At Dh1.14 trillion, the emirate’s GDP achieved its best performance in the year in terms of value in 10 years
Abu Dhabi’s non-oil gross domestic product (GDP) recorded a growth of 9.1 per cent last year, showcasing the positive results of its economic diversification strategy, the Statistics Centre-Abu Dhabi (SCAD) said.
According to SCAD’s preliminary statistical estimates of the GDP, a strong performance of the non-oil economy has contributed 3.1 per cent of Abu Dhabi’s total GDP in 2023 compared to 2022.
In 2023, the emirate’s GDP achieved its best performance in terms of value in 10 years at Dh1.14 trillion, despite challenges and global market fluctuations.
The growth in the non-oil economy has been led by “significant strides” in the construction, finance and insurance, and transportation and storage economic activities, contributing more than 53 per cent to the total GDP.
During the fourth quarter of 2023, Abu Dhabi’s economy grew 4.1 per cent compared to the same period in 2022, showing continued growth driven by the expansion of non-oil sectors, which achieved 10.4 per cent during the same period.
The growth rates have been achieved largely by promoting economic diversification through the development of the industrial, finance and tourism sectors, as well as the encouragement of foreign investment and the private sector to provide new job opportunities.
“The impressive performance of our Falcon Economy during the past few years proved the effectiveness of Abu Dhabi’s proactive approach to address the ever-changing dynamics of the global economy,” Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development, said.
Booming sectors
Growth in construction activities surged by 13.1 per cent in 2023 compared to 2022, with the added value of this sector reaching more than Dh97 billion, the highest in 10 years, while contributing 8.5 per cent to the emirate’s GDP during the same period.
Also, the added value of manufacturing activities in 2023 hit Dh101 billion, representing 8.8 per cent of the total GDP, marking the largest non-oil contributor to overall GDP during this period compared to 2022.
The financial and insurance activities achieved the highest growth rate at 25.5 per cent and their best performance in terms of value at Dh79 billion, with a contribution to the GDP exceeding 6.9 per cent, reflecting the growing confidence of the international community in the emirate’s economy, consolidating its position as a preferred destination for investors and business owners.
This positive performance had an impact on wholesale and retail trade activities, which achieved a growth of 7.9 per cent, with their added value reaching approximately Dh63 billion during 2023 compared to 2022, with a contribution rate exceeding 5.5 per cent to the emirate’s GDP.
Abdulla Gharib Alqemzi, Acting Director General of the SCAD, said: “The strong performance of Abu Dhabi’s economy in 2023 demonstrates the success of Abu Dhabi’s strategic efforts pursued towards diversification and innovation, moving with confident steps to enhance this growth by giving priority to talents, investors, and entrepreneurs who recognise the emirate in the global economy as an attractive destination.”
During 2023 compared to 2022, transportation and storage activity recorded a growth of 17.1 per cent, health and education activities achieved a growth of 5.5 per cent, while information and communication activities and real estate activities posted a growth of 5.8 per cent.
“We are delivering the ambitious objectives of our multi-polar socio-economic strategy to transform and accelerate the growth by leveraging advanced technologies, innovation, and entrepreneurial ecosystem to enable all to reach their full potential in Abu Dhabi, the capital of capital, and expand globally,” Al Zaabi noted.
The growth rate of arts and recreation activities reached 7.8 per cent in 2023, while accommodation and food services recorded a growth of 3.1 per cent during the same period compared to 2022, reflecting Abu Dhabi’s success in attracting visitors and displaying its features as a global business centre and a major destination for events such as exhibitions and conferences.
Source: khaleejtimes