The UAE’s 2024 economic data marks a pivotal shift in its development trajectory, with non-oil sectors contributing over 75.5% of real GDP — a clear indicator of the country’s accelerated diversification agenda under the “We the UAE 2031” vision.
The figures, published by the Federal Competitiveness and Statistics Centre (FCSC), reveal that the UAE’s total real GDP for 2024 stood at AED 1.776 trillion, with non-oil GDP contributing AED 1.342 trillion. This structural transformation away from hydrocarbon dependence has far-reaching consequences for investors, corporate entities, and cross-border legal strategies.
Source: Federal Competitiveness and Statistics Centre
Key Non-Oil Contributors and Sectoral Growth
Legal practitioners and business operators should take note of the following non-oil sector performance in 2024:
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- Transport and Storage: +9.6%, driven by aviation and logistics expansion
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- Construction: +8.4%, bolstered by public-private infrastructure projects
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- Financial and Insurance Services: +7%, spurred by fintech and regulatory sandbox reforms
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- Hospitality and Tourism: +5.7%, with visitor numbers rebounding post-COVID
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- Real Estate: +4.8%, supported by freehold reforms and REIT activities
The combined output from trade (16.8% of non-oil GDP), manufacturing (13.5%), finance (13.2%), and construction (11.7%) creates a robust ecosystem for domestic and foreign investors.
Legal Framework Behind the Economic Transformation
This rebalancing of the UAE’s economy reflects not just market forces but deliberate legal and regulatory reforms. These include:
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- Commercial Companies Law Amendments: Permitting 100% foreign ownership in most sectors
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- New Bankruptcy Law Developments: Offering greater restructuring flexibility and clarity on directors’ liability
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- Financial Free Zones Modernization: Including updates from ADGM and DIFC on digital assets, family offices, and regulatory exemptions
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- Tax Reforms: Expansion of the UAE Corporate Tax regime to include thresholds, reliefs, and transfer pricing regulations
Corporate clients are advised to align their operational structures with these regulatory shifts to remain compliant and leverage emerging opportunities.
For a detailed review: UAE Corporate Tax Overview
Non-Oil Foreign Trade: Legal Structuring Gains Importance
The UAE’s non-oil foreign trade reached AED 835 billion in Q1 2025 alone — a year-on-year increase of 18.6%, driven by comprehensive economic partnership agreements (CEPAs) and strategic bilateral relationships.
Businesses entering or expanding in the UAE must now consider trade compliance, customs law updates, and local agency regulations, particularly in manufacturing, agribusiness, and logistics.
Source: Reuters
Legal Outlook and Strategic Recommendations
With GDP projections for 2025 and 2026 pegged at 4% and 5.5% respectively (Central Bank of the UAE), prepare for sustained economic expansion in:
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- Digital economy and artificial intelligence
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- Green hydrogen and renewable energy (Masdar-led initiatives)
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- Cross-border investments and treaty-based protections
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- Corporate governance under ESG frameworks
Companies that restructure their UAE presence to align with sectoral incentives, local Emiratisation mandates, and new licensing models stand to gain regulatory clarity, tax efficiency, and operational resilience.
Conclusion
The UAE’s 2024 economic data validates a strategic pivot away from oil dependency, underpinned by legislative reforms and sectoral liberalization. For our clients, this presents not just an opportunity — but a legal imperative — to reassess corporate structure, regulatory obligations, and compliance frameworks across the UAE and GCC.
