Capital expenditure on projects and other productive sectors in the UAE surged by nearly 15.4 percent in 2024 and this spurred most non-oil sectors, the Central Bank says.

Public capital spending increased to nearly 20.7 billion UAE dirhams ($5.6 billion) last year as the second largest Arab economy pushed ahead with reforms to expand its non-oil sector.

“The increase in public capital spending last year underscored the UAE government’s commitment to advancing large-scale infrastructure projects and enhancing the country’s economic and investment landscape,” the Central Bank said in a report last week.

The report said high investment boosted most non-oil sectors in the UAE, mainly real estate, tourism and transport.

“The residential real estate market in the UAE remained robust in 2024, with an increase in sales transactions demonstrating strong demand from both local and international investors,” it said.

While there was a 6 per cent fall in residential real estate sale transactions in Abu Dhabi, the apartment segment showed resilience, with a 14.0 percent Y-o-Y increase, driven by a 55.2 percent Y-o-Y rise in sales of ready units, the report showed.

Dubai led real estate growth in the UAE as it continued its upward trajectory, with transactions surging 42.5 per cent Y-o-Y in 2024.

The apartment segment dominated, growing by 45.5 percent Y-o-Y, with offplan and ready units rising 64.5 percent Y-o-Y and 15.7% Y-o-Y, respectively.

Villa transactions also grew by 25.3 per cent Y-o-Y, supported by a 45.4 per cent Y-o-Y increase in off-plan sales, the report said.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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