emirates7 - Abdulla bin Touq Al Marri, UAE Minister of Economy, stated that the preliminary GDP growth estimates for Q1 2024, released by the Federal Competitiveness and Statistics Centre (FCSC), demonstrate the strength and adaptability of the UAE’s economy, which continues to pursue sustainable growth.

He noted that the UAE's real GDP reached AED430 billion in the first quarter of 2024, marking a significant 3.4% growth compared to the same period in 2023, while the non-oil GDP increased by 4%.

Al Marri attributed this success to the leadership of President His Highness Sheikh Mohamed bin Zayed Al Nahyan and Prime Minister His Highness Sheikh Mohammed bin Rashid Al Maktoum, who have championed an innovative economic model that aligns with the UAE's future vision. This model promotes openness, partnerships, and a shift toward flexibility and innovation, which has been instrumental in advancing national economic strategies.

He also highlighted that these positive results are key to achieving the economic goals set in the "We the UAE 2031" vision, which aims to raise the nation's GDP to AED3 trillion within the next decade.

Hanan Ahli, Managing Director of FCSC, emphasized that the financial and economic indicators for Q1 2024 reflect the resilience of key sectors, showcasing the effectiveness of efforts to diversify the economy, reduce oil dependence, attract investment, and foster innovation. She also pointed to the UAE's strong performance in global competitiveness rankings, which stems from the stability of its financial system, robust economy, and adaptable economic policies.

According to the FCSC, the financial and insurance sector emerged as the leading non-oil contributor to GDP growth, expanding by 7.9%. This was driven by a 6% rise in private sector credit, which boosted non-oil economic activities.

Transportation and storage ranked second, growing 7.3%, largely due to a 14.7% increase in airport traffic, with 36.5 million passengers passing through the UAE’s airports in Q1 2024. Ports also performed well, with Dubai's ports experiencing a 3.7% rise in container handling and Abu Dhabi's ports seeing a 36% surge in cargo volumes.

The construction sector grew by 6.2%, spurred by government development projects and a rise in public capital expenditures to AED4.8 billion in Q1 2024.

The restaurant and hotel sector grew by 4.6%, supported by a strong tourism industry. Dubai welcomed 5.18 million international tourists, an 11% increase from the previous year, while Abu Dhabi maintained high hotel occupancy and revenue rates.

Trade activities contributed the most to non-oil GDP, accounting for 16.1%, followed by manufacturing at 14.6% and financial and insurance activities at 13.4%. Construction contributed 11.8%, and real estate added 7.1%.