The Statistics Centre – Abu Dhabi (SCAD) has reported that the GDP of Abu Dhabi experienced the most rapid growth rate in the MENA region. According to SCAD’s data, the GDP increased by 10.5% during the first nine months of 2022, compared to the same period in 2021. This growth has helped to enhance Abu Dhabi’s global position and sustain its competitiveness and macroeconomic stability.
The emirate has launched a number of initiatives in recent years as it focuses on diversifying its economy away from oil. Abu Dhabi has maintained a prudent fiscal and upgraded legal frameworks to encourage foreign direct investment and promote its domestic investments, according to Arabian Business. H.E. Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), said, “Abu Dhabi’s robust economy continues to prove its superiority driven by our leadership’s clear vision, its ability to attract foreign direct investments and agile policies that enabled our economy to achieve the strongest growth in the region.”
He added, “Abu Dhabi, with its world-renowned cosmopolitan lifestyle and unparalleled infrastructure, is the destination of choice for global investors and talent. The private sector plays a crucial role in supporting the economy’s continued growth, and we will continue to prioritise sustainable economic policies to broaden the investment landscape.”
Ahmed Mahmoud Fikri, Director-General of SCAD, said, “The emirate of Abu Dhabi has attained accelerating growth rates in the non-oil gross domestic product, culminating in a 10.3% increase by the close of the third quarter of 2022″.
“This growth is attributed to the strategic policies of prudent leadership, which have aimed at diversifying the economy, fostering private sector engagement, and investing in human capital. These efforts have established a robust economic environment resilient to challenges,” he added. “According to statistical estimates of the first nine months of 2022, all economic sectors demonstrated impressive growth with the exceptional performance of main economic sectors… This included remarkable increases that portend a bright future for indicating a thriving and robust economy.”
According to statistical estimates that the Statistics Centre – Abu Dhabi announced, the non-oil sectors contributed 50.3% to GDP, with an increase of AED 39B ($10.6B) compared to the same period in 2021 to reach AED 417.3B ($114B) in total by the end of Q3 2022.
Abu Dhabi’s real estate sector experienced an exponential 20.3% growth compared to the same period the previous year. The growth was due to the rise in real estate activities during the first nine months of 2022, as investors have been attracted to Abu Dhabi’s renowned waterfront and island communities, such as Saadiyat Island, Yas Island, Al Reem Island and Al Raha Gardens.
The accommodation and food services sector in Abu Dhabi achieved a growth rate of 20.2% in the first nine months of 2022. Abu Dhabi’s tourism sector has experienced a surge in hotel occupancy rates and other key indicators, reaching a two-year high. In 2022, the emirate welcomed a total of 4.1 million overnight hotel guests, marking a remarkable increase of 24% from the previous year. With hotel occupancy rates at 70%, significantly higher than the Middle East average of 63.6%, Abu Dhabi has emerged as one of the top tourism destinations in the region.
The impressive growth in tourism can be attributed to the increased awareness of Abu Dhabi’s offerings of entertainment and sporting events, cultural and heritage experiences, and international partnerships across both domestic and international markets.
The wholesale and retail trade sector has also seen a significant increase, reaching AED 45B in the first nine months of 2022, up 17.4% from the same period in 2021. This sector contributed 5.4% to the emirate’s nine-month GDP. Similarly, the transportation and storage sector has added value of AED 14B during the same period, with a growth rate of 11.4%. This sector, which covers the transportation of passengers and cargo via various means, along with storage activities, contributed 1.7% to the emirate’s GDP.
Abu Dhabi Airports has reported that a total of 15.9 million passengers used the emirate’s airports in 2022. During the first nine months of 2022, the manufacturing sector in Abu Dhabi grew at a rate of 8.1% and contributed 8.0% to the emirate’s GDP. With the newly announced Abu Dhabi Industrial Strategy, the manufacturing sector is expected to double in size by 2031, making Abu Dhabi the most competitive industrial center in the region. To achieve this goal, the government has announced an investment of AED 10B in various industrial programs.
The new industrial strategy is expected to enhance Abu Dhabi’s international trade, with the goal of increasing the emirate’s non-oil exports by 143% to AED 178.8B by 2031. The financial sector in Abu Dhabi also saw growth of 6.9% in the first nine months of 2022, amounting to a value of AED 28B and contributing 5.5% to the GDP. Abu Dhabi’s economic growth potential and the growing confidence of the international community have made the emirate a preferred destination for investors, businessmen, entrepreneurs, innovators, and other professionals from around the world.
