The United Arab Emirates (UAE) reported robust economic growth in 2024, with non-oil sectors accounting for approximately 75.5 percent of the country’s total GDP, underscoring its drive to diversify away from fossil fuels.
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According to the Federal Competitiveness and Statistics Centre, the UAE’s real gross domestic product (GDP) rose by 4 percent last year, reaching AED 1.776 trillion (USD ≈ 484.7 billion). Of that, the non-oil economy grew 5 percent to AED 1.342 trillion, while oil-related activities contributed AED 434 billion — translating to a 75.5 percent share of GDP (thenationalnews.com).
Economic leaders highlighted the milestone as a clear indicator of the nation’s successful diversification strategy:
- Economy Minister Abdulla bin Touq Al Marri said the figures reflect “the sustained success of the UAE’s economic strategies” aligned with the “We the UAE 2031” vision, which aims for a GDP of AED 3 trillion within the next decade (arabnews.com, gulfbusiness.com).
- Hanan Mansour Ahli, Managing Director of the FCSC, echoed the sentiment, describing the 4 percent growth as “a reflection of exceptional economic performance” rooted in non-oil–driven development.
Key Drivers: Transport, Construction, Finance & Tourism
Several non-oil sectors registered notable expansion in 2024:
- Transport & storage: +9.6 percent — fueled by a 10 percent rise in airport passenger traffic to nearly 148 million.
- Construction & building: +8.4 percent, supported by massive urban infrastructure investments.
- Finance & insurance: +7 percent .
- Hospitality (hotels & restaurants): +5.7 percent.
- Real estate: +4.8 percent (gulfnews.com).
In terms of non-oil GDP contribution: trade (16.8 %), manufacturing (13.5 %), finance & insurance (13.2 %), construction (11.7 %), and real estate (7.8 %) led the charge.
Diversification Strategy Pays Off
The impressive non-oil growth aligns with the UAE’s efforts under the “We the UAE 2031” strategy, which emphasizes a shift toward a knowledge-based, technology-driven, and sustainable economic model (wam.ae).
Furthermore, diversification success is complemented by expanding non-oil foreign trade, which surged 18.6 percent year-on-year in Q1 2025 to AED 835 billion, with non-oil exports leaping 41 percent. This places the UAE on track to achieve an AED 4 trillion non-oil trade target well ahead of its 2031 deadline.
Outlook
The Central Bank of the UAE forecasts real GDP growth of 4 percent in 2025 and 5.5 percent in 2026, buoyed by continued performance in tourism, transportation, financial services, construction, and communications (arabnews.pk).
Echoing the figures, Arab News and Xinhua confirm the non-oil share at 75.5 percent, reiterating confidence in the UAE’s post‑hydrocarbon economic resilience (english.news.cn).
What It Means
- The data cements the UAE’s transformation into a regional economic powerhouse driven by diversified sectors like finance, logistics, tourism, and manufacturing.
- With a robust non-oil base, the UAE is better insulated against oil price volatility and poised for sustainable long-term growth.
- The government’s strategic investments and policy reforms appear to be generating tangible dividends.
- In 2024, over 75 percent of the UAE’s GDP growth originated from non-oil sectors, highlighting a deliberate and successful pivot toward a more varied and resilient economic foundation.
For further reading: EU-UAE Free Trade Talks, UAE Non-Oil Trade Touches 3 Trillion
Benoy Jacob is a journalist-turned-business consultant, currently serving as the Director of Client Relations at ATB Corporate in Abu Dhabi. With a keen eye for market trends and business strategy, he helps companies expand, build strategic partnerships, and optimize their operations in the UAE. Benoy brings a unique perspective on economic policies, trade ecosystems, and investment opportunities in Abu Dhabi and the wider MENA region.
George Mathew is a Corporate Lawyer at ATB Corporate in Abu Dhabi, specializing in corporate structuring, foreign investments, and regulatory compliance. With extensive experience across the UK, Oman, India, and the UAE, he brings a deep understanding of cross-border business regulations and international investment frameworks. George works closely with businesses, investors, and multinational corporations, helping them navigate the legal landscape in Abu Dhabi’s thriving business ecosystem.