Abu Dhabi Achieves 4.5% GDP Growth In Q3 2024 With Focus On Non-Oil Sectors

Abu Dhabi has demonstrated remarkable economic resilience and growth, with its Gross Domestic Product (GDP) reaching Dh301.8 billion in the third quarter of 2024. This represents a 4.5% increase compared to the same period in the previous year, marking the highest quarterly value ever recorded for the Emirate.

The non-oil sectors, in particular, have shown impressive growth, advancing by 6.6% and underscoring Abu Dhabi's successful economic diversification strategy. Such robust performance is indicative of the Emirate's strong economic momentum and its capacity to exceed global expectations despite prevailing challenges.

The commitment of Abu Dhabi to diversify its economy is further emphasized by the non-oil activities' substantial contribution, which accounted for 54% of the overall economy in the third quarter of 2024. This is a clear testament to the Emirate's strategic efforts in reducing its dependency on oil revenues and fostering a more varied economic landscape.

Strategic Investments Fueling Growth

The financial and insurance sector of Abu Dhabi also showcased significant growth, achieving an 11.6% increase and contributing 6.4% to the Emirate's GDP, with a value added of Dh19.5 billion. This expansion not only highlights Abu Dhabi's emergence as a preeminent financial centre but also underscores the vitality of banking activities, with a notable increase in loans and bank deposits. Such achievements are pivotal in bolstering the Emirate's economic aspirations.

In the same vein, the transport and storage sector exhibited a substantial growth rate of 18%, reaching a value added of Dh7.1 billion in the third quarter of 2024. This surge can be attributed to significant investments in the sector, which led to an increase in cargo volumes and container handling, alongside the bolstering of oil logistics and services. The successful expansion of Abu Dhabi's ports further contributed to this sector's outstanding performance.

The construction sector maintained its growth momentum, expanding by 10% in the third quarter of 2024 and contributing 8.8% to the Emirate's GDP. This growth was fueled by augmented investments in urban infrastructure, reflecting a surge in employment opportunities within this sector. Similarly, the real estate sector recorded a 6.1% growth, contributing 3.5% to the GDP, a clear indicator of the sustained demand for quality real estate in Abu Dhabi.

Sustainable and Competitive Economic Developments

Abu Dhabi's manufacturing sector continued to anchor the non-oil economy, with a value added of Dh29.4 billion in the third quarter of 2024. The sector grew by 2% year-on-year, representing 9.7% of the Emirate's GDP and reaffirming its status as the largest non-oil activity for the seventh consecutive quarter. This underscores the success of Abu Dhabi's industrial expansion efforts, aiming for a sustainable and competitive economy.

The electricity, gas, and water supply sector also demonstrated significant contributions to Abu Dhabi's economy, achieving a value added of Dh5.5 billion and accounting for 1.8% of the GDP. With a growth rate of 5%, this sector reflects the Emirate's dedication to sustainability and efficient resource management.

"The steady performance of Abu Dhabi's economy over the past years reaffirms the effectiveness and efficiency of our multi-dimensional diversification strategy, proactive policies, progressive regulatory frameworks, and countercyclical measures to address mega shifts in the global economy and market fluctuations. The attributes of our soaring Falcon Economy have established us as a rising economic powerhouse and a global magnet for talents, businesses, and investments," explained Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED).

"With our focus on strengthening public-private partnerships to develop high-growth sectors, significant government capital investments continue to supercharge Abu Dhabi's development across key sectors. In 2024, 144 new projects were approved by the Abu Dhabi government with a total budget of Dh66 billion, focusing on vital areas such as housing, education, tourism, and natural resources. Furthermore, strategic investments in transport infrastructure saw the launch of multiple traffic improvement initiatives with a budget exceeding Dh3 billion.

"Major agreements were also secured by Etihad rail with international leaders in rail and infrastructure, pave the way for enhanced connectivity and economic integration. As we move forward, we are doubling down our efforts to accelerate Abu Dhabi's economic growth and transition to a smart, diversified, and sustainable economy, ensuring a brighter tomorrow for the coming generations," he added.

Abdulla Gharib Alqemzi, Director General of SCAD, highlighted, "Abu Dhabi's economic performance reflects the emirate's focus on diversification and its ability to attract sustained investments. Foreign investment, which reached Dh904.5 billion in 2023, underscores Abu Dhabi's proactive approach to fostering a dynamic business ecosystem. This success is underpinned by the Emirate's excellence in services, supported by high-end infrastructure, a robust digitalisation strategy, and the prosperous visionary leadership, which continue to position Abu Dhabi as a global economic hub."

Abu Dhabi's economic achievements in the third quarter of 2024, driven by its diversification strategy and significant sectoral growth, reflect the Emirate's enduring resilience and ambitious vision. With ongoing strategic investments and a focus on sustainability, Abu Dhabi continues to strengthen its position as an economic powerhouse, fostering a thriving future for its citizens and businesses alike.