Abu Dhabi’s Non-Oil Sectors Surge By 9.1%, Elevating GDP Growth To 3.1% In 2023

The Statistics Centre - Abu Dhabi (SCAD) recently unveiled preliminary estimates for the Gross Domestic Product (GDP) of Abu Dhabi in 2023, showcasing a robust economic performance. The non-oil sectors have particularly flourished, recording a significant growth of 9.1 percent. This surge has propelled Abu Dhabi's real GDP to grow by 3.1 percent compared to the previous year. The final quarter of 2023 alone witnessed a 4.1 percent growth in the economy, with non-oil sectors expanding by an impressive 10.4 percent during this period.

Abu Dhabi's strategic initiatives aimed at diversifying its economy have borne fruit, as evidenced by the strong performance of non-oil sectors such as construction, finance and insurance, and transportation and storage. These sectors collectively contributed over 53 percent to the total GDP. The industrial, finance, and tourism sectors have seen substantial development, bolstered by foreign investment and the nurturing of the private sector to generate new employment opportunities.

In a remarkable achievement, Abu Dhabi's GDP in 2023 reached its highest value in a decade, amounting to AED1.14 trillion. This milestone underscores the effectiveness of strategic policies focused on economic diversification, innovation, and entrepreneurship. Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), praised the exceptional growth in targeted sectors and clusters, positioning Abu Dhabi as a leading economic hub that attracts talent, businesses, and quality investments.

Abdulla Gharib Alqemzi, Acting Director-General of SCAD, lauded the emirate's dedication to diversification and innovation. He highlighted that non-oil economic activities now contribute more than half of the GDP, thanks to incentive policies that have optimized business and investment opportunities.

Key sectors such as construction and manufacturing have seen notable advancements. Construction activities surged by 13.1 percent in 2023, with manufacturing making a significant contribution to the GDP during this period. The financial and insurance sector outperformed others with a growth rate of 25.5 percent, reflecting global confidence in Abu Dhabi's economy. Additionally, wholesale and retail trade expanded by 7.9 percent, while transportation and storage activities grew by 17.1 percent.

Other sectors including health and education, information and communication, real estate, arts and recreation, and accommodation and food services also experienced positive growth trends. This diverse economic expansion highlights Abu Dhabi's success in becoming a global business center and a prime destination for events.

In conclusion, Abu Dhabi's economy has demonstrated remarkable strength and resilience, achieving its highest GDP value in ten years. The concerted efforts towards economic diversification and innovation have significantly contributed to this success, making Abu Dhabi an appealing locale for investors, entrepreneurs, and talents from around the globe.

With inputs from WAM