(MENAFN) The UAE's economy demonstrated resilience and growth in 2023, expanding by 3.6 percent, primarily driven by robust growth in the non-oil sector, aligning with the country's ongoing diversification efforts. Preliminary estimates from the Federal Competitiveness and Statistics Centre revealed that the country's gross domestic product (GDP) reached Dh1.68 trillion (USD456.56 billion) at constant prices last year.

Meanwhile, at current prices, the UAE's GDP stood at Dh514.13 billion, reflecting an annual expansion of approximately 2.3 percent. Notably, the non-oil sector witnessed significant growth, expanding by 6.2 percent to Dh1.25 trillion in 2023, while the oil and gas sector experienced a contraction of 3.1 percent.

Among various sectors, financial services emerged as the fastest-growing sector in 2023, recording a notable year-on-year expansion of 14.3 percent, following a 6.6 percent growth in 2022. Other sectors contributing to the country's economic growth included transport and logistics, construction, and real estate services.

Khatija Haque, head of research and chief economist at Emirates NBD, highlighted the UAE's economic resilience in the face of external challenges and higher interest rates in 2023. She emphasized the role of public sector investment, particularly in infrastructure projects like the expansion of the Etihad Rail network and Al Maktoum Airport, in supporting non-oil GDP growth.

Looking ahead, Haque anticipates continued robust public sector investment to sustain non-oil GDP growth, offsetting any potential moderation in private-sector investment and household consumption.

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