Within a decade, the UAE has achieved a remarkable economic transformation, shifting from its heavy reliance on oil and natural gas towards a diversified economy driven by emerging and promising sectors. According to the most recent data from the Federal Competitiveness and Statistics Centre, the UAE has witnessed a substantial 36% growth in its economy, moving away from oil-centric sources.
In 2022, the country’s GDP at constant prices displayed a noteworthy growth rate, averaging 7.9%, reaching a total of Dhs1.62 trillion. This marked a significant increase compared to the previous year when the GDP stood at Dhs1.5 trillion, representing a remarkable 36% rise from the Dhs1.19 trillion recorded in 2012.
Over a decade, from 2012 to 2022, the non-oil GDP of the UAE surged by an impressive 46%, reaching a figure exceeding Dhs1.17 trillion in 2022, in stark contrast to the Dhs803.6 billion reported in 2012. Notably, the country’s economic growth in 2022 surpassed the levels achieved in 2019, before the COVID-19 pandemic struck the global economy. The GDP at constant prices climbed by 7%, surging from Dhs1.51 trillion in 2019 to Dhs1.62 trillion in 2022.
Additionally, the non-oil sector recorded an 8% increase compared to its 2019 performance, rising from Dhs1.087 trillion to Dhs1.174 trillion in 2022. In 2012, the oil and gas sectors and extractive activities accounted for approximately 33% of the GDP at constant prices, equivalent to Dhs389 billion. Meanwhile, non-oil activities led, contributing 67% to the GDP. These activities encompassed various sectors, including agriculture, wholesale trade, manufacturing industries, electricity, construction, residence, financial and insurance services, public administration, defense, social security, and household activities, collectively contributing Dhs803 billion to the GDP.
Fast forward to 2022, and the contribution of the oil and gas sector to the UAE’s economy has decreased to approximately 27%, with non-oil activities dominating at 73%. Oil-related activities accounted for about Dhs449 billion, while non-oil movements soared over Dhs1.17 trillion. The UAE’s economy now thrives on 17 key actions and sectors, illustrating its successful diversification efforts.
Source: Gulftoday