Abu Dhabi economy grows 9.3% in 2022 on non-oil activities boost

Abu Dhabi’s economy accelerated by a record 9.3 per cent in 2022, a figure that positioned the city as the fastest-growing economy in the Middle East region.

Non-oil sectors witnessed significant growth of $11.7bn (Dhs43bn) in 2022, according to the latest data from the Statistics Centre – Abu Dhabi (SCAD), bringing the total GDP to Dhs554.6bn. Abu Dhabi’s non-oil sectors contributed an estimated 50 per cent to the overall GDP.

“In light of GDP 2022 estimates, all economic sectors displayed notable growth, particularly the major economic sectors. This exceptional performance indicates a promising and robust economy, laying a strong foundation for a prosperous future,” Abdulla Gharib Alqemzi, acting director general of the SCAD.

Real estate activities grew by 17.1 per cent in 2022 compared to the previous year, thanks to the increase in new projects and the growing interest from international businesses to invest in the city’s property sector.

.@ADStatistics has reported that Abu Dhabi is the fastest-growing economy in the MENA region, with real GDP estimated growth of 9.3 per cent in 2022 to reach AED1.1trn, 50 per cent of which came from non-oil sectors. pic.twitter.com/oLhQoW7k8h

— مكتب أبوظبي الإعلامي (@ADMediaOffice) May 8, 2023

SCAD said wholesale and retail trade activities surged by 11.6 per cent in 2022 to reach Dhs58.6bn and the sector contributed 5.3 per cent to the city’s overall GDP in 2022, reflecting thriving growth in local markets.

Similarly, transport and storage activities exceeded Dhs18.6bn, up 10.9 per cent from the previous year. “This sector comprises several activities including passenger and cargo transport by rail, land, air and sea means and related storage activities,” according to the statistics authority.

The manufacturing activities soared by 9.7 per cent to reach Dhs90.8bn in 2022 to contribute 8.2 per cent to the city’s GDP. The sector is expected to remain on the growth trajectory, benefiting from Abu Dhabi’s ambitious industrial strategy that seeks to drive economic growth and enhance the emirate’s trade with international markets.

Abu Dhabi’s construction activity jumped by 7.6 per cent in 2022 to reach Dhs86bn. The construction sector’s contributed 7.8 per cent to the city’s real GDP. Growth in the financial service sector surged by 7.4 per cent to reach Dhs62.4bn in 2022, contributing 5.6 per cent to the emirate’s GDP.

Abu Dhabi’s sustainable growth

Meanwhile, the growth across Abu Dhabi’s diverse economic sectors is attributed to the emirate’s robust economic framework, coupled with a collaborative approach from both the public and private sectors.

The growth in 2022 reflects the success of the city’s diversification strategy efforts which ranges from nurturing a business-supportive environment to a robust regulatory framework and unparalleled connectivity and infrastructure.

The Abu Dhabi Industrial Strategy (ADIS), which was launched in June 2022, has played a major role in diversifying the emirate’s economy.

ADIS aims to strengthen the city’s position as the region’s most competitive industrial hub by investing Dhs10bn across several programmes to more than double the size of the sector to Dhs172bn.

The strategy also seeks to create 13,600 jobs and increase Abu Dhabi’s non-oil exports by Dhs178.8bn by 2031. Increasing the city’s non-oil exports will facilitate access to financing, enhance ease of doing business, attract foreign investments as well as support collaboration with local and international partners.

Last year, the Abu Dhabi government said it will invest Dhs10bn across several ambitious industrial programmes to more than double the size of the emirate’s manufacturing sector to Dhs172bn by 2031. The new strategy will boost the emirate’s trade with international markets, to increase the emirate’s non-oil exports by 143 per cent to Dhs178.8bn by 2031.

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

The Abu Dhabi Chamber of Commerce and Industry unveiled a new three-year strategy in February to empower the private sector in the city and enhance its competitiveness.