Abu Dhabi witnessed in the second quarter (Q2) of 2023 a significant annual growth of 12.3 percent in its non-oil gross domestic product (GDP). This growth, reaching AED154 billion ($41.96 billion), marks the highest level since 2014. It reflects the ongoing diversification efforts of the emirate as it expands beyond the oil sector.
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According to the Statistics Centre – Abu Dhabi (SCAD), the emirate’s total GDP experienced a 3.5 percent annual growth in the three months ending in June. This growth underscores the competitiveness and resilience of Abu Dhabi’s economy, enabling it to successfully navigate global challenges and headwinds.
According to government data, non-oil economic activity has sustained Abu Dhabi’s momentum from the first quarter of this year. During that period, it reached a record high of AED146 billion.
Historic milestone
Abu Dhabi’s total real GDP achieved a historic milestone in the second quarter, reaching AED287 billion. The remarkable growth of non-oil activities played a significant role, contributing to 53.7 percent of the GDP, as indicated by preliminary data from the Statistics Centre.
With the goal of attracting more investment and diversifying its economy, Abu Dhabi has introduced several initiatives to enhance the ease of doing business. These efforts aim to move the emirate away from its dependence on hydrocarbons. In line with this, Abu Dhabi implemented a new industrial strategy last year, aiming to amplify the sector’s contribution to the overall economy.
Six industrial programs
Abu Dhabi has committed to investing AED10 billion in six industrial programs, with the aim of more than doubling the size of the emirate’s manufacturing sector to AED172 billion by 2031. Meanwhile, the hotels and tourism sector, a significant contributor to Abu Dhabi’s non-oil economic growth, is experiencing rapid expansion. The emirate’s Department of Culture and Tourism has stated that Abu Dhabi is on track to achieve its target of attracting 24 million visitors this year, compared to 18 million visitors in the previous year.
Industry analysts predict that the upcoming opening of a new airport terminal in Abu Dhabi next month will enhance the city’s capacity and drive further growth in international visitors and trade flows.
Impressive growth
Furthermore, in 2022, Abu Dhabi’s economy witnessed a remarkable annual growth rate of 9.3 percent, recording the highest growth in the MENA region. Its GDP surpassed AED1.1 trillion. Building upon successful economic strategies, including the Abu Dhabi industrial strategy, the emirate’s non-oil GDP experienced a 9.2 percent annual growth in the first half of 2023.
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