In 2023, Abu Dhabi’s economic landscape underwent a significant transformation, with the non-oil gross domestic product (GDP) witnessing an impressive surge of 9.1%. This remarkable growth, as reported by the Statistics Centre-Abu Dhabi (SCAD), highlights the success of the emirate’s strategy for economic diversification.
Sectoral Growth Driving Economic Expansion
The robust performance of the non-oil economy played a pivotal role in Abu Dhabi’s overall GDP growth, contributing to a 3.1% increase compared to the previous year. Notably, the emirate achieved its highest GDP value in a decade, reaching Dh1.14 trillion, demonstrating resilience amidst global market fluctuations.
- Construction, finance and insurance, and transportation and storage sectors collectively contributed over 53% to the total GDP growth.
- In the fourth quarter of 2023, the economy expanded by 4.1%, fueled by a remarkable 10.4% growth in the non-oil sectors.
Key Sectors Driving Growth
The stellar performance was driven by advancements in various sectors. Construction activities surged by 13.1%, reaching a value exceeding Dh97 billion, the highest in a decade. Manufacturing activities contributed significantly, with an added value of Dh101 billion, accounting for 8.8% of the total GDP.
- The financial and insurance sector achieved an extraordinary growth rate of 25.5%, contributing Dh79 billion to the GDP.
- Wholesale and retail trade activities expanded by 7.9%, contributing over 5.5% to the GDP.
Emirate’s Commitment to Innovation and Growth
Abdulla Gharib Alqemzi, Acting Director General of SCAD, emphasized the crucial role of strategic diversification and innovation in driving Abu Dhabi’s economic success. The emirate’s dedication to nurturing talent, attracting investors, and fostering entrepreneurship has positioned it as a preferred investment destination on the global stage.
- Transportation and storage, health and education, information and communication, and real estate activities all registered significant gains, reflecting Abu Dhabi’s commitment to diversification.
- The growth in arts and recreation activities underscores Abu Dhabi’s emergence as a cultural hub and major tourist destination.
