Beyond Oil: How the UAE’s Economy is Thriving Across Multiple Sectors

The United Arab Emirates (UAE) has successfully diversified its economy away from oil and gas strategically for economic growth so that it can rely on a strong economic structure. The country is less vulnerable to global fluctuations and is able to grow sustainably due to this diversification. Let’s see in detail on how many percent each sector is contributing to the UAE’s economy. 

Oil and Gas:

Throughout history, oil and gas formed the backbone of the UAE economy. In 2009, oil exports were the basis for over 85% of the economy. Efforts have been made to reduce this dependence in recent times and oil and gas now contribute approximately 25% to the economy with a value of AED 550 billion.

Non-Oil Sectors:

Trade and Export: 

Trade activities are vital, contributing a highest 16.1% of non-oil GDP to the UAE. Thanks to its strategic location, the UAE is thriving at import and export activities leading to AED 330 billion economic contributions in 2024. 

Manufacturing: 

The manufacturing sector represents the second highest 14.6% of the non-oil GDP. The economy is worth AED 198 billion and GDP diversification into different types of manufacturing has significantly aided the growth.

Financial Services: 

In the first six months of 2024, the financial and insurance sector witnessed a growth of 7.6% making a contribution of 12.5% to the non-oil GDP. The AED 176 billion worth of the sector keeps it strengthened to aid economic activities. 

Tourism: 

The travel and tourism sector had an increase of 26% in 2023 contributing an all-time high AED 220 billion to GDP or 11.7% of the economy. Every year, millions visit the UAE because of its rich culture and new attractions and its world class infrastructure. 

Real Estate: 

In the first quarter of 2024, the real estate sector contributed to 7.1% of non-oil GDP. The fast expansion and large investments in infrastructure have made it a pillar of the economy which is valued at AED 220 billion.

Aviation and Logistics: 

Spanning across the globe, this sector includes various hubs for air travel and logistics. In fact, air transport & logistics contribute 7% to GDP worth AED 154 billion. The UAE’s prime location adds to its international trade and transport position.

Technology and Innovation: 

As more focus is poured into tech startups and innovations, this has contributed 5% of the GDP which is equivalent to AED 110 billion. The UAE’s space program shows a growing commitment to technology as well. 

Free Zones and Business Services: 

Special economic zones that attract foreign investments contribute 4% of the GDP worth AED 88 billion. These zones provide incentives that enhance the business environment.

Economic Growth:

In the first half of 2024, the UAE’s GDP in real terms reached AED 879.6 billion. This indicates 3.6% growth over the same period in 2023. The UAE’s non-oil sectors grew by 4.4%, representing around 75% of the GDP. This is evidence that the diversification of the economy is progressing and demonstrates the resilience of the UAE economy.