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UAE’s non-oil economy to grow nearly 5% in 2024

By Pramod Kumar
The UAE's construction sector remains a key economic driver, underpinned by continued government investment in major infrastructure projects Unsplash.com/Josue Isai Ramos Figueroa
The UAE's construction sector remains a key economic driver, underpinned by continued government investment in major infrastructure projects

The UAE’s non-oil economy is projected to grow by 4.7 percent in 2024, thanks to economic diversification and fiscal surpluses that help overcome global challenges, a senior executive of UBS Global Wealth Management has said.

The non-oil sector is heading towards sustainable growth, supported by a booming tourism and real estate sectors, increased government spending on capital projects, and strong foreign direct investment inflows, the UAE state-run Wam news agency reported, citing UBS chief investment officer Michael Bolliger.

The UAE’s real estate sector is expanding, with residential sales up 60 percent and an increase in mortgage applications driven by low interest rates.

Eased visa procedures and business ownership laws have bolstered foreign business and tenant influx, increasing investment in commercial properties across Dubai and Abu Dhabi.

The construction sector remains a key economic driver, underpinned by continued government investment in major infrastructure projects, Bolliger said.

The UAE’s tourism sector is experiencing significant growth, he said, adding that Dubai’s tourism industry has not only recovered to pre-pandemic levels but international visitor numbers have steadily increased since the start of the year.

Oil GDP is expected to grow by 4.2 percent in 2025, the UBS executive said, adding the UAE economy will continue its growth momentum and maintain its positive trajectory in the coming years.

In October, the International Monetary Fund forecast the UAE’s gross domestic product to grow by 4 percent in 2024, rising to 5.1 percent next year.

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