UAE GDP has witnessed a 3.8 percent growth in the first quarter of 2023, confirming the strength of the national economy, explained Abdullah bin Touq Al Marri, Minister of Economy.
The country’s GDP now stands at AED418.3 billion compared to the same period last year, most sectors and activities were recognised to have served as the key pillars, making significant contributions.
The latest figures revealed that the non-oil GDP reached AED312 billion in the first quarter of 2023, marking a remarkable increase of more than AED13.5 billion, representing a 4.5 percent growth compared to the same period last year.
These positive economic indicators underscore the UAE’s strategic efforts to reduce reliance on oil revenues and instead focus on fostering knowledge-based and innovative sectors.
The Ministry of Economy, in a statement, emphasized the success of the UAE’s economic model and the importance of adapting to global changes swiftly and accurately. He highlighted the government’s commitment to formulating future-oriented strategies that drive economic diversification and enhance economic procedures and legislation.
Bin Touq, the Minister of Economy said, “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.”
Impressive growth in UAE’s key sectors
The transport and storage sector emerged as the highest contributor, adding AED21.79 billion to the GDP, experiencing a remarkable 10.9 percent growth compared to the same period in 2022.
Following closely, the construction sector showcased a 9.2 percent growth, reaching a total of AED36.3 billion. The accommodation and food services activities witnessed a 7.8 percent growth, while the finance and insurance sector achieved a 7.7 percent growth. The wholesale and retail trade sector recorded a 5.4 percent growth, exceeding AED102.3 billion.
The non-financial projects sector experienced a 3.5 percent growth, contributing more than AED11.7 billion compared to Q1 2022.
Additionally, the information and communications technology (ICT) sector witnessed a 3.3 percent growth, while the real estate sector recorded a 3.1 percent growth compared to the same period in 2022.
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.”
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