Abu Dhabi GDP growth hits 3.3% in first quarter of 2024

Abu Dhabi’s gross domestic product (GDP) grew by 3.3 per cent for the first quarter of 2024 compared to the same period in 2023. This growth is primarily due to the positive performance of non-oil economic activities, as per the Statistics Centre – Abu Dhabi (SCAD)’s official release.

Non-oil GDP was a key contributor to the growth metrics and increased by 4.7 per cent in the first quarter of 2024, driven by strong performance in sectors like transportation, construction, finance, accommodation, and food services. These sectors benefited from the government’s economic diversification policies, added SCAD.

Non-oil activities now contribute 54.1 per cent to Abu Dhabi’s economy, the highest since 2015. The value of the non-oil economy reached Dhs154.7bn, while the total economy (including oil) was valued at Dhs286bn for the first quarter of 2024.

Ahmed Jasim Al Zaabi, chairman of Abu Dhabi Department of Economic Development (ADDED) said, “the consistent growth of Abu Dhabi’s economy is due to the the emirate’s resilience and its progress towards becoming a smart, diversified, and sustainable economy.” He noted that the overall 3.3 per cent rise in total GDP and 4.7 per cent growth in the non-oil sector should be attributed to the success of strategic policies combined with a favourable investment climate.

Abu Dhabi GDP sector highlights

Abu Dhabi’s economic performance in Q1 2024 showcased significant growth across various sectors. Abdulla Gharib Alqemzi, acting director-general of SCAD said: “The sustained growth in non-oil sectors enhances the emirate’s local and international leadership position, as Abu Dhabi’s competitive investment climate attracts foreign investments, particularly in major activities such as construction, which contributed 8.8 per cent to the overall economy (exceeding Dhs25bn in value).”

“This status reflects the emirate steadfastly advancement of its global position, focusing on increasing its GDP, non-oil exports, and the tourism sector’s contribution to the economy.”

The construction sector achieved a 9.5 per cent growth rate, contributing 8.8 per cent to the economy, exceeding Dhs25bn in value which is the highest in five years.

Meanwhile, the finance and insurance sector grew by 9.7 per cent, making up 7 per cent of the economy, with a 39 per cent increase in value over the past decade.

Additionally, telecommunications saw a growth rate of 5.9 per cent, while accommodation and food services increased by 6.2 per cent.

The transport and storage sector recorded a notable 14.4 per cent growth rate.

Other contributors to the growth included manufacturing which grew by 1.7 per cent, contributing 8.7 per cent to GDP, with the sector valued at Dhs24.8bn, marking a 102 per cent increase over the past decade.

Abu Dhabi’s continued economic success is largely due to strategic initiatives focused on diversification, industrial development, and attracting foreign investments, leading to a high non-oil GDP performance, which exceeded 9.1 per cent in 2023.

Read: Abu Dhabi’s luxury real estate boom: 9 projects to watch