non-oil exports experienced exceptional growth, surging by 41% annually. Our goal to grow non-oil foreign trade to Dh4 trillion by 2031 will be achieved within the next two years; four years ahead of schedule. In 2024, GDP grew by 4%, reaching Dh1.77 trillion, with the non-oil sector contributing 75.5% to the national economy.”
Minister of Economy Abdulla bin Touq Al Marri said the performance reflects the UAE’s determination to build a sustainable, globally competitive economy. “Each milestone brings us closer to our national goal of raising the GDP to Dh3 trillion by the next decade,” said Al Marri. “We are committed to positioning the UAE as a global hub for the new economy by reinforcing sustainable development, leveraging emerging technologies, and enhancing international competitiveness.”
Hanan Mansour Ahli, managing director of the FCSC, noted that the 4.0 per cent GDP growth “mirrors the UAE’s strategic foresight and focus on sustainable, non-oil-driven growth,” with diversified economic activity enhancing social well-being and national resilience.
Among the fastest-growing contributors to GDP in 2024 was the transport and storage sector, which recorded a remarkable 9.6 per cent year-on-year growth, powered by a strong rebound in aviation and logistics. UAE airports handled a total of 147.8 million passengers during the year, a 10 per cent increase from 2023, reflecting the country’s recovery as a global travel and logistics hub.
The construction and real estate sectors also continued their upward momentum. The building and construction sector posted an 8.4 per cent increase, buoyed by robust infrastructure development across urban centres, while real estate activities grew by 4.8 per cent amid rising demand for residential and commercial properties.
Financial and insurance services expanded by 7.0 per cent, reflecting strong capital inflows and healthy banking sector performance. The hospitality and food services sector grew by 5.7 per cent, supported by a surge in tourist arrivals and high hotel occupancy levels throughout 2024.
In terms of sectoral contributions to the non-oil GDP, wholesale and retail trade led the way with a 16.8 per cent share, followed by manufacturing (13.5 per cent), financial and insurance activities (13.2 per cent), construction (11.7 per cent), and real estate (7.8 per cent). These indicators collectively signal a broad-based expansion across key pillars of the non-oil economy.
The International Monetary Fund (IMF) echoed the optimism in its latest regional economic outlook, projecting that the UAE will maintain strong medium-term growth thanks to its effective policy mix and strategic diversification plans. The IMF said the UAE’s fiscal and monetary policies, alongside targeted reforms in labour markets, green energy, and digital transformation, would underpin continued economic stability and competitiveness.
The Central Bank of the UAE, in its most recent economic review, reaffirmed its growth forecast for 2024, noting that the non-oil sector remains the main engine of economic momentum. The apex bank said it expects the non-oil economy to grow by around 5.4 per cent in 2025, supported by steady domestic demand, robust trade activity, and rising levels of foreign direct investment (FDI).
Analysts also highlight that the UAE’s proactive steps toward climate resilience and hosting of global events such as COP28 have elevated its stature as a responsible economic player, further accelerating investment in green technologies, logistics, advanced manufacturing, and tourism infrastructure.
Analysts added that as global headwinds from inflationary pressures and geopolitical uncertainties persist, the UAE’s diversified economic model and prudent policy framework appear well-positioned to deliver sustainable growth and opportunity across sectors. With its ambitious vision to double the size of the economy by 2031, the UAE is increasingly seen as a model of modernisation and economic agility in the Arab Gulf region, they noted.
