The Statistics Centre - Abu Dhabi (SCAD) has reported a substantial 7.7% growth in the real non-oil GDP of Abu Dhabi during the third quarter of 2023, in comparison to the same period in 2022. This growth is attributed to the success of Abu Dhabi’s comprehensive strategy aimed at fortifying its standing as a prominent economic powerhouse.
Preliminary estimates released by SCAD reveal that most of non-oil activities have sustained growth rates, contributing 52.8% to the overall economy. Despite fluctuations in the oil and gas global markets, the Abu Dhabi' economy continues to exhibit promising prospects.
Marking a significant milestone, the emirate's economy reached its highest quarterly value at AED 290.5 billion, posing a positive growth of one percent in real gross domestic product during Q3- 2023 compared to the same quarter the previous year, despite the decline in oil prices.
The statistical results indicate a 2.8% growth in real GDP over the first nine months of 2023 compared to the same period last year, and a robust 8.6% expansion in non-oil activities during the same timeframe.
His Excellency Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), said: “The consistent stellar growth of Abu Dhabi’s economy is a 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”.
“These results, with a 2.8% growth in real total GDP and an impressive 8.6% rise of non-oil GDP during the first 9 months of 2023, reaffirm our strong foundation and robust frameworks, paving the way to the “Falcon Economy’ to soar further and farther. Backed by ongoing diversification strategic programmes, growing engagement of the private sector, and initiatives to attract more quality FDIs and DDIs, Abu Dhabi is cementing its status as preferred destination for talents, investments, and businesses. We remain committed to continuously and proactively enhance our vibrant, globally competitive, and entrepreneurial ecosystem to generate lasting opportunities for all, enabling them to reach their full potential, while placing human development and sustainability at the heart of our socio-economic strategies.”
His Excellency Abdulla Gharib Alqemzi, Acting Director General of the Statistics Centre – Abu Dhabi said: “SCAD is committed to enhancing the quality and accessibility of reliable analyses crucial for both local and international investors in their decision-making processes. SCAD offers a range of statistical indicators that aid decision-makers and specialists in determining investment priorities and monitoring the performance of various sectors according to the international best practices for statistical production and analyses.
His Excellency added, “The third-quarter statistical indicators reflect the economic resilience of the Emirate of Abu Dhabi and showcase a consistent growth since the second quarter of 2021. This growth is attributed to the expanding non-oil activities, mitigating the impact of the global slowdown in oil-related activities. The statistical figures affirm the emirate's proactive efforts to diversify the economy and promote the growth of non-oil sectors.”
Manufacturing activities, which is a leading non-oil activity, reached a value of AED 26.3 billion, contributing over 17% to the non-oil GDP and 9% to the overall GDP in the third quarter of 2023. This underscores the continued success of diversification initiatives, including the Abu Dhabi Industrial Strategy (ADIS) aiming to strengthen the Emirate’s position as the region’s most competitive industrial hub, and the rapid growth of non-oil activities in the Emirate.
In a parallel development, construction activity maintains a positive momentum, achieving a growth rate of 14.3% during the third quarter of 2023 compared to the same period in 2022. The value of construction activity reached AED 25 billion, contributing more than 16.3% to the non-oil GDP and 8.6% to the total economy during the third quarter of 2023.
Statistical estimates released by the Statistics Centre - Abu Dhabi highlight growth across most non-oil sectors, including the transport and storage sector, achieving a remarkable growth rate of 20% in the third quarter of 2023 y/y, surpassing growth rates in previous quarters. This surge can be attributed to the substantial expansion of the shipping container market and the increased volume of flights and passengers.
In the same context, financial and insurance activities experienced a growth of 14.4% during the third quarter of 2023 compared to the same period last year. This growth elevated the value of the sector to AED 18.7 billion, contributing 6.4% to the emirate’s gross domestic product during this period.
The robust economic growth experienced by the Emirate of Abu Dhabi had a notable impact on foreign investment which witnessed a significant 9.7% increase in total foreign investments throughout 2022, surpassing an impressive value of AED 831 billion.
Amidst varying economic performances across the Middle East and North Africa region during this period, the Emirate of Abu Dhabi emerged as one of fastest growing economies in 2022 and first nine month of 2023. This outcome underscores the Emirate's distinguished position, affirming its competitiveness and its attractive investment climate while maintaining a resilience and proactive approach to fostering a thriving economic landscape.