UAE economy expands by 3.7% in first half on ‘staggering’ non-oil growth

The UAE economy experienced a 3.7 percent annual expansion in the first half of the year, driven by strong growth in the non-oil sector. This growth aligns with the country’s ongoing efforts to diversify its economy, according to Minister of Economy Abdulla bin Touq. Despite the fact that the first-half growth rate may appear modest in comparison to the previous year, Mr. bin Touq emphasized that it is still considered robust given the global and regional uncertainties. Of particular note is the non-oil sector’s remarkable 5.9 percent growth during the first six months of the year, which accounts for approximately 71 percent of the country’s gross domestic product. This growth serves as a testament to the success of the UAE’s diversification initiatives. Looking ahead, the UAE remains committed to building a sustainable and inclusive economy, with policies and initiatives firmly rooted in a vision of prosperity for its people and a thriving business environment. In the January-March period, non-oil GDP in the UAE, the second-largest economy in the Arab world, increased by 4.5 percent on an annual basis, reaching Dh312 billion ($84.9 billion).The Arab world’s second-largest economy experienced a 4.5 percent increase in its non-oil GDP, reaching Dh312 billion ($84.9 billion) for the January-March period on an annual basis. This growth follows a strong rebound in the country’s economy last year, which grew by 7.9 percent in 2022, the highest in 11 years, amounting to Dh1.62 trillion at constant prices. The resurgence can be attributed to higher oil prices and government measures implemented to mitigate the impact of the Covid-19 pandemic. In the first quarter of this year, the UAE’s economy expanded by 3.8 percent on an annual basis, reaching Dh418.3 billion ($113.9 billion), compared to Dh403.3 billion the previous year. These figures were quoted by Mr. bin Touq in August, based on preliminary estimates from the Federal Centre for Competitiveness and Statistics. It is anticipated that the momentum of economic growth will continue in the second half of the year, with the UAE’s GDP projected to expand by 3.6 percent in 2023. Despite challenges such as inflation, monetary policy uncertainty, and slowing global economic growth, the government’s implementation of various measures has enhanced the resilience of the economy. Mr. bin Touq acknowledged that these external factors have tested the adaptability and resilience of countries and economies worldwide, posing significant challenges. Policymakers globally are currently facing challenging times, as they must address not only the trade-off between growth and inflation but also the need for financial stability. However, the UAE’s growth has demonstrated extraordinary resilience in the face of these challenges.