ABU DHABI, UAE – The Statistics Center – Abu Dhabi (SCAD) has reported a substantial 7.7 percent growth in the real non-oil Gross Domestic Product (GDP) the Emirate during the third quarter of 2023, in comparison to the same period in 2022.
This growth is attributed to the success of Abu Dhabi’s comprehensive strategies aimed at fortifying its standing as a prominent economic powerhouse.
Preliminary estimates released by SCAD reveal that most of non-oil activities have sustained growth rates, contributing 52.8 percent to the overall economy.
Despite fluctuations in the oil and gas global markets, the Abu Dhabi’s economy continues to exhibit promising prospects.
Marking a significant milestone, the emirate’s economy reached its highest quarterly value at US$79 billion (AED290.5 billion), posing a positive growth of one percent in real gross domestic product during Q3- 2023 compared to the same quarter the previous year, despite the decline in oil prices.
The statistical results indicate a 2.8 percent growth in real GDP over the first nine months of 2023 compared to the same period last year, and a robust 8.6 percent expansion in non-oil activities during the same timeframe.
Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), said, “The consistent stellar growth of Abu Dhabi’s economy is a solid proof of its resilience and the effectiveness of our approach to turn headwinds into tailwinds during this challenging time as the global economy is witnessing major shifts that impact different markets and industries around the world.”
He said, “These results, with a 2.8 percent growth in real total GDP and an impressive 8.6 percent rise of non-oil GDP during the first nine months of 2023, reaffirm our strong foundation and robust frameworks, paving the way to the Falcon Economy to soar further and farther.”
He added, “Backed by ongoing diversification strategic programs, growing engagement of the private sector and initiatives to attract more quality FDIs and DDIs, Abu Dhabi is cementing its status as preferred destination for talents, investments and businesses.”
Al Zaabi said, “We remain committed to continuously and proactively enhance our vibrant, globally competitive and entrepreneurial ecosystem to generate lasting opportunities for all, enabling them to reach their full potential, while placing human development and sustainability at the heart of our socio-economic strategies.”
Abdulla Gharib Alqemzi, Acting Director General of SCAD said the organization, “Is committed to enhancing the quality and accessibility of reliable analyses crucial for both local and international investors in their decision-making processes.”
He said, “The third-quarter statistical indicators reflect the economic resilience of the Emirate of Abu Dhabi and showcase a consistent growth since the second quarter of 2021.”
He added, “The statistical figures affirm the emirate’s proactive efforts to diversify the economy and promote the growth of non-oil sectors.”
Manufacturing activities, which is a leading non-oil activity, reached a value of US$7.1 billion (AED26.3 billion), contributing over 17 percent to the non-oil GDP and 9 percent to the overall GDP in the third quarter of 2023.
This underscores the continued success of diversification initiatives, including the Abu Dhabi Industrial Strategy (ADIS) aiming to strengthen the Emirate’s position as the region’s most competitive industrial hub, and the rapid growth of non-oil activities.
Construction activity maintains a positive momentum, achieving a growth rate of 14.3 percent during the third quarter of 2023 compared to the same period in 2022.
The value of construction activity reached US$6.8 billion (AED25 billion), contributing more than 16.3 percent to the non-oil GDP and 8.6 percent to the total economy during the third quarter of 2023.
Statistical estimates released by SCAD highlight growth across most non-oil sectors, including the transport and storage sector, achieving a remarkable growth rate of 20 percent in the third quarter of 2023 y/y, surpassing growth rates in previous quarters.
This surge can be attributed to the substantial expansion of the shipping container market and the increased volume of flights and passengers.
In the same context, financial and insurance activities experienced a growth of 14.4 percent during the third quarter of 2023 compared to the same period last year.
This growth elevated the value of the sector to US$5 billion (AED18.7 billion), contributing 6.4 percent to the emirate’s gross domestic product during this period.
The robust economic growth experienced by the Emirate of Abu Dhabi had a notable impact on foreign investment which witnessed a significant 9.7 percent increase in total foreign investments throughout 2022, surpassing an impressive value of US$226 billion (AED831 billion).
Amidst varying economic performances across the Middle East and North Africa region during this period, Abu Dhabi emerged as one of fastest growing economies in 2022 and first nine month of 2023.