The private sector in Abu Dhabi has experienced significant growth, with a 35 percent increase over the past eight years. In 2023, its value reached nearly AED339 billion ($92 billion), playing a crucial role in driving the expansion of the emirate’s non-oil economy.
According to the Abu Dhabi Department of Economic Development (ADDED), this growth aligns with the overall growth of Abu Dhabi’s gross domestic product. Additionally, the emirate’s non-oil sector achieved a 9.1 percent annual growth, reaching AED610 billion and contributing 53.4 percent to the total real GDP in 2023. This growth was propelled by the private sector as well as family-owned businesses.
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According to Ahmed Al Zaabi, chairman of ADDED, Abu Dhabi’s private sector and family-owned businesses persistently contribute to economic diversification, as indicated by their involvement in the most rapidly expanding non-oil sectors.
Al Zaabi added that the significance of their collaborative efforts can be seen in the growth indicators of Abu Dhabi. He noted that the strong performance was achieved despite global challenges, which demonstrates the strength and resilience of the Falcon Economy, enabling it to reach new heights.
Abu Dhabi’s economic diversification drive and investment attraction
During the second edition of the Al Multaqa quarterly meetings, which commenced in December 2023 in collaboration with the Abu Dhabi Investment Office and Added, Al Zaabi shared his perspective. These meetings aim to enhance connections with the private sector and facilitate the empowerment of family offices in attaining commercial success.
Al Zaabi emphasized the significance of engaging in discussions about promising opportunities, analyzing challenges, and collaborating to overcome them. He highlighted that the purpose of organizing these meetings is to facilitate the exchange of opinions and leverage the extensive experiences and knowledge of the participants.
Abu Dhabi is actively expanding its endeavors to diversify its non-oil economy and attract investments in various sectors such as tourism, aviation, and technology. The emirate has implemented several measures to enhance its competitiveness, attract international investors, and facilitate a business-friendly environment.
Strong economic growth in Abu Dhabi
According to the government’s report on Monday, Abu Dhabi’s economy experienced an annual growth rate of 3.1 percent in 2023, reaching its highest level in a decade. This growth was primarily driven by a significant expansion in the non-oil sector, which contributed to the momentum of diversification efforts. Despite challenges and fluctuations in the global market impacting all sectors, the emirate’s GDP for the 12-month period ending in December reached AED1.14 trillion, reflecting its best performance in terms of value in a decade.
Major sectors driving economic diversification
Abdulla Alqemzi, acting director general of the Statistics Centre – Abu Dhabi, highlighted that major sectors such as manufacturing, construction, finance, trade, transportation, real estate, and ICT have played significant roles in the pursuit of economic diversification. He noted that Abu Dhabi’s non-oil GDP has grown by 28.5 percent over the past 10 years, while the total real GDP has increased from AED960.1 billion in 2014 to AED1.14 trillion last year within the same period.
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