Abu Dhabi recorded a remarkable 7.7 percent growth in real non-oil GDP during the third quarter (Q3) of 2023. The emirate’s economic trajectory stands as a testament to strategic planning, governance and a commitment to sustainable growth. As the global economy undergoes significant changes, Abu Dhabi’s resilient performance is a fine example of its proactive strategies and commitment to becoming a thriving economic hub.
Record Q3 2023 economic performance
Abu Dhabi’s non-oil GDP saw substantial growth, reaching 7.7 percent during Q3 2023. According to preliminary estimates from SCAD, the surge is part of a comprehensive strategy reinforcing the emirate’s status as an economic powerhouse. Non-oil activities contributed 52.8 percent to the overall economy. This sustained growth showcased the emirate’s resilience in the face of global market fluctuations.
The emirate achieved its highest quarterly economic value at AED290.5 billion, reflecting a positive 1 percent growth in real GDP during Q3 2023 despite challenges posed by declining oil prices.
Diversification initiatives and sectoral growth
Abu Dhabi’s success is attributed to diversification initiatives and growth across key sectors:
Manufacturing
Manufacturing activities contributed over 17 percent to non-oil GDP and 9 percent to overall GDP. It has reached a value of AED26.3 billion in Q3 2023. This underscores the success of diversification initiatives, including the Abu Dhabi Industrial Strategy (ADIS).
Construction
Construction maintained positive momentum. The sector experienced a growth rate of 14.3 percent in Q3 2023, reaching a value of AED25 billion. It also contributed over 16.3 percent to non-oil GDP and 8.6 percent to the total economy.
Read: Abu Dhabi property market continues strong growth
Transport and storage
The transport and storage sector achieved a remarkable growth rate of 20 percent in Q3 2023. This surge is attributed to the substantial expansion of the shipping container market and increased flights and passenger volume.
Financial and insurance activities
Financial and insurance activities grew by 14.4 percent in Q3 2023, reaching a value of AED18.7 billion and contributing 6.4 percent to the emirate’s GDP during this period.
Foreign investment and global recognition
Abu Dhabi’s robust economic growth positively impacted foreign investment, witnessing a significant 9.7 percent increase in total foreign investments throughout 2022, surpassing an impressive value of AED831 billion. With that said, the emirate’s distinguished position and competitive investment climate make it one of the fastest-growing economies in the Middle East and North Africa region.
Growth in business activity
In 2023, 25,647 new economic licenses were issued, with 75,778 licenses renewed, showcasing a growth of 3.5 percent. Active licenses increased to 143,617, reflecting strong growth and confidence in Abu Dhabi’s business sector.
Furthermore, it also highlights remarkable growth in various sectors, including professional, tourism, industrial, agricultural, fishery, and livestock. The effectiveness of ADDED’s initiatives is evident in increased ‘Real Beneficiary’ requests, witnessing a remarkable growth of 201.9 percent.
Final thoughts
Abu Dhabi’s economic trajectory in 2023 demonstrates its resilience. It also shows diversification success and commitment to global competitiveness. With sectoral growth, increasing foreign investments and promising projections for 2024, Abu Dhabi solidifies its position as a preferred destination for talents, investments, and businesses. As Abu Dhabi continues to evolve, its strategic initiatives and dynamic business landscape pave the way for sustained growth and prosperity.
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