Back to all abu-dhabi news

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

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

Gulf Business
Gulf Business

02 January, 2025

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

TT

16

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.

Global population reaches 8.156 billion in 2024

A further rise to 10 billion is projected in the second half of the century, despite declining growth rates

Gulf Business
Gulf Business

01 January, 2025

Global population reaches 8.156 billion in 2024
Image: Getty Images/ For illustrative purposes

TT

16

The global population reached approximately 8.156 billion in 2024, an increase of about 82 million people from the previous year’s 8.083 billion, according to estimates by the German Foundation for World Population.

The milestone highlights the world’s continued population growth, though at a slower pace than in previous decades.

The United Nations previously reported the global population surpassed the eight billion mark in November 2022 and forecasts it will exceed nine billion by 2037.

A further rise to 10 billion is projected in the second half of the century, despite declining growth rates.

Global population shows deceleration

According to the foundation, the global fertility rate, currently averaging 2.2 children per woman, has played a key role in the deceleration.

Population growth is particularly pronounced in Africa, where the population is projected to double within the next two decades. The continent’s rapid expansion underscores both opportunities and challenges, including strains on infrastructure, education, and healthcare systems.

Globally, the deceleration of growth reflects demographic shifts such as ageing populations in regions such as Europe and East Asia, which are experiencing lower birth rates and longer life expectancies.

Experts emphasise that understanding these trends is crucial for addressing global challenges such as resource allocation, urbanisation, and sustainability.

UAE to expand CEPAs in 2025

Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, highlighted that the UAE’s CEPAs programme is designed to expand the country’s commercial and investment partnerships worldwide

Gulf Business
Gulf Business

01 January, 2025

UAE to expand CEPAs in 2025
Image: Getty Images/ For illustrative purposes

TT

16

The UAE will continue to increase its comprehensive economic partnership agreements (CEPAs) in 2025, targeting additional countries to further maximize benefits for the country and its global trade partners, shared Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade.

Speaking to state news agency WAM, Minister Al Zeyoudi explained that the agreements would strengthen rules-based international trade, drive sustainable development, boost investments, and enhance opportunities for trade in goods, services and re-exporting.

In the interview, Dr Al Zeyoudi highlighted that the UAE’s CEPAs programme is designed to expand the country’s commercial and investment partnerships worldwide. The initiative positions the UAE as a key gateway for non-oil goods and services and as a global hub for business and investment.

Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade

“These agreements reflect the UAE’s vision, which recognises the vital role of free trade based on clear rules in driving sustainable economic growth and inclusive development,” Dr Al Zeyoudi said. “The agreements’ diversity and the UAE’s ability to form valuable partnerships across five continents significantly increase opportunities for various sectors and open new markets.”

UAE’s CEPAs have positively impacted trade

The UAE’s CEPAs have already shown positive effects on a wide range of foreign trade areas, particularly non-oil trade, re-export services, logistics, clean and renewable energy, technology, financial services, green industries, advanced materials, agriculture, and sustainable food systems, the minister added.

Dr Al Zeyoudi further emphasised that the CEPAs continue to have a tangible and direct impact on the country’s foreign trade, particularly in sectors such as advanced technology, helping boost the UAE’s standing as a leader in global commerce.

Since its launch in September 2021, the UAE has concluded 24 CEPAs with countries and international blocs, covering approximately 2.5 billion people— about a quarter of the global population — by early December 2024.

The UAE’s foreign trade reached a historic milestone in H1 2024, surpassing Dhs1.395tn. This reflected an 11.2 per cent growth compared to the same period in 2023, with growth rates reaching 28.8 per cent, 54.7 per cent, and 66 per cent, compared to the same periods in 2022, 2021, and 2019, respectively.

The UAE’s continued expansion of CEPAs is expected to further cement the country’s role as a key player in global trade and investment.

More news in abu-dhabi