Vienna: In its latest update, the Organisation of the Petroleum Exporting Countries (OPEC) highlighted the sustained expansion of the United Arab Emirates (UAE) non-oil sectors, attributing this growth to robust government backing and resilient demand.
According to OPEC’s May report, the UAE witnessed a notable year-on-year surge of 7.3 percent in the non-oil Gross Domestic Product (GDP) during the second quarter of 2023. Key contributors to this growth included the construction, finance, and insurance industries. This positive momentum extended into 2023, particularly in Abu Dhabi, where the non-oil GDP surged by 10.4 percent year-on-year in the fourth quarter of the same year.
The report further revealed that Dubai’s economy expanded by 3.5 percent year-on-year in the third quarter of 2023. This growth was particularly prominent in the transportation and storage sectors, which experienced a remarkable 12.0 percent increase, along with accommodation and food services activities, registering a robust growth rate of 16.1 percent. However, the construction sector in Dubai recorded a more moderate growth rate of 1.1 percent.
Meanwhile, the Central Bank of the UAE has maintained its key policy rate at 5.4 percent since July 2023, indicating stability in monetary policy. Despite a slight decrease in the seasonally adjusted S&P Global Purchasing Managers’ Index (PMI) for the UAE, which declined to 55.3 in April from 56.9 in March and 57.1 in February, the index remains in expansionary territory. This suggests a continued trajectory of growth for the UAE’s non-oil sectors.
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