Abu Dhabi private sector sees robust growth, value hits Dhs338.9bn in 2023

Abu Dhabi’s private sector is key to the emirate’s economic diversification and success.

The sector’s contributions to the emirate’s economy were shared recently by the Abu Dhabi Department of Economic Development (ADDED) and Abu Dhabi Investment Office (ADIO) at the second Al Multaqa meeting.

Launched in Q4 2023, Al Multaqa meetings provide a platform for dialogues to support investment and development of new policies to enhance the emirate’s business ecosystem.

The quarterly sessions provide business heads with the latest developments on Abu Dhabi’s economic performance and highlight future opportunities.

Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development (ADDED), said: “Backed by decades-long experience, the private sector and family-owned businesses in Abu Dhabi continue to contribute to economic diversification as evidenced by their share in the highest growing non-oil sectors.”

Abu Dhabi economy: Positive growth in 2023

Based on the figures shared during the meeting, Abu Dhabi’s private sector has seen strong growth, reaching Dhs338.9bn in 2023 –  a 35 per cent increase compared to 2016.

Supported by the private sector and family-owned businesses, the emirate’s non-oil sectors recorded a growth of 9.1 per cent during 2023 to Dhs610bn, contributing 53.4 per cent of total real GDP.

Furthermore, Abdulla Gharib Alqemzi, acting director general of the Statistics Centre – Abu Dhabi, shared key figures during the meeting about the emirate’s economic highlights during the past 10 years. The emirate has seen a 28.5 per cent growth of non-oil GDP, from Dhs474.6bn in 2014 to Dhs610bn in 2023, and a 19 per cent rise of total real GDP, from Dhs960.1bn in 2014 to Dhs1.14tn in 2023.

Alqemzi also highlighted the major sectors contributing to economic diversification efforts. These included manufacturing, construction, finance, trade, transportation, real estate, and ICT.

Family-owned businesses support diversification

A key takeaway from the meeting is the pivotal role that family-owned businesses play in the emirate’s economic diversification.

Family-owned businesses represent a significant portion of several high-growth sectors:

• Construction (50 per cent): Witnessed a 13.1 per cent growth in 2023.
• Finance (60 per cent): Enjoyed a 25.5 per cent rise in 2023.
• Wholesale Trade (80 per cent): Achieved a 7.9 per cent growth in 2023.
• Transportation (70 per cent): Experienced a 17.1 per cent growth in 2023.

Opportunities on offer

During the meeting, the ADIO’s Musataha Programme shared several investment opportunities open to the private sector to develop government-owned land.

ADIO also announced investment opportunities in the field of sport in different areas in Abu Dhabi in addition to new sites that will be offered to develop feed-selling markets.