The UAE economy is growing by 36% in 10 years in its bet away from oil

August 17th

Only ten years, during which the United Arab Emirates succeeded in transforming its economy, towards a multiple and diversified economy, away from oil and natural gas sources, and based on promising and new sectors, as the latest data of the “Federal Center for Competitiveness and Statistics” confirm the extent and size of the growth achieved economy away from oil.

The country’s gross domestic product grew at constant prices in 2022, by an average rate of 7.9%, at a value of 1.62 trillion dirhams, compared to the previous year, in which the country achieved a domestic product of 1.5 trillion dirhams, and also by 36%, compared to 2012, which at that time amounted to 1.19 trillion. dirhams.

The state’s non-oil gross domestic product grew, within 10 years, by 46%, to reach more than 1.17 trillion dirhams in 2022, compared to 2012, which at that time amounted to 803.6 billion dirhams.

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The country’s economy achieved levels of growth that exceeded what it achieved in 2019, specifically, before the spread of the “Covid-19” pandemic that ravaged the global economy, as the country’s gross product at constant prices rose 7% from 1.51 trillion dirhams to 1.62 trillion dirhams.

The state’s non-oil output also increased by 8% compared to 2019, as it was recorded before the spread of the “Corona” pandemic, 1.087 trillion dirhams, and rose to 1.174 trillion dirhams in 2022.

Back in 2012; The contribution of the oil and gas sectors and extractive activities related to the sector amounted to about 33% of the total gross domestic product at constant prices, representing a value of 389 billion dirhams. 67% of the state’s output in that year came from non-oil activities, the most important of which are: non-financial sectors such as agriculture, wholesale trade, manufacturing industries, electricity, construction, residence, etc., in addition to the financial sector and insurance, public administration, defense, social security, and household activities, where they contributed collectively With 803 billion dirhams of the state’s output.

and in 2022; The contribution of the oil and gas sector in the country’s economy decreased to about 27%, compared to 73% for non-oil activities, as the contribution of oil activities amounted to about 449 billion dirhams, while non-oil activities represented more than 1.17 trillion dirhams.

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Exponential growth

The UAE economy depends on 17 main activities and sectors, which are divided into two types: (non-oil sectors) and include sectors such as “finance and insurance”, “public administration and social security”, “household households”, “agriculture”, “industry” and others, on the opposite side, (oil and gas sector). All of these 17 activities have achieved varying growth in their contribution to the country’s GDP over the past ten years, as non-financial activities increased by 43% from 1.04 trillion dirhams in 2012 to 1.4 trillion dirhams in 2022.

Non-financial activities include: agriculture, forestry and fishing, which grew by 58% to 14 billion dirhams in 2022, compared to 8.8 billion dirhams in 2012. As for the manufacturing industries, they grew by 92% to 179 billion, compared to 94 billion dirhams in 2012, and achieved Electricity, water and waste management activities grew by 38% from 30.4 billion dirhams in 2012 to 42 billion in 2022.

The value of the contribution of the construction sector increased by 12% to 130 billion, compared to 115.5 billion dirhams, and wholesale and retail trade and repair of motor vehicles and motorcycles, it grew by 52% to 206 billion dirhams, compared to 135.5 billion dirhams, and the transport and storage sector from 69 billion. In 2012 to 78 billion in 2022, a growth of 13.5%, and accommodation and food services activities, which rose 38% to 31 billion, compared to 22.5 billion dirhams. Information and communication activities, which grew by 54% to reach 47.7 billion dirhams, compared to 31 billion dirhams.

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As for financial and insurance activities, it increased by 63% to 134 billion dirhams, compared to 82 billion dirhams in 2012.

Real estate activities grew by 41% to reach 90 billion dirhams, compared to 63.8 billion dirhams in 2012, and professional, scientific and technical activities and administrative services rose 25% to 65.5 billion dirhams, compared to 52.4 billion dirhams. The activities of public administration, defense and social security increased by 41% to 89 billion, compared to 63.2 billion dirhams.

Education services also achieved a strong growth rate of 98% to 24.7 billion dirhams, compared to 12.4 billion dirhams, and health and social activities increased by 126%, which is the highest growth at 26 billion, compared to 11.5 billion dirhams, and entertainment, arts, recreation and culture services increased by 31 % to 8 billion, compared to 6.1 billion dirhams. And household activities as an employer, it also increased by 98% to reach 10.6 billion dirhams, compared to 5.3 billion dirhams.

On the other hand, oil and gas activities increased by an average rate of 15.5% to 449 billion dirhams in 2022, compared to 388.6 billion dirhams in 2012.

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promising contribution

Returning to the contribution of the 17 activities that form the backbone of the country’s economy, oil and gas activities accounted for about 27% of the country’s total gross product at constant prices, with a value of 449 billion in 2022, and achieved a growth of 9.5% compared to 2021.

Wholesale and retail trade and vehicle repair, which constitutes 12.7% of the country’s economy, with a value of 206 billion dirhams, has grown by 4.3% compared to 2021.

The manufacturing industry, which represents 11% of the country’s economy, with a value of 179 billion, has also grown by 8.7% compared to 2021.

Financial and insurance activities contributed to 8.2% of the state’s GDP, at a value of 134 billion, a growth of 8.5% compared to 2021, and the construction and building sector, as it contributed 8% of the state’s output in 2022, at a value of 130 billion, a growth of 5%, and real estate activities that account for about 5.5%. % of the country’s output, at a value of 90 billion, it grew by 12%.

And the activities of public administration, defense and social security by about 5.5%, with a value of 89 billion, it decreased by less than 0.5%. Transportation and storage, which contributed 4.8% of the country’s economy at a value of 78 billion, has witnessed