Abu Dhabi economy shows 10.5% growth in first nine months of 2022: SCAD

Abu Dhabi showed strong growth at the end of Q3 2022 across various sectors. The emirate also strengthened its international standing, while maintaining its competitiveness and macroeconomic stability.

The Statistics Centre – Abu Dhabi (SCAD) shared figures that indicate that in the first nine months of 2022, the growth of Abu Dhabi’s gross domestic product (GDP) reached 10.5 per cent, making it the highest in the Middle East and North Africa region, compared to the same period of 2021.

Abu Dhabi has introduced many initiatives in recent years as it focuses on diversifying its economy away from oil, promoting its non-oil economic activities, maintaining a prudent fiscal policy and speedily responding to the market needs and trends.

It has also enhanced regulatory and legal frameworks to encourage foreign direct investment and promote domestic investments.

Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development (ADDED), said, “Abu Dhabi’s robust economy continues to prove its superiority driven by our leadership’s clear vision, its ability to attract foreign direct investments and agile policies that enabled our economy to achieve the strongest growth in the region.”

Ahmed Mahmoud Fikri, director-general of SCAD, said, “This growth is attributed to the strategic policies of prudent leadership, which have aimed at diversifying the economy, fostering private sector engagement, and investing in human capital. These efforts have established a robust economic environment resilient to challenges.”

He added, “According to statistical estimates of the first nine months of 2022, all economic sectors demonstrated impressive growth with the exceptional performance of main economic sectors. This included remarkable increases that portend a bright future for indicating a thriving and robust economy.”

Abu Dhabi real estate, hospitality, F&B sectors

According to statistical estimates that SCAD announced, the non-oil sectors contributed 50.3 per cent to GDP, with an increase of Dhs39bn compared to the same period in 2021 to reach Dhs417.3bn in total by the end of Q3 2022.

Abu Dhabi’s real estate sector experienced an exponential 20.3 per cent growth compared to the same period the previous year.

The growth was due to the rise in real estate activities during the first nine months of 2022, as investors have been attracted to Abu Dhabi’s renowned waterfront and island communities, such as Saadiyat Island, Yas Island, Al Reem Island and Al Raha Gardens.

The accommodation and food services sector in Abu Dhabi achieved a growth rate of 20.2 per cent in the first nine months of 2022.

The tourism sector and hotel occupancy rates, among other key indicators, reached a two-year high.

Read: Abu Dhabi hotels generate Dhs5.4bn in revenue in 2022

In 2022, Abu Dhabi hosted a total of 4.1 million overnight hotel guests, an increase of 24 per cent from the previous year.

Hotel occupancy rates reached 70 per cent, well above the Middle East average of 63.6 per cent which makes Abu Dhabi among the top tourism destinations in the region in 2022.

The robust growth is linked to Abu Dhabi’s offering of entertainment and sporting events, cultural and heritage experiences, and leading international partnerships.

Retail and transportation sectors

During the first nine months of 2022, the wholesale and retail trade sector reached Dhs45bn, with a 17.4 per cent increase compared to the same period in 2021. This sector accounted for 5.4 per cent of Abu Dhabi’s nine-month GDP.

The transportation and storage sector saw an added value of Dhs14bn in the first nine months of 2022, recording a growth of 11.4 per cent. This sector, which boosted the emirate’s GDP by 1.7 per cent, covers the transportation of passengers and cargo via rail, road, water, or air, and related storage activities.

Abu Dhabi Airports reported that the emirate’s airports were used by a combined total of 15.9 million passengers in 2022.

The manufacturing activities in the emirate witnessed a growth rate of 8.1 per cent, with a contribution of 8.0 per cent to the GDP during the first nine months of 2022.

The manufacturing sector is expected to double in size by 2031 with the newly announced Abu Dhabi Industrial Strategy to strengthen the emirate’s position as the region’s most competitive industrial centre.

Programmes focused on growth

Abu Dhabi government recently announced that it will invest Dhs10bn across a number of ambitious industrial programmes to more than double the size of the emirate’s manufacturing sector to Dhs172bn by 2031.

Read: Abu Dhabi Industrial Strategy launched, Dhs10bn earmarked for six programmes

The new strategy will boost Abu Dhabi’s trade with international markets, with the aim of increasing the emirate’s non-oil exports by 143 per cent to Dhs178.8bn by 2031.

Abu Dhabi’s financial sector grew by 6.9 per cent in the first nine months of 2022 compared to the same period in 2021, with a value of Dhs28bn.

The sector accounted for 5.5 per cent of the GDP.