The economy grew 3.4% y-o-y to AED 430 bn in 1Q 2024, state news agency Wam reports, citing preliminary figures published by the Federal Competitiveness and Statistics Center. Non-oil GDP rose 4% y-o-y during the quarter amid efforts to reduce dependence on oil, promote investments, and attract fresh capital.

The biggest driver of growth in the non-oil sector was financial and ins. activities, which grew 7.9% on the back of a 6% increase in local credit to the private sector, according to the figures.

Other sectors driving growth: The country also saw a strong rebound in transport and storage activities, which grew 7.3%, driven by a 14.7% increase in airport travelers to 36.5 mn during the period, according to the figures. Construction and building followed closely with 6.2% growth — boosted by ramped-up capital expenditure to AED 4.8 bn in 1Q — while restaurant and hotel saw 4.6% growth.

Trade came out on top: Trade activities accounted for the lion’s share of non-oil GDP at 16.1%, followed by manufacturing (14.6%) and financial and ins. activities (13.4%).

REMEMBER- Abu Dhabi’s non-oil economy grew 4.7% y-o-y in 1Q, with real GDP growing 3.3%. Data out earlier in July also showed Dubai’s economy growing 3.2% y-o-y.

Tags: