UAE non-oil sectors reach 73% of GDP following 3.4% growth surge

The UAE economy expanded by 3.4% in the first quarter of 2024, with non-oil sectors now contributing 73% of the national GDP, according to the latest data from the Federal Competitiveness and Statistics Centre. The figures, released on Thursday, 6 August, indicate a structural shift as the country reduces its historical reliance on crude oil revenues. Non-oil sectors lead growth Financial and insurance activities recorded the highest sectoral growth at 7.9%, followed closely by the transport and storage sector at 7.3%. Construction and real estate also showed resilience, growing at 6.2% as major infrastructure projects in Abu Dhabi and Dubai continue to attract domestic and foreign investment. The manufacturing sector, a core pillar of the "Operation 300bn" strategy, expanded by 5.3% during the same period. The Ministry of Economy stated that these figures follow a broader trend of legislative reforms, including 100% foreign ownership of companies and the introduction of the long-term Golden Visa residency programme. These measures have stabilized the private sector against global commodity price volatility. Implications for the UAE workforce This economic transition is directly impacting the local labour market. The growth in non-oil activities has triggered a rise in demand for specialized roles in fintech, logistics, and renewable energy. For UAE residents and businesses, this diversification provides a buffer against fluctuating oil prices, which previously dictated…