The real estate market, a significant contributor to the non-oil GDP, continues to experience high demand, particularly in urban centers like Dubai and Abu Dhabi. OPEC's report notes that the expansion in this sector has been bolstered by rising investments and a steady influx of expatriates, contributing to increased housing and commercial space demands.
Tourism, another critical sector, has also shown remarkable resilience and growth. The UAE's strategic location and its status as a global hub for travel have kept visitor numbers high, particularly with the return of international travel post-pandemic. Major events, including global conferences and exhibitions hosted in the UAE, have further fueled this growth, making tourism a key player in the economy's overall expansion.
Manufacturing, driven by the government's industrial strategies, has seen a notable rise. The issuance of new industrial licenses surged by 51% last year, according to S&P Global's PMI, reflecting the sector's expanding role in the UAE's economic landscape. The manufacturing sector's growth aligns with the UAE's broader objectives to enhance local production capabilities and reduce dependency on imports.
OPEC's report also highlighted the positive spillover effects from these non-oil sectors on the broader economy. The growth in these areas has contributed to job creation and higher domestic consumption, reinforcing the UAE's position as one of the most diversified economies in the Gulf region.
Despite the global uncertainties, the UAE's non-oil economy appears to be on a stable growth trajectory, supported by strong governmental policies and a favorable business environment. As the world moves toward a more diversified energy mix, the UAE's focus on non-oil sectors will likely play a crucial role in sustaining its economic growth in the years to come.
This continuous expansion of non-oil sectors is essential for the UAE's long-term economic strategy, which aims to reduce reliance on oil revenues and ensure sustainable development across various industries.