How UAE became one of the world's largest economies

The United Arab Emirates has firmly established itself as one of the world’s fastest-growing economies, now ranked as the fifth-largest by real GDP growth, according to the International Monetary Fund (IMF).

What was once a collection of small trading hubs has become a global leader in tourism, real estate, and commerce, attracting businesses and visitors from across the globe.

Let’s explore the sectors that have shaped the UAE’s rise:

Tourism: becoming a global landmark

Tourism in the UAE is more than an industry; it’s an experience. Burj Khalifa, the world’s tallest building, attracts millions each year and reflects the nation’s remarkable architectural ambition

Equally iconic is the Dubai Mall, a shopper’s paradise and entertainment hub, which welcomed a staggering 57 million visitors in the first half of 2024 alone, according to the Emirates News Agency, WAM.

Beyond the glitz, these landmarks fuel an economic engine. The Ministry of Economy reported that revenues from the nation’s hotel establishments exceeded AED 24.6 billion in H1 2024, a 7% year-on-year increase.

Yet, the allure isn’t confined to Dubai. Across all seven emirates, tourism is on the rise, with 15.3 million hotel guests recorded in the first half of 2024 — a 10.5% increase that highlights the country’s growing draw for both leisure and business travelers.

Real estate: building the future

The UAE’s skyline is a visual representation of its booming real estate market. Dubai’s residential sector saw sales transactions rise 35.6% year-to-date, according to JLL, driven by a 50.3% surge in off-plan property transactions in Q3 2024.

Meanwhile, Abu Dhabi’s secondary market sales jumped 44.3%, with both apartment and villa prices showing robust year-on-year growth.

These numbers tell a larger story of confidence and opportunity. Developers are not just selling properties; they are crafting lifestyles. From luxurious waterfront villas to urban apartments offering sweeping city views, the UAE’s real estate market continues to cater to a diverse, global clientele.

Free zones: enabling business growth

The UAE’s rise as an economic powerhouse owes much to its innovative free zones. These hubs of commerce, such as Jebel Ali Free Zone (JAFZA) and the Dubai International Financial Centre (DIFC), offer businesses tax incentives, cutting-edge infrastructure, and streamlined regulations.

JAFZA, recently awarded Industrial Zone of the Year, hosts over 10,700 businesses, cementing its role in Dubai’s industrial output. Meanwhile, DIFC has emerged as a global financial hub, with active registered companies surpassing 6,000 — a 24% year-on-year growth.

Non-oil sectors and the way forward