Abu Dhabi non-oil economy expands 8.6% in 9 months of 2023

The robust economic growth experienced by the emirate had a notable impact on foreign investment which witnessed a significant 9.7 per cent increase

by

Waheed Abbas

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Photo: KT file
Photo: KT file

Published: Fri 29 Dec 2023, 2:28 PM

Last updated: Fri 29 Dec 2023, 10:45 PM

Abu Dhabi achieved 2.8 per cent growth in real GDP over the first nine months of 2023 compared to the same period last year, and a robust 8.6 per cent expansion in non-oil activities during the same timeframe.

According to the Statistics Centre - Abu Dhabi (SCAD), the capital reported 7.7 per cent growth in the real non-oil GDP during the third quarter of 2023, in comparison to the same period in 2022

Preliminary estimates released by SCAD reveal that most of non-oil activities have sustained growth rates, contributing 52.8 per cent to the overall economy. Despite fluctuations in the oil and gas global markets, Abu Dhabi's economy continues to exhibit promising prospects.

Marking a significant milestone, the emirate's economy reached its highest quarterly value at Dh290.5 billion, posting a positive growth of one per cent in real gross domestic product during Q3 of 2023 compared to the same quarter the previous year, despite the decline in oil prices.

“Backed by ongoing diversification strategic programmes, growing engagement of the private sector, and initiatives to attract more quality FDIs and DDIs, Abu Dhabi is cementing its status as a preferred destination for talents, investments, and businesses. We remain committed to continuously and proactively enhancing our vibrant, globally competitive, and entrepreneurial ecosystem to generate lasting opportunities for all, enabling them to reach their full potential, while placing human development and sustainability at the heart of our socio-economic strategies,” said Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development.

Abdulla Gharib Alqemzi, acting director-general of the SCAD, said the third-quarter statistical indicators reflect the economic resilience of the emirate and showcase a consistent growth since the second quarter of 2021. “This growth is attributed to the expanding non-oil activities, mitigating the impact of the global slowdown in oil-related activities. The statistical figures affirm the emirate's proactive efforts to diversify the economy and promote the growth of non-oil sectors.”

Manufacturing activities, which is a leading non-oil activity, reached a value of Dh26.3 billion, contributing over 17 per cent to the non-oil GDP and 9% to the overall GDP in the third quarter of 2023. This underscores the continued success of diversification initiatives, including the Abu Dhabi Industrial Strategy (ADIS) aiming to strengthen the Emirate’s position as the region’s most competitive industrial hub, and the rapid growth of non-oil activities in the Emirate.

In a parallel development, construction activity maintains a positive momentum, achieving a growth rate of 14.3 per cent during the third quarter of 2023 compared to the same period in 2022. The value of construction activity reached Dh25 billion, contributing more than 16.3 per cent to the non-oil GDP and 8.6 per cent to the total economy during the third quarter of 2023.

The transport and storage sector achieved a remarkable growth rate of 20 per cent in the third quarter of 2023 year-on-year, surpassing growth rates in previous quarters. This surge can be attributed to the substantial expansion of the shipping container market and the increased volume of flights and passengers.

Financial and insurance activities experienced a growth of 14.4 per cent during the third quarter of 2023 compared to the same period last year. This growth elevated the value of the sector to Dh18.7 billion, contributing 6.4 per cent to the emirate’s gross domestic product during this period.

The robust economic growth experienced by the emirate of Abu Dhabi had a notable impact on foreign investment, which witnessed a significant 9.7 per cent increase, surpassing an impressive value of Dh831 billion.

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