Thursday 13 June 2024

UAE GDP records 3.8% growth in Q1 to $113.9bn

ABU DHABI, August 1, 2023

The UAE's GDP grew to AED418.3 billion ($113.9 billion) in the first quarter (Q1) of 2023, up 3.8 per cent or more than AED15 billion compared to the same period last year.
Minister of Economy Abdullah bin Touq Al Marri revealed the preliminary estimates for Q1, issued by the Federal Center for Competitiveness and Statistics, confirm the strength of the national economy.
Most sectors and economic activities that serve as the key pillars of the national economy made significant contributions to the growth.
Meanwhile, the non-oil GDP totaled AED312 billion, indicating an increase of more than AED13.5 billion or a 4.5 per cent growth. The latest results confirm the success of the UAE's efforts to promote the growth of non-oil economic sectors and transition to an economic model based on knowledge and innovation, he said.
The minister said: “The UAE, under the leadership of President HH Sheikh Mohammed bin Zayed Al Nahyan, and following the directives of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has adopted an innovative economic model that serves its future vision. 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. 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. 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 country and solidifying the UAE’s leadership and competitiveness at the regional and international levels.”
Bin Touq added: “The latest economic results reflect the UAE's progress in diversifying and sustaining its economy, moving closer to achieving the economic objectives of the 'We the UAE 2031' vision. This year, we will launch a new phase of sustainable economic development in line with the continuing national efforts to scale greater heights in terms of economic performance.”
Hanan Mansoor Ahli, Director of the Federal Center for Competitiveness and Statistics, said: “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. Moreover, well-defined strategies that keep pace with the rapid changes also complement the UAE’s economic growth journey.”
Contribution of key sectors
The contribution of the transport and storage sector to the GDP in Q1 2023 amounted to AED21.79 billion, 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 AED36.3 billion. 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 AED102.3 billion.
The non-financial projects sector grew by 3.5 per cent, an increase of more than AED11.7 billion 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 – TradeArabia News Service.


More Finance & Capital Market Stories

calendarCalendar of Events