Tuesday 16 April 2024

Abu Dhabi non-oil economy grows 9.1% in 2023

ABU DHABI, 14 days ago

Abu Dhabi's non-oil economy recorded a remarkable growth of 9.1 percent in 2023, while the overall real GDP growth was 3.1 percent compared to 2022, according to preliminary estimates by Statistics Centre - Abu Dhabi (SCAD).
Making significant strides were sectors such as in construction, finance and insurance, and transportation and storage, which contributed over 53 percent to the total GDP, a Wam news agency report said.
During Q4-2023, Abu Dhabi’s economy grew 4.1 percent compared to the same period in 2022, showing continued momentum driven by the expansion of non-oil sectors, which achieved 10.4 percent during the same period.
The emirate’s economy achieved robust growth rates, thanks to the strategic frameworks adopted by Abu Dhabi aimed at promoting economic diversification. This is evident in the development of the industrial, finance, and tourism sectors, the encouragement of foreign investment, and the private sector to provide new job opportunities. This is proven by the strong performance of the non-oil economy, which recorded 9.1 percent and 9.2 percent during 2023 and 2022, respectively, the report said.
The emirate’s GDP in 2023 achieved its best performance in terms of value in 10 years at AED1.14 trillion, despite challenges and global market fluctuations that affect all sectors and geographies in the world. This reflected the success of the strategic policies taken by Abu Dhabi to enhance economic diversification, innovation, and entrepreneurship, it said.
Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), said: “The impressive performance of our ‘Falcon Economy’ during the past few years has proved the effectiveness of Abu Dhabi’s proactive approach to addressing the ever-changing dynamics of the global economy. As evidenced by the exceptional growth of targeted sectors and clusters resulting in a 9.1 percent rise in non-oil sectors and 3.1 percent of real total GDP in 2023 compared to 2022’s growth rate which was the highest in the Middle East and North Africa (MENA) region, Abu Dhabi has reaffirmed its status as a leading, innovative economic powerhouse and magnet for talents, businesses, and quality investments.”
Abdulla Gharib Alqemzi, Acting Director-General of the Statistics Centre - Abu Dhabi, stated: "The strong performance of Abu Dhabi’s economy in 2023 demonstrates the success of its strategic efforts 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."
Expansion of Key Sectors
Statistical estimates show remarkable growth in construction activities by 13.1 percent in 2023 compared to 2022, with the added value of this sector reaching more than AED97 billion, the highest in 10 years, while contributing 8.5 percent to the emirate’s gross domestic product during the same period. 
Also, the added value of manufacturing activities during 2023 was recorded at AED101 billion, representing 8.8 percent of the total gross domestic product, 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 of 25.5 percent and their best performance in terms of value, at AED79 billion, with a contribution to the GDP exceeding 6.9 percent. This reflects 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 percent, with their added value reaching approximately AED63 billion during 2023 compared to 2022, with a contribution rate exceeding 5.5 percent to the emirate’s gross domestic product, according to the results.
Extended growth
The transportation and storage activity achieved a remarkable growth of 17.1 percent during 2023 compared to 2022. This activity includes all operations related to the transport of passengers and goods by land, sea, and air, handling and storage activities, and postal and support activities, it said.
Health and education activities grew 5.5 percent during 2023 compared to 2022, while information and communication and real estate activities grew 5.8 percent during the same period. The growth rate of arts and recreation activities reached 7.8 percent during 2023, while accommodation and food services recorded a growth of 3.1 percent 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, the report said.


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