Construction and building activities in the UAE experienced a growth rate of 6.2 percent during the first quarter of this year compared with the same period last year, according to the preliminary estimates issued by the Federal Competitiveness and Statistics Centre (FCSC).

 

This growth reflects the several development projects initiated by the UAE government in early 2024. The sector saw a substantial rise in the government's public capital expenditures, reaching AED4.8 billion ($1.31 billion), said a Wam news agency report quoting the data.

 

The UAE's real GDP reached AED430 billion ($117.07 billion) in Q1 2024, recording a remarkable growth of 3.4 percent compared to the same period in 2023, according to the FCSC estimates.

 

The non-oil GDP grew by 4 percent compared to the same period last year, a Wam news agency report said.

 

Construction and building activities contributed 11.8 percent and real estate activities 7.1 percent.to the non-oil GDP. Trade activities made the largest contribution to the non-oil GDP, accounting for 16.1 percent of the total. Manufacturing activities come in second at 14.6 percent, with financial and insurance activities ranking third at a rate of 13.4 percent. 

 

Abdulla bin Touq Al Marri, Minister of Economy, said that the data underlines the resilience and vitality of the national economy and exemplify its ability to continue on the path of sustainable growth.

 

"Under the guidance of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, and the directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, the country adopted an innovative economic model that supports its future vision, along with effective national economic strategies, enhancing openness to the world, promoting partnerships, and transitioning towards an economic model based on flexibility and innovation," Bin Touq added.

 

He emphasised that the national economy's positive results reinforce achieving the economic objectives of the "We the UAE 2031" vision, which includes raising the country's GDP to AED3 trillion by the next decade.

 

Hanan Ahli, Managing Director of the Federal Competitiveness and Statistics Centre, said: "The financial and economic data and indicators endorsing the growth of the UAE's GDP Q1 2024 reflect the resilience of the country's vital economic sectors. It highlights the effectiveness of the concerted efforts to implement wise leadership's directives to enhance sustainable economic diversification, reduce dependence on oil, promote investments, and attract capital and innovative and emerging projects to the country."

 

She added that the UAE's advanced rankings in multiple global economic competitiveness indicators can be attributed to several factors, including the stability of the financial system, the strength of the national economy, and the effectiveness of economic legislation and policies applied in the country, besides their ability to adapt to changes and face regional and global challenges.