The UAE economy grew by an annual 3.7% in the first half of 2023, fuelled by robust non-oil sector growth, said Minister of Economy Abdulla bin Touq

Although the rate of economic growth in the first six months of the year “may seem modest” compared to 2022, it is still “robust growth against the backdrop of global and regional uncertainty,” according to Mr bin Touq at the AIM summit in Dubai on Monday.

In addition, the “staggering” 5.9% growth in the non-oil sector in the first half of the year is “even better news”, as it makes up 71% of GDP, highlighting the success of the UAE’s diversification initiatives.

“The UAE’s economic growth is a testament to our resilience, diversification and commitment to openness and international cooperation,” the Minister of Economy stated.

“As we look ahead, we are more determined than ever to build a sustainable and inclusive economy. Our policy and initiatives are firmly anchored in a vision of prosperity for people and a thriving business environment and the leadership role in global affairs.”

Non-oil GDP in the UAE increased by 4.5% on an annual basis to Dh312 billion ($84.9 billion) in Q1.

Furthermore, the UAE’s economy made a strong rebound in 2022 from the pandemic-fuelled slowdown, growing by 7.9% last year, an 11-year high, to Dh1.62 trillion at constant prices, The National reports.

In Q1 this year, the UAE’s economy grew by 3.8% on an annual basis to Dh418.3 billion ($113.9 billion), from Dh403.3 billion a year ago, the Minister of Economy said in August, according to initial estimates from the Federal Centre for Competitiveness and Statistics.

Growth momentum is forecast to continue in the second half of the year, with GDP set to grow 3.6% in 2023, the Minister added.

A series of government measures have boosted the resilience of the economy despite inflation challenges, monetary policy uncertainty and a global economic growth slowdown.

“These external factors have tested the resilience and adaptability of countries and economies worldwide and have posed significant challenges to economies around the world,” Mr bin Touq stated.