Abu Dhabi GDP grows 4.5% in Q3 ’24, led by non-oil sector

Abu Dhabi’s economy expanded by 4.5 per cent in Q3 2024 compared to the same period last year, reaching a record high of Dhs301.8bn, according to the latest report from the Statistics Centre – Abu Dhabi (SCAD).

The growth was propelled by a strong performance in the non-oil economy, which grew by 6.6 per cent year-on-year.

Despite global economic challenges, Abu Dhabi has demonstrated resilience, outpacing many global forecasts.

Preliminary data from SCAD shows that non-oil activities accounted for 54 per cent of the total GDP in Q3 2024, underscoring the emirate’s success in diversifying its economy.

For the first three quarters of 2024, Abu Dhabi’s GDP grew by 3.9 per cent, with non-oil activities contributing a 5.9 per cent increase. The strong performance of key sectors reflects sustained momentum in the emirate’s economic recovery and growth strategy.

Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development (ADDED), credited the consistent economic performance to the effectiveness of Abu Dhabi’s multi-dimensional diversification strategy, progressive regulatory frameworks, and strategic policies that have made the emirate a rising economic powerhouse.

“Abu Dhabi’s soaring Falcon Economy has positioned us as a global magnet for talent, businesses, and investments. Our strong focus on public-private partnerships, alongside significant government investments, is driving growth across high-priority sectors,” Al Zaabi said.

Abu Dhabi approved 144 new projects in 2024

In 2024, the Abu Dhabi government approved 144 new projects with a total budget of Dhs66bn, focusing on housing, education, tourism, and natural resources.

Additionally, Dhs3bn was allocated to transport infrastructure initiatives, including traffic improvement projects and international agreements secured by Etihad Rail to boost connectivity.

Abdulla Gharib Alqemzi, director general of SCAD, highlighted the continued success in attracting foreign investment, which reached Dhs904.5bn in 2023. He emphasised the critical role of Abu Dhabi’s world-class infrastructure and visionary leadership in fostering a dynamic business environment.

Abu Dhabi’s transport and storage sector led growth in Q3 2024 with an 18 per cent increase, contributing Dhs7.1bn to the economy. This was attributed to a rise in general cargo volumes, container handling, and oil logistics, alongside higher port revenues.

The financial and insurance sector also saw substantial expansion, growing by 11.6 per cent and contributing Dhs19.5bn to the GDP. This growth reflects an increase in loans and deposits, positioning Abu Dhabi as a key financial hub.

The construction sector followed closely, with a 10 per cent increase in value-added output, reaching Dhs26.7bn, driven by investments in urban infrastructure.

Meanwhile, the real estate sector grew by 6.1 per cent, adding Dhs10.7bn to the economy as demand for high-quality real estate continued to rise.

Manufacturing sector largest contributor to the emirate’s GDP

Abu Dhabi’s manufacturing sector remained the largest contributor to its non-oil economy, with a 2 per cent growth, generating Dhs29.4bn in Q3 2024.

Manufacturing contributed 9.7 per cent to the GDP, maintaining its role as the key pillar of the emirate’s industrial diversification strategy.

The electricity, gas, and water supply sector added Dhs5.5bn, reflecting a 5 per cent increase and contributing 1.8 per cent to the GDP.