Abu Dhabi economy grows fastest in MENA, GDP at 10.5%
Robust growth is being driven by entertainment, sporting events, and cultural experiences
Abu Dhabi: Abu Dhabi’s GDP touched 10.5 per cent in the first nine months of 2022, the highest in the Middle East and North Africa, compared to the same period of 2021.
“Through the knowledge-based economy and a resilient economic framework, Abu Dhabi continued to grow in leaps and bounds at the end of Q3-2022 across its various sectors thanks to the collaborative efforts of various government and private sector organisations,” Statistics Centre - Abu Dhabi (SCAD) said on Wednesday.
Abu Dhabi has launched a number of initiatives in recent years as it focuses on diversifying its economy away from oil, maintaining a prudent fiscal policy and responding to the market needs and trends to upgrade the regulatory and legal frameworks to encourage foreign direct investment.
“Abu Dhabi’s robust economy continues to prove its superiority driven by our leadership’s clear vision, its ability to attract foreign direct investments and agile policies that enabled our economy to achieve the strongest growth in the region,” said Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED). “The private sector plays a crucial role in supporting the economy’s continued growth, and we will continue to prioritise sustainable economic policies to broaden the investment landscape.”
Growth across key economic activities
According to statistical estimates the non-oil sectors contributed 50.3 per cent to GDP, with an increase of Dh39 billion to reach Dh417.3 billion in total by the end of Q3-2022.
The real estate sector experienced an exponential 20.3 per cent growth compared to the same period the previous year. The accommodation and food services sector in the Emirate achieved a growth rate of 20.2 per cent in the first-nine months of 2022. In Abu Dhabi’s tourism sector, hotel occupancy rates, amongst other key indicators, have reached a two-year high. In 2022, Abu Dhabi hosted a total of 4.1 million overnight hotel guests, an increase of 24 per cent on the previous year. Hotel occupancy rates reached 70 per cent, well above the Middle East average of 63.6 per cent making Abu Dhabi one of the top tourism destinations in the region in 2022.
“The robust growth is being driven by increased awareness across international and domestic markets of Abu Dhabi’s offering of entertainment and sporting events, cultural and heritage experiences, and leading international partnerships,” Statistics Centre - Abu Dhabi (SCAD) said.
Other drivers to record growth were retail trade (17.4 per cent), transportation (11.4 per cent) and financial sector (6.9 per cent).