Non-oil sector now makes up nearly 75% of UAE’s economy

The UAE’s real GDP grew by 3.8 per cent in the first nine months of 2024 compared to the same period in 2023, reaching Dhs1.3tn, according to the Ministry of Economy’s latest economic data.

This growth was largely driven by the non-oil sector, which expanded by 4.5 per cent to Dhs987bn, underscoring the country’s progress in economic diversification.

As a result, non-oil activities now contribute 74.6 per cent to real GDP, while oil-related sectors account for 25.4 per cent, according to the data. The figures highlight the increasing role of industries such as trade, tourism, financial services, and technology in supporting the UAE’s economy.

Economic diversification in focus

Abdullah bin Touq Al Marri, Minister of Economy, attributed the UAE’s sustained economic expansion to the country’s policies aimed at diversifying revenue streams, attracting investment, and fostering an innovation-led economy.

The UAE has focused on building an innovative economic model that aligns with global best practices and responds effectively to international economic shifts, according to a statement on WAM.

Ambitions for 2031

The UAE’s economic policies are also aligned with the ‘We the UAE 2031’ vision, which aims to increase GDP to Dhs3tn within the next decade. Part of this strategy involves enhancing the flexibility of economic legislation, strengthening international trade ties, and positioning the UAE as a global hub for emerging industries.

While non-oil growth remains robust, the UAE’s economy still faces external challenges such as fluctuations in global oil prices, inflationary pressures, and geopolitical uncertainties. However, government initiatives in technology, green energy, and entrepreneurship are expected to drive continued momentum.

The UAE’s strong economic performance places it among the leading growth markets globally, with analysts projecting further expansion in 2025 as foreign investment, trade, and tourism continue to flourish.