UAE reports slight growth of non-oil GDP
The United Arab Emirates is undergoing economic changes as it aims to reduce its dependency on oil.
The United Arab Emirates announced Tuesday a small increase in the non-oil sector’s contribution to the country’s gross domestic product (GDP).
The non-oil sector contribution to the GDP amounted to 72.3% in 2021. In 2020, the contribution was 71.3%. The biggest non-oil contributors to the GDP were hotels and restaurants at 21.3%, retail at 14.1%, and health and social services at 13.8%, the official Emirates News Agency reported Tuesday.
Why it matters: The UAE is seeking to reduce its dependence on oil, so the GDP figures represent a somewhat positive sign. The Gulf state is diversifying in a number of ways. In 2023, the UAE will implement a tax on business profits for the first time ever. They are also cutting business fees in a bid to attract startups.
The UAE is also seeking to become a regional leader in artificial intelligence (AI). To this end, the Dubai International Financial Center announced last month an AI license program.
