According to the recent report by the Statistics Centre – Abu Dhabi (SCAD), Abu Dhabi GDP- gross domestic product experienced a notable growth of 3.9 percent in the first quarter of 2023 compared to the same period in 2022.
The statistics highlight a significant 6.1 percent expansion in non-oil GDP during Q1 2023, fueled by exceptional performances in sectors such as construction, wholesale and retail trade, transportation and storage, as well as financial and insurance services. This growth demonstrates the successful integration of various economic sectors, which is a result of consistent and dedicated efforts to maintain economic diversification in the emirate.
Based on estimates, the non-oil GDP (at constant prices) reached a record quarterly value of AED 146B in Q1 2023, surpassing the figure of AED 137.7B in Q1 2022. The total GDP amounted to Dhs276.6 billion during this period. This robust growth has led to non-oil activities contributing the highest proportion to the total GDP in the past eight years, reaching 52.8 percent.
Chairman of the Abu Dhabi Department of Economic Development, Ahmed Jasim Al Zaabi, expressed Abu Dhabi’s commitment to strengthening its economic scene by achieving a strong, stable, smart, and sustainable knowledge economy. The non-oil activities have been experiencing strong growth rates of non-oil sectors and share of its contribution to the total GDP to 52.8 per cent, despite mounting challenges in the global landscape.”
“Building upon the latest statistical data, Abu Dhabi is further opening its economy to the world, strengthening the emirate’s appeal as an ideal market for foreign investors, businesses, start-ups, and entrepreneurs from around the world.”
Abdulla Gharib Alqemzi, acting director general of SCAD, stated, “The quarterly estimates of Abu Dhabi GDP statistics reveal the continued growth of the economy of Abu Dhabi at remarkable rates. This growth presents increased opportunities for attracting investments and capital while reflecting the success of the ambitious vision embraced by the wise leadership in enhancing the emirate’s global prominence.”
The construction sector in Abu Dhabi has experienced exceptional growth, achieving the highest quarterly growth rates in nine years during the first quarter of 2023 and the fourth quarter of 2022. The growth rates were 14.4 percent and 14.5 percent respectively, compared to the same periods in the previous year. Both local and foreign investments find the sector attractive, contributing to this growth. The sector’s efficient project completion capabilities have resulted in a 37 percent increase in the number of newly completed buildings. As a result, the construction sector contributed 8.5 percent to Abu Dhabi GDP in the first quarter of 2023.
Accommodation and Food Services: The accommodation and food services sector experienced significant growth of 14.5 percent in the first quarter of 2023 compared to the same period last year. Data from the Department of Culture and Tourism revealed that hotel occupancy rates exceeded 40 percent during this period, indicating the successful implementation of Abu Dhabi’s strategies to attract over 24 million visitors in 2023.
Financial and Insurance: The financial and insurance sector in Abu Dhabi witnessed remarkable growth of 11.5 percent in the first quarter of 2023 compared to the same period last year. The strong performance of the banking sector primarily drives the growth, with some banks reporting net profits exceeding 50 percent during the quarter. The financial and insurance sector contributed 6.3 percent to Abu Dhabi’s GDP in the first quarter of 2023, reflecting the high confidence in the local economy.
Transport and Storage: The transport and storage sector has maintained consistent growth for over two years, recording a growth rate of 13.6 percent in the first quarter of 2023 compared to the same period last year. This growth is evident from the significant increase in the sector’s value, with the quarterly added value approaching AED 5B. The active movement of passengers and goods through various transportation modes and associated storage activities attributes to the growth.
Wholesale and Retail Trade: The wholesale and retail trade sector in Abu Dhabi has sustained expansion, with a notable growth of 13.9 percent in the first quarter of 2023 compared to the same period in 2022. The added value of the sector reached its highest quarterly level in the past nine years, contributing 6 percent to the gross domestic product. This growth highlights the remarkable progress witnessed by the local markets in Abu Dhabi.
Overall Economic Growth: Abu Dhabi’s economy achieved the highest growth rates in the Middle East and North Africa region in 2022, with an impressive growth rate of 9.3 percent. This consistent growth reaffirms Abu Dhabi’s leading position due to its competitiveness and favorable investment climate, which continue to attract businesses and investors.
