February 23, 2026
Methodology About Newsletter
WE THE UAE 2031
The Vanderbilt Terminal for the UAE's National Transformation
INDEPENDENT GLOBAL INTELLIGENCE FOR THE UNITED ARAB EMIRATES
UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% | UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% |

Definition

GDP diversification refers to the deliberate strategy of broadening a country’s gross domestic product across multiple industries and revenue streams, reducing reliance on any single sector. For resource-dependent economies, this typically involves developing non-extractive industries such as financial services, technology, tourism, manufacturing, and logistics. Successful diversification increases economic resilience against commodity price volatility and resource depletion.

UAE Context

GDP diversification has been the defining economic objective of the UAE since the 1990s. When the federation was established in 1971, hydrocarbon revenues accounted for the overwhelming majority of national income. Through strategic investment in infrastructure, free zones, tourism, aviation, and financial services, the UAE has achieved significant progress. By 2024, non-oil sectors contributed approximately 70 percent of national GDP. Dubai exemplifies the diversification model with oil accounting for less than five percent of its emirate-level GDP, while Abu Dhabi has invested heavily in tourism, technology, and renewable energy to complement its hydrocarbon base.

Key Data

  • Non-oil GDP share: Approximately 70 percent of national GDP (2024)
  • Key diversification sectors: Tourism, financial services, logistics, technology, manufacturing
  • Vision 2031 target: Further increase non-oil GDP share and economic resilience
  • Dubai non-oil GDP: Over 95 percent of emirate GDP
  • Strategic enablers: Free zones, sovereign wealth investment, infrastructure development

Significance for Vision 2031

GDP diversification is the foundational pillar of the We the UAE 2031 vision. The national agenda explicitly targets reducing hydrocarbon dependence through expansion of technology, renewable energy, advanced manufacturing, tourism, and financial services. Achieving diversification goals requires sustained investment in human capital, regulatory modernization, and innovation ecosystems across all seven emirates.

  • Sovereign Wealth Fund - State-owned investment vehicles funding diversification
  • Free Zone - Designated economic areas attracting foreign investment
  • Dubai - The UAE’s diversified commercial capital
  • Oil Reserves - The hydrocarbon base driving diversification urgency