Abu Dhabi’s non-oil GDP grows 9.1 percent in 2023
Abu Dhabi’s non-oil economy grew 9.1 percent in 2023, while real GDP climbed 3.1 percent, compared to 2022 levels, the Statistics Centre – Abu Dhabi (SCAD) said in its preliminary statistical estimates.
The figures demonstrate the economy’s ability to expand amidst the growth of the non-oil economy, making significant strides in the construction, finance and insurance, and transportation and storage economic activities, which contributed over 53 percent to the total GDP.
During Q4 2023, Abu Dhabi’s economy achieved a growth of 4.1 percent compared to the same period in 2022, showing continued growth driven by the expansion of non-oil sectors, which achieved 10.4 percent growth during the same period.
The emirate’s economy grew amid the development of the industrial, finance and tourism sectors, as well as the encouragement of foreign investment and the private sector to provide new job opportunities.
Best performance in 10 years
The emirate’s GDP in 2023 achieved its best performance in terms of value in 10 years at AED1.14 trillion ($310.4 billion), despite challenges and global markets fluctuations which affect all sectors and geographies in the world.
Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development, said: “The impressive performance of our Falcon Economy during the past few years proved the effectiveness of Abu Dhabi’s proactive approach to address the ever-changing dynamics of the global economy. As evidenced by the exceptional growth of targeted sectors and clusters resulting in a 9.1 percent rise of non-oil sectors and 3.1 percent of real total GDP in 2023 compared to 2022’s growth rate which was the highest in the MENA region, Abu Dhabi has reaffirmed its status as a leading, innovative economic powerhouse and magnet for talents, businesses, and quality investments.”
“Guided by the wise leadership’s vision, our Economic Diversification 2.0 is building on these solid foundations to guide the transformative journey towards a smart, inclusive, and sustainable development. We are delivering the ambitious objectives of our multi-polar socio-economic strategy to transform and accelerate the growth by leveraging advanced technologies, innovation, and entrepreneurial ecosystem to enable all reach their full potential in Abu Dhabi, the capital of capital, and expand globally,” he added.
Sector-wise contribution to Abu Dhabi GDP
Statistical estimates showed remarkable growth in construction activities by 13.1 percent in 2023 compared to 2022, with the added value of this sector reaching more than AED97 billion, the highest in 10 years, while contributing 8.5 percent to the emirate’s GDP during the same period. Also, the added value of manufacturing activities during the year 2023 was recorded at AED101 billion, representing 8.8 percent of the total GDP, marking the largest non-oil contributor to overall GDP during this period compared to the year 2022.
The financial and insurance activities achieved the highest growth rate at 25.5 percent and their best performance in terms of value at AED79 billion, with a contribution to the GDP exceeding 6.9 percent, reflecting the growing confidence of the international community in the emirate’s economy, consolidating its position as a preferred destination for investors and business owners.
This positive performance had an impact on wholesale and retail trade activities, which achieved a growth of 7.9 percent, with their added value reaching approximately AED63 billion during 2023 compared to 2022, with a contribution rate exceeding 5.5 percent to the emirate’s GDP.
Transportation and storage activity achieved a growth of 17.1 percent during 2023 compared to 2022. This activity includes all operations related to the transport of passengers and goods by land, sea, and air, handling and storage activities, postal and support activities.
Both health activities and education activities achieved a growth of 5.5 percent during 2023 compared to the year 2022, while information and communication activities and real estate activities achieved a growth of 5.8 percent. The growth rate of arts and recreation activities reached 7.8 percent, while accommodation and food services recorded a growth of 3.1 percent.
Source: https://economymiddleeast.com/news/abu-dhabis-non-oil-gdp-grows-9-1-percent-in-2023/
