Abu Dhabi, UAE — Abu Dhabi’s non-oil economy expanded by 12.3 percent in the second quarter of 2023, while its total GDP grew by 3.5 percent, compared to the same period in 2022, estimates by the Statistics Centre Abu Dhabi (SCAD) said Monday.
Abu Dhabi’s non-oil economic activities have maintained remarkable growth in Q2 2023, leading the value of the emirate’s real non-oil GDP to AED154 billion, the highest since 2014 to break a record registered in the first quarter of the current year, where it surpassed AED146 billion.
According to preliminary estimates, the value of Abu Dhabi’s real GDP in the second quarter of 2023 reached its highest level at AED287 billion, driven by the growth of all non-oil activities, to continue the increase of its contribution to the GDP to 53.7 percent, which boosted the growth of the emirate’s non-oil GDP by 9.2 percent in the first half of 2023 compared to the same period last year.
Statistical estimates published by SCAD indicate an exceptional growth of 19.1 percent YoY in the construction sector, the highest quarterly value-added since 2014, at AED25.3 billion thanks to its projects’ ability to achieve high completion rates. The construction activity’s contribution to Abu Dhabi’s GDP amounted to 8.8 percent during Q2 2023.
Similarly, the quarterly growth of the manufacturing activity grew by 7 percent compared to the same period last year, with the sector also recording its highest quarterly value-added since 2014, achieving AED25 billion during the second quarter 2023.
The contribution of this activity to the total GDP reached 8.7 percent for the first time in a quarter, according to Q2 2023 estimates. The contribution of this activity to non-oil GDP reached 16.2 percent during the same period.
The wholesale and retail trade activities reached their highest quarterly value since 2014 at AED16.7 billion, contributing 5.8 percent of the total GDP in Q2 2023. During this period, these activities grew at a rate of 13.4 percent, as per the statistical estimates.
The value-added of both the information and communications activities and the public health activities hit record highs since 2014, totaling AED8 billion and AED4.6 billion, respectively. The quarterly growth rate of the two activities on an annual basis reached 14.5 percent and 9.8 percent, respectively, compared to the same period last year.
According to the statistical estimates, the financial sector exhibited extraordinary growth in Q2 2023, reaching its highest growth rate since 2014 at 29.7 percent. The sector’s value-added has also escalated to over AED18 billion for the same quarter, a five-year high.
Additionally, the transportation and storage economic activity and the accommodation and food services activity flourished, with growth rates reaching 16.9 percent and 13.6 percent, respectively, during the second quarter of 2023 compared to the same period last year.
Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi Department of Economic Development (ADDED), said, “The continued strong performance of Abu Dhabi’s economy despite mounting challenges in the global economic landscape reaffirms success of the emirate’s diversification strategy and adaptability to markets’ shifts.
“Our comprehensive strategies, prudent policies, countercyclical measures, and business-friendly ecosystem further enhance Abu Dhabi’s position as a rising economic powerhouse and preferred destination for talents, businesses and investments. We remain committed to delivering our ‘Falcon Economy’ objectives to reach new heights of sustainable development.”