UAE’s GDP grows 3.8% in first quarter to $114bn

Image courtesy: WAM

The UAE’s economy grew by 3.8 per cent in the first quarter of 2023 to $114bn (Dhs418.3bn) compared to the prior-year period, according to the latest data from the Federal Center for Competitiveness and Statistics, as non-oil activities boosted overall growth.

Non-oil GDP totalled Dhs312bn, a 4.5 per cent increase or Dhs13.5bn growth. The latest data confirm the UAE’s unwavering efforts to promote the growth of non-oil economic sectors and transition to an economic model based on knowledge and innovation.

H.E. Bin Touq : UAE’s GDP records 3.8 per cent growth in Q1 2023@Economyae pic.twitter.com/K0J96ZJLGX

— UAEGOV (@UAEmediaoffice) August 1, 2023

“The flexible economic policies that we adopted to support this goal rely on speed and accuracy in responding to global changes, the formulation of forward-looking strategies and plans to drive economic diversification, and the constant upgradation of economic procedures and legislation,” said Abdullah bin Touq Al Marri, the Minister of Economy.

“These efforts have helped to maintain the UAE’s position as an attractive environment for investments on an ongoing basis, thus underlining foreign trade and openness to the world as the key aspects of its global partnerships.”

Al Marri said the success and integration of these policies meet the requirements of sustainable development, ensuring economic prosperity and a decent life for all citizens and residents of the UAE.

Sectors contributing to UAE GDP growth

The contribution of the transport and storage sector to the GDP in Q1 2023 amounted to Dhs21.8bn up 10.9 per cent compared to the same period in 2022. This is followed by the construction sector with a 9.2 per cent growth compared to the same period in 2022, to total Dhs36.3bn.

“The national economy continues to grow, supporting the UAE’s vision to transition into a new economic model based on knowledge and innovation. It confirms the country’s reliance on innovative business models based on proactivity, and flexibility in plans, procedures and legislation,” said Hanan Mansoor Ahli, director of the Federal Center for Competitiveness and Statistics.

The accommodation and food services activities grew by 7.8 per cent, while the finance and insurance sector achieved a 7.7 per cent growth. Wholesale and retail trade achieved 5.4 per cent growth in the first quarter of the year to exceed Dhs102.3bn.

Similarly, the non-financial projects sector grew by 3.5 per cent, an increase of more than Dhs11.7bn compared to Q1 2022. The ICT sector also achieved a growth of 3.3 per cent, while the real estate sector recorded a 3.1 per cent growth compared to the same period in 2022.

Read: UAE government revenue at $31bn in Q1 2023