Arab News, Wednesday, Jul 17, 2024 | Muharram 11, 1445

Abu Dhabi’s GDP grows by 3.3% in Q1, driven by non-oil sectors

United Arab Emirates:

Abu Dhabi’s gross domestic product increased by 3.3 percent annually during the first quarter of 2024, driven by the growth of non-oil economic activities.

According to the Statistics Centre of Abu Dhabi, this rise is primarily attributed to the performance of non-oil economic activities; non-oil GDP increased significantly by 4.7 percent during the first three months of this year.

This trend of strong performance in non-oil sectors extends beyond Abu Dhabi, with Saudi Arabia’s real GDP expected to grow by 2.5 percent in 2024, driven by a robust 4.8 percent increase in non-oil private activities.

Similarly, economic growth in the Gulf Cooperation Council region is projected to rebound to 2.8 percent in 2024 and 4.7 percent in 2025, according to the World Bank’s Spring 2024 Gulf Economic Update.

The SCAD’s report noted that transportation, construction, financial activities, and accommodation, as well as food sectors, led the positive trend, reflecting the success of the government’s economic diversification policies.

The center’s estimates revealed that non-oil activities contributed 54.1 percent to Abu Dhabi’s overall economy in that period, the highest level since 2015.

The quarterly value of the non-oil economy reached 154.7 billion dirhams ($42.1 billion), while the total value of Abu Dhabi’s economy, including oil and non-oil sectors, was 286 billion dirhams.

Chairman of the Abu Dhabi Department of Economic Development, Ahmed Jasim Al-Zaabi, stated: “Our economy continues to deliver consistent, stellar growth, reaffirming its resilience and dynamism to navigate headwinds and global challenges impacting all economies and sectors.”

He added: “Guided by the leadership’s far-sighted vision and backed by strong fundamentals, Abu Dhabi’s soaring Falcon Economy has taken great strides to accelerate growth and transition to a smart, diversified, inclusive and sustainable economy.”

Al-Zaabi noted that with this growth, they are forging ahead with their strategies to cement Abu Dhabi’s position as a global magnet for outstanding talents, businesses, and investments.

He also highlighted that their attributes as the Capital of Capital are attracting global financial powerhouses to Abu Dhabi, supporting monetary activities to grow by 9.7 percent, and supercharging non-oil sectors, which have contributed 54.1 percent to total GDP in the first quarter of 2024.

Abdulla Gharib Al-Qemzi, acting director general of SCAD, emphasized the sustained growth in non-oil sectors, which enhances Abu Dhabi’s local and international leadership position.

The emirate’s competitive climate attracts foreign investments, especially in construction, which contributed 8.8 percent to the overall economy, exceeding 25 billion dirhams in value.

This growth reflects Abu Dhabi’s commitment to advancing its global position, focusing on increasing GDP, non-oil exports, and tourism’s economic contribution.

Construction activities grew by 9.5 percent in the first three months compared to the same period in 2023, contributing 8.8 percent to the overall economy—the highest in the past five years.

This sector’s attractiveness for local and foreign investments is evident in its consistent quarterly growth of 22.6 percent over the past decade, coinciding with an increase in the number of real estate units in the emirate, totaling 754,555 units since 2011.

The finance and insurance sector grew 9.7 percent in this quarter compared to the corresponding period last year, contributing 7 percent to the emirate’s economy. The value added by this sector increased by 39 percent over the past decade, reaching 20 billion dirhams in the first three months of 2024.

Telecommunications, accommodation, and food activities grew by 5.9 percent and 6.2 percent, respectively, highlighting efforts to enhance the tourism sector’s GDP contribution. Transport and storage activities saw a 14.4 percent year-on-year growth.

Manufacturing activities grew by 1.7 percent, contributing 8.7 percent to the emirate’s GDP. The quarterly value of this sector exceeded 24.8 billion dirhams, marking a 102 percent increase over the past decade.

Abu Dhabi’s continuous growth rates result from strategic initiatives focused on economic diversification, industrial sector development, and encouraging foreign investments, reflected in the high performance of the non-oil GDP, which exceeded 9.1 percent in 2023.