Abu Dhabi non-oil GDP climbs to nine-year high in Q1 2023
Non-oil economic activities account for 52.8% of Abu Dhabi’s GDP in Q1
Abu Dhabi: Abu Dhabi’s gross domestic product grew 3.9 per cent in the first quarter of 2023, compared to the year-ago period, driven by the robust performance of non-oil economic activities in the emirate, data showed on Monday.
Non-oil GDP during the period grew 6.1 per cent, propelled by strong performances in construction, wholesale and retail trade, transportation and storage, and financial and insurance services, Statistics Centre – Abu Dhabi (SCAD) said in its published statistical estimates.
According to estimates, the non-oil GDP (at constant prices) surpassed the highest quarterly value of the past nine years, reaching Dh146 billion in the first quarter of 2023 compared to Dh137.7 billion in the first quarter of 2022, as the total GDP reached Dh276.6 billion. This growth brought the contribution of non-oil activities to the total GDP to its highest level in eight years at 52.8 per cent.
Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), said: “Abu Dhabi is committed to strengthening its economic scene by achieving a strong, stable, smart and sustainable knowledge-economy. The non-oil activities have been experiencing strong growth rates of non-oil sectors and share of its contribution to the total GDP to 52.8 per cent, despite mounting challenges in the global landscape.”
“Fostering Abu Dhabi’s resilient and diversified economy will continue to be the key focus for decades to come while developing human capital, attracting the best talent, investments, and economic partners. Building upon the latest statistical data, Abu Dhabi is further opening its economy to the world, strengthening the emirate’s appeal as an ideal market for foreign investors, businesses, start-ups, and entrepreneurs from around the world.”
Construction boom
According to data, construction activities achieved the highest quarterly growth rates in nine years during the first quarter of 2023 and the fourth quarter of 2022 in a row. The growth rates stood at 14.4 per cent and 14.5 per cent, respectively, compared to the corresponding periods in the previous year. Overall, the sector contributed 8.5 per cent to the emirate’s GDP during the quarter.
Accommodation, food services expand
Accommodation and food services experienced a growth of 14.5 per cent in the first quarter of 2023 compared to the same period last year. Hotel occupancy rates exceeded 40 per cent during this timeframe.
Financial and insurance activities
The financial and insurance sector grew 11.5 per cent during the period. This growth reflects the strong performance of the banking sector, with some banks reporting net profits exceeding 50 per cent during this quarter. The financial and insurance sector contributed 6.3 per cent to the emirate’s GDP during the quarter.
Transport, storage and trade
Transport and storage activities grew 13.6 per cent during the first quarter, while the wholesale and retail trade sector grew 13.9 per cent, contributing 6 per cent to the emirate’s gross domestic product.
Abu Dhabi achieved the highest growth rate in the Middle East and North Africa region in 2022. During this period, the GDP recorded an impressive growth of 9.3 per cent.