Abu Dhabi’s economy posted strong gains in the first quarter of 2025, with Gross Domestic Product (GDP) rising to AED291 billion ($79.2 billion), according to the Statistics Centre – Abu Dhabi (SCAD). This represents a 3.4 percent increase compared to Q1 2024, underscoring the emirate’s solid start to the year.
The non-oil economy played a key role, growing 6.1 percent year-on-year to AED163.6 billion ($44.5 billion). For the first time in a first-quarter period, non-oil sectors contributed 56.2 percent of total GDP, reflecting the government’s ongoing push for economic diversification.
Oil and Non-Oil Sector Breakdown
The oil sector made up the remaining 43.8 percent of GDP, contributing AED127.4 billion ($34.7 billion).
Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), noted, “Day after day, Abu Dhabi’s economy is reaffirming the success of the emirate’s long-term strategy. We are effectively addressing changes and challenges in both regional and global landscapes.”
He added, “Our Falcon Economy orchestrates multi-dimensional strategies across various sectors. These synergies allow us to pursue Abu Dhabi and the UAE’s broader strategic goals.”
Manufacturing, Construction, and Finance Drive Momentum
The manufacturing sector remained the largest non-oil contributor, adding AED28.5 billion ($7.8 billion)—a 5 percent rise from the same period last year. The sector now accounts for 9.8 percent of GDP. Notably, the number of new industrial licences increased by 4.7 percent, and factories transitioning to production jumped by 65 percent.
Construction saw the fastest growth, expanding by 10.2 percent to AED27.5 billion ($7.5 billion). This growth is driven by continued investments in housing, infrastructure, and digital permitting platforms like Binaa.
Meanwhile, the finance and insurance sector expanded 9.1 percent to AED19.6 billion ($5.3 billion), supported by a 43 percent increase in registered institutions at Abu Dhabi Global Market (ADGM). Assets under management at ADGM also surged by 33 percent.
Capital Markets, Trade, and Other High-Growth Sectors
Foreign investment into Abu Dhabi Securities Exchange (ADX) soared to AED8.5 billion ($2.3 billion), marking a 151 percent rise. ADX market capitalisation reached AED2.93 trillion ($797.8 billion), a 3.2 percent increase.
Additional sectoral highlights include:
- Wholesale and Retail Trade: AED16 billion ($4.4 billion), up 3.6 percent
- Real Estate: Grew by 6.7 percent
- Transport and Logistics: Rose 7.5 percent, reinforcing Abu Dhabi’s logistics hub status
- Healthcare: Expanded 5.2 percent, aligned with quality-of-life initiatives
- Professional and Technical Services: Contributed 10.3 percent, reflecting demand for knowledge jobs
- Arts and Entertainment: Jumped 8.4 percent, showcasing tourism and culture’s rising economic role
Population Growth and Digital Ambitions
Abu Dhabi’s population reached 4.14 million in 2024, up from 3.8 million in 2023. This population growth complements the economic expansion, increasing demand for housing, services, and employment.
The emirate’s AED13 billion ($3.5 billion) Digital Strategy (2025–2027) seeks to establish Abu Dhabi as the world’s first fully AI-native government by 2027. By automating public sector operations, the plan aims to enhance service delivery, improve efficiency, and promote innovation.
Vision for a Resilient Future
Abdulla Gharib Alqemzi, Director General of SCAD, said, “The first quarter of 2025 reaffirms the strength, adaptability, and maturity of Abu Dhabi’s economic model. Our shift toward a diversified, knowledge-based economy is gaining pace, with high-growth sectors like manufacturing, construction, and financial services leading the way.”
