Abu Dhabi, UAE — Abu Dhabi’s GDP recorded its highest quarterly value in the past nine years, registering a growth 3.9 percent in the first quarter of 2023 compared to the same period in 2022 on strong performance of non-oil sector, the emirate’s Statistics Centre – Abu Dhabi (SCAD) said Monday.
The statistics indicate a 6.1 percent growth in non-oil GDP during the first quarter of 2023, driven by strong performances in construction, wholesale and retail trade, transportation and storage, and financial and insurance services.
According to estimates, the non-oil GDP (at constant prices) reached AED 146 billion ($39.74 billion) in the first quarter of 2023 compared to AED 137.7 billion in the first quarter of 2022, as the total GDP reached AED 276.6 billion.
The contribution of non-oil activities to the total GDP reached its highest level in eight years to 52.8 percent.
Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), said, “Abu Dhabi is committed to strengthening its economic scene by achieving a strong, stable, smart and sustainable knowledge-economy.”
Construction sector
The construction sector recorded highest quarterly growth rates in nine years during the first quarter of 2023 and the fourth quarter of 2022 in a row at 14.4 percent and 14.5 percent respectively, compared to the corresponding periods in the previous year.
This impressive growth is attributed to the sector’s appeal to both local and foreign investments, as well as its ability to achieve high completion rates, with a notable increase of 37 percent in the number of newly completed buildings. As a result, the construction sector contributes 8.5 percent to the gross domestic product of the Emirate of Abu Dhabi during the first quarter of 2023.
Accommodation and Food Services
Statistical estimates reveal that accommodation and food services experienced a remarkable growth of 14.5 percent in the first quarter of 2023 compared to the same period last year. Furthermore, data from the Department of Culture and Tourism indicates that hotel occupancy rates exceeded 40 percent during this timeframe. These figures highlight the successful implementation of the visions and strategic plans established by the Emirate, aiming to attract over 24 million visitors in 2023.
Financial and Insurance Activities
Statistical estimates reveal a growth of 11.5 percent in the financial and insurance sector during the first quarter of 2023, compared to the same period last year. This growth reflects the strong performance of the banking sector, with some banks reporting net profits exceeding 50 percent during this quarter. Statistical data indicates that the financial and insurance sector contributes 6.3 percent to the GDP of the Emirate of Abu Dhabi in the first quarter of 2023, highlighting the significant confidence in the local economy.
Transport and Storage
Transport and storage activities have consistently maintained notable growth rates for over two years, recording a growth rate of 13.6 percent during the first quarter of 2023 compared to the same period last year. This growth is evident from the substantial increase in the value of this sector over the past two years, with the quarterly added value approaching 5 billion dirhams.
Wholesale and Retail Trade
According to the statistical results published by the Statistics Centre – Abu Dhabi, the wholesale and retail trade sector in Abu Dhabi has sustained expansion, with a notable growth of 13.9 percent during the first quarter of 2023 compared to the same period in 2022. The added value of this sector reached its highest quarterly level in the past nine years, contributing 6 percent to the gross domestic product.
In 2022, Abu Dhabi’s economy achieved the highest growth rates in the Middle East and North Africa region in 2022. During this period, the GDP recorded an impressive growth of 9.3 percent.