Abu Dhabi’s Non-Oil Economy Drives 3.9% GDP Growth in Q1 2023, Statistics Centre Reports

Abu Dhabi’s Non-Oil Economy Drives 3.9% GDP Growth in Q1 2023, Statistics Centre Reports

The Statistics Centre– Abu Dhabi (SCAD) has released estimates revealing that Abu Dhabi’s Gross Domestic Product (GDP) experienced a significant growth of 3.9% in the first quarter of 2023 compared to the same period in 2022. This growth was primarily driven by the robust performance of non-oil economic activities within the emirate.

The statistics highlight a remarkable 6.1% growth in non-oil GDP during Q1 2023, fueled by exceptional performances in sectors such as construction, wholesale and retail trade, transportation and storage, as well as financial and insurance services. This growth showcases the successful integration of various economic sectors, reflecting Abu Dhabi’s continuous efforts to diversify its economy.

Estimates indicate that the non-oil GDP (at constant prices) reached AED 146 billion in Q1 2023, surpassing the highest quarterly value of the past nine years, compared to AED 137.7 billion in Q1 2022. The total GDP for the period reached AED 276.6 billion. Notably, the contribution of non-oil activities to the total GDP reached its highest level in eight years at 52.8%.

Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), emphasized Abu Dhabi’s commitment to strengthening its economic scene and achieving a strong, stable, smart, and sustainable knowledge-based economy. Al Zaabi highlighted the impressive growth rates of non-oil sectors and their increasing contribution to the total GDP, despite global challenges.

Al Zaabi further stated that fostering Abu Dhabi’s resilient and diversified economy would remain a key focus, with continuous efforts to develop human capital, attract investments and economic partners, and position Abu Dhabi as an ideal market for foreign investors, businesses, start-ups, and entrepreneurs.

Abdulla Gharib Alqemzi, Acting Director General of the Statistics Centre – Abu Dhabi, expressed that the quarterly estimates of the Gross Domestic Product statistics demonstrate the continued growth of Abu Dhabi’s economy at remarkable rates. He highlighted the increased opportunities for attracting investments and capital, reflecting the success of the visionary leadership’s efforts in enhancing Abu Dhabi’s global prominence.

The construction sector stood out with exceptional performance, achieving the highest quarterly growth rates in nine years during Q1 2023. The growth rates reached 14.4% and 14.5% in Q1 2023 and Q4 2022, respectively, compared to the corresponding periods of the previous year. The construction sector contributed 8.5% to the gross domestic product of Abu Dhabi during Q1 2023.

Accommodation and food services experienced remarkable growth of 14.5% in Q1 2023 compared to the same period last year. Hotel occupancy rates exceeded 40% during this timeframe, aligning with the strategic plans to attract over 24 million visitors in 2023.

The financial and insurance sector witnessed a remarkable growth of 11.5% in Q1 2023, reflecting the strong performance of the banking sector. Some banks reported net profits exceeding 50% during this quarter. The financial and insurance sector contributed 6.3% to the GDP of Abu Dhabi during Q1 2023.

Transport and storage activities maintained notable growth rates for over two years, recording a growth rate of 13.6% in Q1 2023 compared to the same period last year. The wholesale and retail trade sector sustained expansion, with a growth of 13.9% in Q1 2023 compared to Q1 2022,

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