Abu Dhabi’s non-oil growth surges 7.7% in Q3 2023
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Abu Dhabi’s non-oil growth surges 7.7% in Q3 2023

Abu Dhabi’s non-oil growth surges 7.7% in Q3 2023

The financial and insurance sector grew by 14.4 per cent YoY and the value-added by the industry surged to Dhs18.7bn

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Abu Dhabi’s non-oil growth surges 7.7% in Q3 2023

Abu Dhabi’s non-oil economic growth surged to 7.7 per cent in the third quarter, data showed on Friday, contributing 52.8 per cent to the overall economy as the UAE capital accelerated efforts to diversify away from hydrocarbons.

The preliminary data from the Statistics Centre – Abu Dhabi (SCAD) shows that the emirate’s economy reached its highest quarterly value at Dhs290.5bn in Q3 2023, posing a growth of one per cent in real GDP compared to the same quarter a year earlier.

The data indicates a 2.8 per cent growth in real GDP over the first nine months of the year compared to the same period last year and a robust 8.6 per cent expansion in non-oil activities during the same timeframe.

“The consistent stellar growth of Abu Dhabi’s economy is solid proof of its resilience and the effectiveness of our approach to turn headwinds into tailwinds during this challenging time as the global economy is witnessing major shifts that impact different markets and industries around the world,” said Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development (ADDED).

“Backed by ongoing diversification strategic programmes, growing engagement of the private sector, and initiatives to attract more quality foreign direct investments and domestic direct investments, Abu Dhabi is cementing its status as a preferred destination for talents, investments, and businesses.

Abu Dhabi GDP growth by sector

Meanwhile, the SCAD said the value-added by the manufacturing activities in Q3 2023 reached Dhs26.3bn, contributing more than 17 per cent to the non-oil GDP and 9 per cent to the overall GDP.

The statistics authority said the growth underscores the continued success of diversification initiatives, including the Abu Dhabi Industrial Strategy, which is aimed at strengthening the city’s position as the region’s industrial hub.

The construction activity grew by 14.3 per cent during the third quarter of 2023 compared to the corresponding period a year ago. The value of the sector reached Dhs25bn, contributing more than 16.3 per cent to the non-oil GDP and 8.6 per cent to the total economy in Q3 2023.

Data from the SCAD highlights growth across most non-oil sectors, including the transport and storage sector, achieving a robust growth rate of 20 per cent in the three months to September 30, surpassing growth rates in previous quarters.

The statistics authority attributed the significant growth to the shipping container market and the increased volume of flights and passengers.

Similarly, the financial and insurance sector grew by 14.4 per cent YoY and the value-added by the industry surged to Dhs18.7bn in Q3 2023, contributing 6.4 per cent to Abu Dhabi’s GDP during the period under review.

Abu Dhabi’s robust economic growth had a notable impact on FDI, which witnessed a significant 9.7 per cent increase in total foreign investments throughout 2022 to surpass Dhs831bn.

The emirate has emerged as one of the fastest growing economies in 2022 and the first nine months of 2023, amid varying economic performances across the Middle East and North Africa region.

Read: UAE central bank raises GDP growth outlook to 5.7% in 2024

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