Economic Growth Driven by Diversification
Abu Dhabi’s economy reached a record AED301.8 billion ($82.2 billion) in gross domestic product (GDP) for Q3 2024, marking a 4.5% year-on-year growth, according to the Statistics Centre – Abu Dhabi (SCAD). This achievement highlights the emirate’s resilience and economic momentum despite global challenges.
The non-oil sector played a pivotal role, growing by 6.6% and contributing 54% to Abu Dhabi’s GDP. These figures underscore the Emirate’s commitment to diversification and surpassing global expectations.
For the first three quarters of 2024, Abu Dhabi’s GDP grew by 3.9%, while the non-oil economy saw a 5.9% increase, reflecting sustained economic robustness.
Key Sectors Propel Growth
The transport and storage sector recorded remarkable growth, expanding by 18% to AED7.1 billion ($1.9 billion). Significant investments in logistics, cargo handling, and port revenues drove this sector’s strong performance.
The financial and insurance sector also thrived, achieving an 11.6% growth rate and contributing AED19.5 billion ($5.3 billion) to the GDP. This growth was driven by increases in loans and deposits, reinforcing Abu Dhabi’s position as a leading financial hub.
The construction sector grew by 10%, adding AED26.7 billion ($7.3 billion) to the economy, with urban infrastructure projects boosting job creation. Meanwhile, the manufacturing sector remained the largest non-oil contributor, accounting for AED29.4 billion ($8 billion), growing 2% year-on-year for the seventh consecutive quarter.
The real estate sector saw a 6.1% growth, contributing AED10.7 billion ($2.9 billion), reflecting continued demand for high-quality developments.
Leadership and Investments Fuel Progress
Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), highlighted the Emirate’s strategic focus:
“The steady performance of Abu Dhabi’s economy over the past years reaffirms the effectiveness and efficiency of our multi-dimensional diversification strategy, proactive policies, progressive regulatory frameworks, and countercyclical measures to address mega shifts in the global economy and market fluctuations.
“With our focus on strengthening public-private partnerships to develop high-growth sectors, significant government capital investments continue to supercharge Abu Dhabi’s development across key sectors.”
Abdulla Gharib Alqemzi, Director General of SCAD, praised the Emirate’s proactive approach:
“Abu Dhabi’s economic performance reflects the emirate’s focus on diversification and its ability to attract sustained investments. Foreign investment, which reached AED904.5 billion ($246 billion) in 2023, underscores Abu Dhabi’s proactive approach to fostering a dynamic business ecosystem.”
Strategic Projects Drive Sustainable Development
In 2024, the Abu Dhabi government approved 144 projects with a budget of AED66 billion ($18 billion), focusing on vital sectors such as housing, education, tourism, and natural resources. Investments in transport infrastructure exceeded AED3 billion ($817 million), including major agreements by Etihad Rail for enhanced connectivity.
The electricity, gas, and water supply sector also grew by 5%, adding AED5.5 billion ($1.5 billion) to the economy, reflecting Abu Dhabi’s dedication to sustainability and resource efficiency.
