MUDHI ALOBTHANI (ABU DHABI)
The UAE continues to demonstrate remarkable progress in reshaping its economy beyond oil dependence, emerging as a regional model for diversification and clean energy leadership.
In an interview with Aletihad, Amna Alketbi, Head of the Economics Section at the Emirates Center for Strategic Studies and Research (ECSSR), said that the country’s strategic approach has turned diversification from a policy ambition into an economic reality.
According to Alketbi, non-hydrocarbon sectors now account for nearly 75% of the UAE’s GDP, confirming the success of structural reforms and strategic investments.
“Public policies have played a crucial role in the shift from resource-rent reliance towards value-added industries, advanced services, trade, logistics and clean energy,” Alketbi noted, emphasising that while oil remains important for fiscal stability, the UAE’s economy is now much broader and more resilient.
Trade, manufacturing, and finance have become the leading contributors to non-oil GDP, with trade alone accounting for 16.5%. Manufacturing follows at 15%, while financial and insurance activities contribute 12.5%. These figures highlight the nation’s success in reducing its exposure to oil-price shocks by expanding into productive and knowledge-based sectors, Alketbi said.
A central pillar of this transformation is the UAE’s clean energy strategy, which Alketbi described as “a strategic engine for long-term sustainability and growth”. The country plans to invest $54 billion in clean and renewable energy by 2030, bolstering its commitment to net-zero emissions by 2050.
Large-scale initiatives – such as the Mohammed bin Rashid Al Maktoum Solar Park – exemplify the UAE’s drive to integrate renewables into its power mix, which is expected to reach 30% clean energy by 2030.
Policy measures such as public-private partnerships, market liberalisation, and industrial incentives have encouraged private-sector participation and fostered innovation in renewable technologies, she noted. These frameworks not only enhance the UAE’s domestic energy efficiency but also position it as a global hub for clean technology investment and expertise, Alketbi added.
Internationally, the UAE stands out among resource-dependent economies for the speed and depth of its diversification. “Compared to many peers, the UAE has moved faster in building a service-oriented, technology-driven economy,” Alketbi explained. Strong governance, access to capital, and a clear vision have allowed the nation to overcome institutional barriers that continue to limit progress in other regions, she noted.
The UAE’s clean energy push has also strengthened its global competitiveness and economic diplomacy. Through initiatives like Masdar and strategic investments abroad – totalling $110 billion between 2019 and 2023, including $70 billion in renewable projects across Africa – the country has redefined its role from oil producer to sustainability leader. This international engagement supports knowledge exchange, attracts foreign investment, and enhances the UAE’s influence in shaping global energy and climate policy.
Looking ahead, Alketbi anticipates that the next decade will focus on green hydrogen, carbon capture, circular economy innovations and digital-industrial integration. The UAE’s diversification, she said, will shift from “broadening to deepening”, as policies increasingly target high-value manufacturing, export-oriented clean technology and digital transformation.