The United Arab Emirates (UAE) economy is predicted to expand by 5.7% in 2024 after overcoming economic challenges. This is in line with the UAE Central Bank’s most recent forecast. The leading industries in the UAE are also essential to this growth.
Here are the top Five industries, responsible for the UAE’s growth.
Hospitality
The UAE government is aware of the potential in its travel and hospitality sector. The UAE Tourism Strategy 2031 aims to bring in $27 billion in new investment from overseas. It also hopes to have 40 million hotel visitors by 2031. Data indicates that the nation is expected to have a more thriving tourism industry.
Logistics
The UAE’s transportation sector is one of its most important industries, per a Bank Audi analysis. The industry’s growth in 2023 was also primarily fueled by high rates of urbanization, initiatives to promote tourism, and both internal and external logistical connectivity.
Real estate
The UAE has a thriving real estate market, which is bolstered by favorable work-life policies, top-notch projects, and government initiatives and incentives.
The Abu Dhabi real estate market is off to a great start. In January 2024 alone, transactions totaling $1.36 billion were recorded. According to DARI, these transactions include both sales and mortgage agreements.
According to ValuStrat, the residential capital values of the UAE capital are expected to increase by 3% to 5% this year.
Dubai also saw $9.6 billion in sales in the same month, following a similar pattern.
Construction
The UAE has a significant presence in the Middle East construction market, because of enormous and well-known projects like the Burj Khalifa, Palm Jumeirah, and Dubai Marina. The industry has been steadily expanding, and in 2023 its value will reach $38.99 billion.
Oil and gas
The United Arab Emirates stands as one of the world’s leading oil producers, with an expected output of 3.30 million barrels per day (mbpd) in 2023. Three-quarters of the nation’s oil reserves are in Abu Dhabi.
ADNOC, the state-owned company, is a prominent player in the industry. ADNOC wants to reach a maximum sustainable production capacity of 5 million barrels per day by 2030.
Furthermore, by the end of the same year, the company wants to reduce its operational greenhouse gas emissions by 25%. Achieving net-zero emissions by 2050 is in line with the nation’s objectives.
