2023 marks record year for UAE economy, non-oil foreign trade hit staggering $953 billion

The second-largest economy in the Arab world marked great growth in 2023. The UAE’s non-oil foreign trade hit a record Dh 3.5 trillion ($953 billion) last year, boosted by its economic diversification plans despite a decline in international movement of goods and services.

Taking to X on Sunday, Prime Minister and Vice President of the UAE and Ruler of Dubai, HH Sheikh Mohammed bin Rashid, said: “The UAE today is at the heart of the international trade movement … and its economic obligations with everyone continue.”

The Emirates’ trade with its top ten most important foreign partners grew 26% last year, His Highness noted in his tweet, further mentioning: “We indicated at the beginning of 2023 that it will be a record year for the economy.”

Economic diversification plans moving in right direction

The Gulf state has signed a string of comprehensive economic partnership agreements (Cepas) with numerous countries, including India, Indonesia and Turkey. It is working towards inking 26 Cepas as it seeks to attract more investment and diversify its economy.

The UAE’s non-oil foreign trade of record Dh3.5 trillion in 2023 follows the Dh2.23 trillion recorded the year before. The country is “on course” to achieve its target of Dh4 trillion by 2031, Dr Thani Al Zeyoudi, Minister of State for Foreign Affairs, said in August.

The non-oil trade figures recorded last year included Dh2.6 trillion in goods and Dh900 billion in services, reflecting the “resilience and dynamism” of its economy, the Emirati minister noted in a post on X, previously called Twitter, on Sunday.

The numbers confirm that “economic diversification plans are moving in the right direction towards a future economy based on knowledge and innovation, and reflects the increasing international trust in the UAE’s economy,” he said.

Top trading partners and contribution from tourism

China successfully maintained its position as the Emirates’ leading trading partner, followed by India, the US, Saudi Arabia and Turkey. Rounding off the top ten were Iraq, Switzerland, Hong Kong, Japan and Oman, as per official figures.

The tourism sector helped lift trade in services. Dubai, the Middle East’s travel hub, recorded its best annual tourism performance, with international tourist arrivals to the city increasing by 19.4% annually to 17.15 million in 2023, compared to 16.73 million in 2019.

Moreover, other significant sectors contributing to the UAE’s trade services growth comprised ICT, professional and financial services, Islamic financial services, education, medical tourism, logistics and creatives, according to The National.