Abu Dhabi's GDP Increases By 3.8% In Q2 2025, Fueled By Strong Non-Oil Sector Growth

The Statistics Centre – Abu Dhabi (SCAD) reported that the emirate's real GDP reached AED306.3 billion in Q2 2025, marking a 3.8% rise from Q2 2024. The non-oil sector grew by 6.6% year-on-year to AED174.1 billion, making up 56.8% of the total GDP for the first time in a second quarter.

In H1 2025, Abu Dhabi's economy maintained its growth trajectory, with real GDP reaching AED597.4 billion, reflecting a 3.63% increase compared to H1 2024. Non-oil activities showed stronger momentum, expanding by 6.37% year-on-year to AED337.6 billion.

The non-oil sectors have emerged as key drivers of economic growth, accounting for 56.8% of GDP and achieving a 6.6% annual growth in Q2-2025. Key sectors such as manufacturing, construction, finance, real estate, and ICT have been instrumental in this growth.

Manufacturing remained the largest non-oil contributor with AED30.1 billion, representing 9.8% of total GDP and growing by 3.1% year-on-year. This reflects the success of the Abu Dhabi Industrial Strategy (ADIS), which has driven a significant increase in industrial GDP since 2022.

Construction activities rose by 9.7% to AED30 billion, driven by major infrastructure and housing initiatives like the AI-powered Binaa platform that reduces building permit times significantly.

Finance and insurance activities expanded by 10.3%, contributing AED21.8 billion or 7.1% of GDP, supported by Abu Dhabi’s growth as a financial centre.

Real estate activities reached AED11.7 billion in Q2 2025, marking a 10.2% annual increase and benefiting from strong population growth and foreign investor confidence.

Digital Transformation

The information and communications sector grew by 6% year-on-year to AED8.6 billion, contributing 2.8% of GDP due to the emirate’s Digital Strategy aiming to automate government services with over 200 AI solutions.

The wholesale and retail trade sector expanded by 1.6%, contributing AED16 billion or 5.2% of GDP, fuelled by rising consumer spending and tourism recovery.

Strategic Initiatives

The professional services sector grew by 10%, reaching AED9 billion and indicating a shift toward a knowledge-based economy with increasing demand for specialised services.

Transportation and storage expanded by 7.5%, driven by logistics hubs like KLP21 at KEZAD, while electricity, gas, and water supply recorded the highest growth at 12.5%, supported by long-term energy strategies.

Economic Resilience

The consistent economic performance highlights Abu Dhabi's resilience and strategic diversification efforts across various sectors like manufacturing, construction, finance, real estate, and ICT.

"The consistent growth of Abu Dhabi’s GDP over the past few years underscores the emirate’s position as a dynamic economic hub guided by an ambitious vision," said Ahmed Jasim Al Zaabi from ADDED.

"The consecutive records achieved in Q1 and Q2 highlight not only economic strength but also effective policy planning grounded in high-quality data," said Abdulla Gharib Alqemzi from SCAD.

These results illustrate an upward trajectory driven by strategic investments and governance as Abu Dhabi accelerates its digital transformation towards becoming an AI-native government.

With inputs from WAM