The Statistics Centre – Abu Dhabi (SCAD) has announced the Gross Domestic Product (GDP) estimates for the second quarter of 2023, revealing a whopping 12.3% growth of non-oil economy, and a 3.5% increase in the total GDP compared to the same period in 2022, a testament to Abu Dhabi economy’s competitiveness and resilience, enabling it to navigate global economic headwinds.
Abu Dhabi non-oil economic activities have maintained remarkable growth in Q2 2023, leading the value of the emirate’s real non-oil GDP to AED 154 billion, the highest since 2014 to break a record registered in the first quarter of current year, where it surpassed AED 146 billion.
According to preliminary estimates, the value of Abu Dhabi’s real GDP in the second quarter of 2023 reached its highest level at AED 287 billion, driven by the growth of all non-oil activities, to continue the increase of its contribution to the GDP to 53.7%, which boosted the growth of the emirate’s non-oil GDP by 9.2% in the first half of 2023 compared to the same period last year.
His Excellency Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi Department of Economic Development (ADDED), said: “The continued strong performance of Abu Dhabi’s economy despite mounting challenges in the global economic landscape reaffirms success of the emirate’s diversification strategy and adaptability to markets’ shifts. Our comprehensive strategies, prudent policies, countercyclical measures, and business-friendly ecosystem further enhance Abu Dhabi’s position as a rising economic powerhouse and preferred destination for talents, businesses and investments. We remain committed to deliver the objectives of our “Falcon Economy” to reach new heights of sustainable development.”
The remarkable growth of Abu Dhabi’s economy in the first six months of 2023 is attributed to the emirate’s successful economic strategies and policies designed to foster innovation and development, including the Abu Dhabi Industrial Strategy, which is accelerating the transformation of the emirate’s manufacturing sector and strengthening its position as the region’s most competitive industrial hub since its launch in June 2022.
His Excellency Abdulla Gharib Alqemzi, Acting Director General of the Statistics Centre – Abu Dhabi, said: “The non-oil sectors continue to register outstanding growth rates, reaffirming the effectiveness of Abu Dhabi’s economic performance against global challenges. The quarterly GDP estimates substantiate this progress and show that the emirate’s economy is a competitive advantage for investors thanks to the accumulated growth that led to the increase of the total value added of the emirate’s economy to its highest level in the second quarter of 2023 at AED 287 billion with significant contribution of the manufacturing, construction, and financial activities.”
Record Highs in Abu Dhabi’s Non-Oil Economy
Statistical estimates published by the Statistics Centre – Abu Dhabi indicate an exceptional growth in the construction economic activity’s value-added for Q2 2023. This growth rate reached 19.1% year-over-year, making the highest quarterly value-added since 2014, at AED 25.3 billion thanks to its projects’ ability to achieve high completion rates. The construction activity’s contribution to Abu Dhabi’s GDP amounted to 8.8% during Q2 2023.
Similarly, the quarterly growth of the manufacturing activity continued to rise by 7% compared to the same period last year, with the sector also recording its highest quarterly value-added since 2014, achieving AED 25 billion during the second quarter 2023. The contribution of this activity to the total GDP reached 8.7% for the first time in a quarter according to Q2 2023 estimates. The contribution of this activity to non-oil GDP reached 16.2% during same period.
At the same time, the wholesale and retail trade activities reached its highest quarterly value since 2014 at AED 16.7 billion, contributing 5.8% of the total GDP in Q2 2023. During this period, these activities grew at a rate of 13.4% as per the statistical estimates.
Likewise, the value-added of both the information and communications activities and the public health activities hit record highs since 2014, totaling AED 8 billion and AED 4.6 billion respectively. The quarterly growth rate of the two activities on an annual basis reached 14.5% and 9.8%, respectively, compared to the same period last year. The unprecedented growth of these activities reflects positive impact of the wise economic policies followed by the Abu Dhabi government to develop information, communications, and public health services.
Financial sector expands at the fastest pace
According to the statistical estimates, the financial sector exhibited extraordinary growth in Q2 2023, reaching its highest growth rate since 2014 at 29.7%. The sector’s value-added has also escalated to over AED 18 billion for the same quarter, a five-year high, thanks to the prudent financial and banking policies aimed at boosting Abu Dhabi’s competitive edge both locally and globally.
Additionally, the transportation and storage economic activity and the accommodation and food services activity flourished, with growth rates reaching 16.9% and 13.6%, respectively, during the second quarter of 2023 compared to the same period last year.