UAE continues to post robust growth in non-oil sectors: OPEC

The UAE continues to demonstrate robust growth in its non-oil sectors, driven by strong government support and solid demand, according to the Organisation of the Petroleum Exporting Countries (Opec).

The UAE’s non-oil GDP registered a significant y-o-y increase of 7.3% in Q2 2023, with major contributions from the construction, finance and insurance sectors, it stated in the May report.

This momentum appears to have carried through 2023, particularly in Abu Dhabi, where non-oil GDP grew by 10.4% YoY in Q4 2023, it added.

The report further showed that Dubai’s economy expanded by 3.5% YoY in the third quarter, with notable growth in transportation and storage at 12% and accommodation and food services activities at 16.1%.

The construction sector in Dubai expanded at a more moderate pace of 1.1%, it stated.

Meanwhile, the Central Bank of the UAE has kept its key policy rate steady at 5.4% unchanged since July 2023. The seasonally adjusted S&P Global PMI for the UAE reached 55.3 in April, down from 56.9 in March and 57.1 in February, but remains in expansionary territory, indicating continued growth.