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H.E. Bin Touq: UAE’s GDP records 3.8 per cent growth in Q1 2023 moving closer to the achievement of ‘We the UAE 2031’ vision

September 23, 2023
in News
H.E. Bin Touq: UAE’s GDP records 3.8 per cent growth in Q1 2023 moving closer to the achievement of ‘We the UAE 2031’ vision
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    DUBAI, UAE, September 22, 2023 /24-7PressRelease/ — H.E. Abdullah bin Touq Al Marri, Minister of Economy, explained that the preliminary estimates of the UAE’s GDP growth at constant prices in the first quarter (Q1) of the year 2023, issued by the Federal Center for Competitiveness and Statistics, confirm the strength of the national economy. Most sectors and economic activities that serve as the key pillars of the national economy made significant contributions, taking the UAE’s GDP to AED 418.3 billion in Q1 2023, up 3.8 per cent or more than AED 15 billion compared to the same period last year.

Meanwhile, the non-oil GDP totaled AED 312 billion, indicating an increase of more than AED 13.5 billion or a 4.5 per cent growth. The latest results confirm the success of the UAE’s efforts to promote the growth of non-oil economic sectors and transition to an economic model based on knowledge and innovation.

The Minister of Economy said: “The UAE, under the leadership of President H.H. Sheikh Mohammed bin Zayed Al Nahyan, and following the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has adopted an innovative economic model that serves its future vision. The flexible economic policies that we adopted to support this goal rely on speed and accuracy in responding to global changes, the formulation of forward-looking strategies and plans to drive economic diversification, and the constant upgradation of economic procedures and legislation. These efforts have helped to maintain the UAE’s position as an attractive environment for investments on an ongoing basis, thus underlining foreign trade and openness to the world as the key aspects of its global partnerships. The success and integration of these policies meet the requirements of sustainable development, ensuring economic prosperity and a decent life for all citizens and residents of the country and solidifying the UAE’s leadership and competitiveness at the regional and international levels.”

H.E. Bin Touq added: “The latest economic results reflect the UAE’s progress in diversifying and sustaining its economy, moving closer to achieving the economic objectives of the ‘We the UAE 2031’ vision. This year, we will launch a new phase of sustainable economic development in line with the continuing national efforts to scale greater heights in terms of economic performance.”

Contribution of key sectors

The contribution of the transport and storage sector to the GDP in Q1 2023 amounted to AED 21.79 billion, up 10.9 per cent compared to the same period in 2022, to become the highest.

This is followed by the construction sector with a 9.2 per cent growth compared to the same period in 2022, to total AED 36.3 billion. The accommodation and food services activities grew by 7.8 per cent, while the finance and insurance sector achieved a 7.7 per cent growth. Wholesale and retail trade achieved 5.4 per cent growth in the first quarter of the year to exceed AED 102.3 billion.

The non-financial projects sector grew by 3.5 per cent, an increase of more than AED 11.7 billion compared to Q1 2022. The ICT sector also achieved a growth of 3.3 per cent, while the real estate sector recorded a 3.1 per cent growth compared to the same period in 2022.

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