The Statistics Centre – Abu Dhabi (SCAD) has published preliminary estimates indicating a 4.1 percent increase in the emirate’s gross domestic product (GDP) for the second quarter of 2024, compared to the same timeframe last year. This growth, Abu Dhabi Media Office reported, is primarily driven by the ongoing development of non-oil sectors, which highlights the effectiveness of Abu Dhabi’s economic diversification initiatives.
Record high GDP
According to the estimates report, Abu Dhabi’s GDP for Q2 2024 reached a historic high, exceeding AED297 billion ($80.86 billion). This figure demonstrates the emirate’s robust economic performance, which propelled the growth of the non-oil economy by 5.7 percent during the first half of 2024, leading to an overall economic expansion of 3.7 percent compared to the first half of 2023.
Non-oil sector performance
Abu Dhabi’s non-oil sector continues to thrive, with non-oil GDP rising by 6.6 percent in Q2 2024, reaching a record AED164.2 billion. This increase elevates the non-oil sector’s contribution to over 55.2 percent of the emirate’s economy, the highest level since late 2014.
Global hub for investment
Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development (ADDED), noted that the strong performance of the economy in recent years showcases its resilience and adaptability to significant shifts in the global economic landscape. He emphasized the acceleration of the transition towards a diversified, smart, and sustainable economy, stating that the economic diversification strategies have established Abu Dhabi as an emerging economic powerhouse and a global hub for talent, businesses, and high-quality investments.
Commitment to future growth
Al Zaabi further explained that their initiatives aim to create a vibrant, globally competitive, and entrepreneurial environment that generates opportunities for everyone, allowing individuals to reach their full potential. As they advance to the next phase of development, he mentioned that their thriving ‘Falcon Economy’ is leveraging advanced technologies to enhance economic growth while prioritizing human development and sustainability.
Economic resilience
Abdulla Gharib Alqemzi, director general of SCAD, highlighted that the statistical estimates for Abu Dhabi’s GDP in Q2 2024 reflect remarkable progress, with significant contributions from key sectors like manufacturing, construction, and finance. He pointed out that these sectors achieved their highest quarterly values, elevating non-oil GDP to a record AED164.2 billion, which is a significant increase from AED154 billion during the same period last year. This performance reinforces Abu Dhabi’s economic resilience in adapting to global challenges and enhances the emirate’s appeal as a destination for sustainable investment.
Construction and manufacturing growth
The estimates indicate that the construction sector experienced an 11.5 percent rise in Q2 2024 compared to the same quarter last year, reaching its highest quarterly value of AED27.5 billion. The sector’s contribution to the emirate’s GDP rose to 9.3 percent, marking the highest level since 2015.
Growth in finance and trade
Manufacturing activities also grew by 2.6 percent in Q2 2024 compared to the same period last year, with its quarterly value reaching AED26.8 billion, accounting for 9 percent of the emirate’s GDP. The finance and insurance sectors recorded impressive growth of 13.4 percent in Q2 2024 compared to the second quarter of 2023, contributing 7.4 percent to GDP, with a value reaching a peak of AED22 billion, further establishing Abu Dhabi as a competitive global investment hub.
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Expansion in retail and services
The wholesale and retail trade sector expanded by 3.3 percent in Q2 2024 relative to the same quarter in 2023, contributing 5.5 percent to GDP with a value of AED16 billion. Additionally, transportation and storage, along with real estate activities, grew by 15.2 percent and 5.5 percent, respectively, achieving values of AED7 billion and AED10 billion, contributing 2.4 percent and 3.4 percent to the emirate’s GDP in the second quarter of 2024.
Information and communication sector
The information and communication sector reached a record value of AED8.5 billion, growing by 4.4 percent in Q2 2024 compared to the same period last year. This sector contributed 2.8 percent to the total GDP of the emirate during that timeframe, underscoring its critical role in Abu Dhabi’s future growth.
Sustained non-oil growth
Abu Dhabi’s non-oil economy has experienced significant growth in recent periods, marked by a quarterly increase of 4.7 percent in Q1 2024 and an annual rise of 9.1 percent in 2023, driven by advancements in key sectors such as industry, finance, and construction.
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