Abu Dhabi's non-oil economy grows over 9% in 2023

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Abu Dhabi's non-oil economy recorded a growth of 9.1 per cent during 2023, according to preliminary estimates released by the Statistics Centre - Abu Dhabi (SCAD).

SCAD also reported a 3.1 per cent growth of Abu Dhabi’s real GDP during 2023, compared to 2022.

The results demonstrate the economy’s ability to expand, making significant strides in the construction, finance and insurance, and transportation and storage economic activities, contributing over 53 per cent to the total GDP.

During Q4 2023, Abu Dhabi’s economy achieved a growth of 4.1 per cent compared to the same period in 2022, showing continued growth driven by the expansion of non-oil sectors which achieved 10.4 per cent during the same period.

The emirate’s economy achieved robust growth rates, evident in 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.

The emirate’s gross domestic product in 2023 achieved its best performance in terms of value in ten years at AED 1.14 trillion, despite worldwide challenges and global market fluctuations. 

His Excellency Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development, said the growth rate was the highest in the MENA region and reaffirmed Abu Dhabi's status “as a leading, innovative economic powerhouse and magnet for talents, businesses, and quality investments.

“We are delivering the ambitious objectives...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."

His Excellency Abdulla Gharib Alqemzi, Acting Director General of the Statistics Centre - Abu Dhabi, said "the contribution of the non-oil activities to the GDP reached more than 53 per cent, thanks to the adoption of the incentive policies that enabled talents, entrepreneurs, and investors to make optimal use of business and investment opportunities in Abu Dhabi."

Statistical estimates showed growth in construction activities by 13.1 per cent in 2023, with the added value of the sector reaching more than AED 97 billion, the highest in ten years, while contributing 8.5 per cent to the emirate’s gross domestic product during the same period. Also, the added value of manufacturing activities during the year 2023 was recorded at AED101 billion, representing 8.8 per cent of the total gross domestic product, marking the largest non-oil contributor to overall GDP during the period.

The financial and insurance activities achieved the highest growth rate at 25.5 per cent and their best performance in terms of value at AED 79 billion, with a contribution to the GDP exceeding 6.9 per cent, 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.

Wholesale and retail trade activities achieved a growth of 7.9 per cent, with their added value reaching approximately AED 63 billion, with a contribution rate exceeding 5.5 per cent to the emirate’s gross domestic product.

In a related context, transportation and storage activity achieved growth of 17.1 per cent. 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 per cent, while information and communication activities and real estate activities achieved a growth of 5.8 per cent during the same period. The growth rate of arts and recreation activities reached 7.8 per cent, while accommodation and food services recorded a growth of 3.1 per cent.

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