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The UAE's economy grew 3.8% on an annualised basis in Q1 2023 supported by its non-oil sector as the oil producer pursues a diversification strategy.
GDP in the three months to the end of March rose to 418.3 billion dirhams ($113.9 billion), adding AED15 billion from the same period last year, Abdulla bin Touq, Minister of Economy, said on Tuesday, quoting preliminary estimates from the Federal Centre for Competitiveness and Statistics.
The non-oil GDP totaled AED 312 billion, rising 4.5% year-on-year. Most sectors and economic activities contributed, the minister said.
The World Bank expects the UAE to grow around 3.4% from 2.8% in 2023. The growth will be led by the non-oil sector, including tourism real estate, construction and manufacturing, according to the World Bank projections.
The UAE grew at 7.6% last year, one of the highest rates of economic growth globally, the Ministry of Economy stated.
For Q1 this year, the ministry said the transport and storage sector notched the highest growth, rising 11% on an annual basis to AED21.8 billion.
The construction sector followed with 9.2% YoY growth to AED36.3 billion, followed by accommodation and food services, which grew 7.8%
The finance and insurance sector recorded 7.7% growth, while wholesale and retail sector grew by 5.4%.
Bin Touq said the latest economic results reflect the UAE's progress in diversifying and sustaining its economy.
"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.”
(Reporting by Brinda Darasha; editing by Seban Scaria)
