Blacktower FM - Issue 18 - 2026 Magazine - Flipbook - Page 55
LEGACY EDITION
ECONOMICS
KEY SECTORS POWERING NON-OIL GROWTH
In its journey to diversify beyond oil, the UAE has
focused on developing several key sectors that form the
backbone of its non-oil economic growth. These sectors,
strengthened by strategic ini琀椀a琀椀ves, show impressive
resilience and contribute signi昀椀cantly to the na琀椀on’s GDP.
Real estate, tourism, and transporta琀椀on lead the way,
each playing a vital role in sustaining the UAE’s economic
momentum and global compe琀椀琀椀veness.
Real estate
With rapid increases in property transac琀椀ons, par琀椀cularly
in Dubai and Abu Dhabi, the real estate sector has become
central to economic growth. Dubai saw a 37 percent
year-on-year (YoY) increase in real estate transac琀椀ons
in the 昀椀rst 10 months of 2023, reaching over AED
500 billion, driven by investor con昀椀dence and market
resilience. Similarly, Abu Dhabi experienced a 56 percent
YoY increase in residen琀椀al transac琀椀ons, showcasing the
sector’s con琀椀nued appeal.
Tourism and hospitality
Tourism remains an economic powerhouse, bolstered by
the UAE's Na琀椀onal Tourism Strategy 2031. Abu Dhabi’s
hospitality sector recorded a 31 percent increase in hotel
guests YoY in 2023, re昀氀ec琀椀ng the region’s recovery and
growth in visitor numbers. Meanwhile, Dubai con琀椀nued
its posi琀椀on as a top global des琀椀na琀椀on, with hotel
occupancy rates up by 4.9 percentage points compared
to 2022. Both ci琀椀es have seen a strong return to prepandemic levels in tourism, an essen琀椀al component of
economic resilience.
Transporta琀椀on
Re昀氀ec琀椀ng global connec琀椀vity, the UAE’s transporta琀椀on
sector saw a substan琀椀al increase in passenger tra昀케c. Abu
Dhabi Interna琀椀onal Airport recorded a 29.3 percent YoY
growth in passenger numbers in Q3 2023, and Dubai
Airports projected a total of 86.8 million passengers
for 2023. This growth underscores the UAE’s strategic
loca琀椀on as a hub, with enhancements in infrastructure
mee琀椀ng interna琀椀onal travel demand.
STRATEGIC INITIATIVES SUPPORTING GROWTH
The UAE’s economic policy framework, highlighted by
Younis Haji Al Khoori, the Undersecretary of the Ministry
of Finance, has embraced reforms that a琀琀ract foreign
investment, streamline business processes, and foster
resilience. Structural changes, new visa programmes,
and favourable tax condi琀椀ons encourage new business
forma琀椀on and skilled workforce in昀氀ows. Moreover, the
government’s commitment to sustainable development,
guided by the ‘Principles of the 50’, aligns with the
na琀椀on’s long-term goals for prosperity and environmental
stewardship.
The proac琀椀ve approach from the UAE for diversi昀椀ca琀椀on
is posi琀椀oning it for con琀椀nued success. With non-oil
sectors thriving and supported by strategic reforms, the
na琀椀on’s resilience and robust growth outlook for 2024
is underscored by insights from Emirates NBD Research,
Middle East Brie昀椀ng, and the UAE Central Bank.
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