Abu Dhabi's GDP Grows By 4.1% In Q2 2024 Driven By Non-Oil Sector Expansion

Abu Dhabi's economy has shown robust growth, with a 4.1% increase in GDP during Q2 2024 compared to the same period last year, according to preliminary estimates from Statistics Centre – Abu Dhabi (SCAD). This growth is primarily driven by the expansion of non-oil sectors, highlighting the emirate's successful economic diversification strategies.

The non-oil sector's contribution to Abu Dhabi's economy reached over 55.2% in Q2 2024, marking its highest share since late 2014. Non-oil GDP rose by 6.6%, achieving a record AED164.2 billion. This underscores the emirate's commitment to reducing reliance on oil revenues and fostering sustainable economic growth.

Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), stated, "The continued strong performance of our economy over the past years is a testament to its resilience and agility in responding positively and timely to mega shifts in the global economy as we are accelerating the transition to diversified, smart, and sustainable economy." He emphasised that these efforts have positioned Abu Dhabi as an emerging economic powerhouse.

The construction sector experienced significant growth, increasing by 11.5% in Q2 2024 compared to the previous year. Its quarterly value reached AED27.5 billion, contributing 9.3% to the emirate’s GDP—the highest since 2015. This reflects ongoing infrastructure development and investment in construction projects across the region.

Manufacturing activities also saw an expansion of 2.6% during Q2 2024 compared to last year, with a quarterly value of AED26.8 billion. This sector now accounts for 9% of Abu Dhabi’s GDP, indicating steady industrial growth and increased production capabilities within the emirate.

The finance and insurance sectors reported remarkable growth of 13.4% in Q2 2024 compared to Q2 2023, contributing 7.4% to GDP with a value reaching AED22 billion. This highlights Abu Dhabi’s status as a competitive global investment destination.

The wholesale and retail trade sector grew by 3.3%, achieving its highest value at AED16 billion and contributing 5.5% to GDP in Q2 2024 compared to the same quarter last year.

Additional Sector Growth

Transportation and storage activities expanded by an impressive 15.2%, reaching AED7 billion and contributing 2.4% to GDP in Q2 2024. Real estate activities also grew by 5.5%, reaching AED10 billion and contributing 3.4% to GDP during this period.

The information and communication sector achieved a record value of AED8.5 billion, growing by 4.4% compared to last year’s second quarter figures, contributing significantly at 2.8% towards total GDP for that period.

Future Prospects

Abdulla Gharib Alqemzi, Director-General of SCAD, remarked on Abu Dhabi’s economic progress: "The statistical estimates of Abu Dhabi’s GDP for Q2 2024 reflects a remarkable progress." He noted substantial contributions from key sectors like manufacturing, construction, and finance which have achieved their highest quarterly values.

Abu Dhabi's non-oil economy has consistently grown over recent periods with a notable quarterly increase of 4.7% in Q1 2024 and an annual surge of 9.1% in 2023 driven by key sectors such as industry, finance, and construction.

With inputs from WAM