Abu Dhabi’s non-oil GDP expands over 9% in 2023

The Statistics Centre – Abu Dhabi (SCAD) released preliminary data of the Gross Domestic Product (GDP) for the year 2023, revealing impressive growth figures, particularly in the non-oil sector.

Despite global market fluctuations and challenges, strategic policies focused on economic diversification, innovation, and entrepreneurship yielded positive results. The SCAD report notes that Abu Dhabi’s GDP in 2023 reached Dhs1.14tn, marking its best performance in ten years.

Here are the key highlights of the report:

GDP growth figures

The emirate’s non-oil economy recorded a growth of 9.1 per cent while the real GDP witnessed a growth of 3.1 per cent compared to 2022.

Non-oil sectors, including construction, finance and insurance, and transportation and storage, contributed over 53 per cent to the total GDP.

Q4 2023

Abu Dhabi’s economy achieved a growth of 4.1 per cent in Q4 2023 compared to the same period in 2022.

The trend of non-oil sectors experiencing robust growth continued with number exceeding 10.4 per cent during Q4 2023.

Abu Dhabi’s focus on diversification

The robust growth rates are attributed to strategic frameworks aimed at promoting economic diversification.

Development of industrial, finance, and tourism sectors, along with encouragement of foreign investment and private sector participation, played a significant role in creating new job opportunities.

Ahmed Jasim Al Zaabi, chairman of Abu Dhabi Department of Economic Development, emphasised Abu Dhabi’s proactive approach in addressing global economic dynamics.

Ahmed Jasim Al Zaabi, Chairman of @AbuDhabiDED, has praised the performance of the emirate’s non-oil economy following @ADStatistics’ estimates of non-oil GDP for 2023 recording growth of 9.1 per cent, and contributing 3.1 per cent of Abu Dhabi’s total GDP, compared to 2022. pic.twitter.com/19831Qz2TY

— مكتب أبوظبي الإعلامي (@ADMediaOffice) April 1, 2024

Abdulla Gharib Alqemzi, acting director-general of SCAD, highlighted the success of Abu Dhabi’s strategic efforts towards diversification and innovation.

He said, “The strong performance of the economy in 2023 demonstrates the success of Abu Dhabi’s strategic efforts pursued towards diversification and innovation, moving with confident steps to enhance this growth by giving priority to talents, investors, and entrepreneurs who recognise the emirate in the global economy as an attractive destination.

“The statistical results indicated an expansion in the non-oil economic activities, as the contribution of the non-oil activities to the GDP reached more than 53 per cent, thanks to the adoption of the incentive policies that enabled talents, entrepreneurs, and investors to make optimal use of business and investment opportunities in Abu Dhabi,” added Alqemzi.

Sector-wise growth

• Construction activities witnessed a growth of 13.1 per cent in 2023, reaching an added value of over Dhs97bn.
• Manufacturing activities contributed 8.8 per cent to the GDP, with an added value of Dhs101bn.
• Financial and insurance activities recorded the highest growth rate at 25.5 per cent, reflecting growing confidence in Abu Dhabi’s economy as well as initiatives to build a strong financial centre in the emirate.
• Wholesale and retail trade activities saw a growth of 7.9 per cent, contributing over 5.5 per cent to the GDP.
• Transportation and storage activity grew by 17.1 per cent.
• Health and education activities witnessed a growth of 5.5 per cent.
• Information and communication activities, real estate activities, arts and recreation activities, and accommodation and food services also experienced positive growth rates.

The strong performance of Abu Dhabi’s economy in 2023 reflects the work undertaken by the UAE government towards sustainable growth through economic activity diversification.

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