- August 3, 2023
- Posted by: Waqas Siddiqui
- Category: Business & Economy
UAE GDP Data shows economic growth of 3.8% ($114 bn) in Q1
The first quarter of 2023 showcased growth of UAE GDP by 3.8% in comparison to a similar period last year. The economy grew in value by AED 418.3 billion ($114 billion) according to the Federal Center for Competitiveness and Statistics. Furthermore, the economic growth of UAE is largely attributed to the non-oil sector which surged to AED 312 billion ($85 billion). It showcased a substantial 4.5% rise amounting to AED 13.5 billion ($7 billion).
Enabling Growth Through Agility and Innovation
Abdullah bin Touq Al Marri, the Minister of Economy, noted that the government ensured growth through flexible economic policies by responding to global changes swiftly and with accuracy. In addition, it focused on creating future strategies and planning economic diversification with the motive of continuously upgrading economic procedures and legislation.
He further remarked that the UAE’s status as an appealing investment destination has been effectively upheld by such initiatives, consistently highlighting international trade and global partnerships. He also emphasized that the requisites of sustainable progress are met by the triumph and integration of these measures, guaranteeing economic well-being and a respectable standard of living for all UAE citizens and residents.
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UAE’s Economic Sectors Contributing to the GDP Growth
In the first quarter of 2023, the transport and storage sector made a contribution of AED 21.8 billion ($6 billion) to the GDP, marking a growth of 10.9 percent in comparison to the corresponding period in 2022. Following this, the construction sector experienced a 9.2 percent expansion in contrast to the same period last year, reaching a total of AED 36.3 billion ($9.8 billion).
Accommodation and food services activities displayed a growth of 7.8 percent, while the finance and insurance sector achieved a 7.7 percent increase. Wholesale and retail trade saw a growth of 5.4 percent in the initial quarter, surpassing a value of AED 102.3 billion ($28 billion). Likewise, the non-financial projects sector observed a growth of 3.5 percent, translating to a rise of over AED 11.7 billion ($3.2 billion) compared to Q1 of 2022. The ICT sector also recorded a growth of 3.3 percent, while the real estate sector exhibited a 3.1 percent expansion when contrasted with the same period in 2022.
These recent figures underscore the UAE’s resolute commitment to enable the growth of non-oil sectors and transition towards an economic model promoting knowledge and innovation. Likewise, the non-oil economy of Dubai also surged to 10-month high with sustained growth in overall business activity.