Distribution of real GDP UAE 2020, by sector

In 2020, the extractive industries, including oil and natural gas, accounted for the largest share of real gross domestic product (GDP) in the United Arab Emirates (UAE), representing just over 17 percent. The wholesale and retail trade industries followed closely at approximately 13.6 percent.

Conventional versus renewable energy

In the United Arab Emirates, extractive industries have long been the backbone of the domestic economy, contributing over 217 billion UAE Dirham to the country’s GDP in 2020. The UAE has also been ranked among the global leaders in crude oil production. However, the country is diverging from such conventional energy sources for the sake of a more environmentally sustainable economy. The UAE is working towards 30 percent of renewable energy by 2030, while the UAE Strategy 2050 further targets a contribution of 50 percent of clean energy to the energy mix.

Non-oil economic sectors on the rise

Despite the availability of vast deposits of fossil fuels and the country’s historical dependency on these natural resources, the UAE has also been striving towards a more diversified economy. Among the country’s non-oil industries, tourism and hospitality have contributed significantly to domestic economic growth. The pandemic-delayed Dubai Expo 2020 has cushioned the initial shock of COVID-19, offering a worthwhile opportunity for recovery and growth for the UAE tourism-related industries.