UAE economy predicted to expand by 5% this year as economic diversification takes the lead

Speaking to the official Emirates News Agency on Tuesday, UAE’s Minister of Economy Abdullah bin Touq Al Marri said the country’s economy is expecting up to 5% growth in 2024. He called the private sector a “key pillar in the new economic and investment landscape.”

The minister pointed out that more than 73% of the UAE economy is currently non-oil, a historic first for the Gulf state. The development reflects the confidence of the private sector and investors across the globe in the Emirates’ investment environment.

Al Marri made the statements on the occasion of the third annual conference of Investopia, the global investment platform taking place on February 28 and 29 under the theme ‘Emerging Economic Frontiers: Investing in the new Economy Growth Sectors’.

UAE’s Cepa programme driving economic growth

“The UAE has identified the most sustainable and flexible economic sectors … including health technology, agriculture, education, financial services, artificial intelligence and other sectors that contribute to the sustainability of economic sectors,” he further mentioned.

2023 marked a record year for the Emirati economy as its non-oil foreign trade hit a staggering Dh3.5 trillion ($953 billion), boosted by the country’s prominent economic diversification plans despite a drop in international movement of goods and services.

The GCC nation has inked a series of comprehensive economic partnership agreements (Cepas) with several countries, including India, Turkey and Indonesia. It is putting efforts toward signing 26 agreements as it seeks to attract investment and diversify its economy.

2023 marks great year for UAE’s non-oil foreign trade

The non-oil trade of Dh3.5 trillion in 2023 follows the Dh2.23 trillion recorded the year before. The latest numbers confirm that “economic diversification plans are moving in the right direction … and reflects the increasing international trust,” said Dr Thani Al Zeyoudi.

In August, the Minister of State for Foreign Affairs had highlighted the UAE’s objective of reaching Dh4 trillion in terms of non-oil foreign trade by 2031. The 2023 numbers included Dh 2.6 trillion in goods and Dh900 billion in services.

China maintained its position as the leading trading partner of the UAE, followed by India, the US, Saudi Arabia and Turkey. The tourism sector helped lift trade in services, besides ICT, professional and financial services, education and medical tourism.