The economy grew 3.6% in 2023, with the non-oil economy growing 6.2%, according to figures (pdf) published by the Federal Competitiveness and Statistics Center. Oil GDP was down 3.1% amid oil cartel Opec’s supply cuts, which drove down output.

The biggest driver of growth in the non-oil sector was financial services, which grew nearly 15%, according to the figures. This reflects “outstanding earnings by banks, but also the outstanding growth of the financial services sector,” Emirates NBD Chief Economist and Head of Research Khatija Haque told Bloomberg (watch, runtime: 06:22).

The growth of the sector comes on the back of the relocation of asset managers, family offices, and hedge funds to Dubai and Abu Dhabi, Haque said.

Other sectors driving growth: The country also saw a strong rebound in transport and logistics, which grew 11.5%, according to the figures. Construction followed closely with almost 9% growth, while real estate saw 6% growth.

REMEMBER- Abu Dhabi’s non-oil economy grew 9.1% y-o-y last year, with real GDP growing 3.1%. Data out earlier this week also showed Sharjah’s non-oil economy growing 7.1% y-o-y, with GDP growing 6.5% y-o-y.

Public sector investment in infrastructure and construction will continue to drive growth, in light of big projects like Etihad Rail and Al Maktoum Airport, Haque added.

What to expect in 2024: The International Monetary Fund (IMF) recently revised upward its 2024 growth forecast for the UAE to 4%.The Economy Ministry and the World Bank also expect growth to come in at 3.9% clip in 2024, while Oxford Economics is more bullish, expecting 4.4% growth, and the Central Bank of the UAE forecasts 4.2% growth.

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