Connect with us

Business Insights

Abu Dhabi Economy Surges 3.1% in 2023 Driven by Non-Oil Sector Expansion

Abu Dhabi Economy Surges 3.1% in 2023 Driven by Non-Oil Sector Expansion

Abu Dhabi’s economy experienced a robust growth of 3.1% in 2023, marking its highest level in a decade, propelled by a significant expansion in the non-oil sector. The Gross Domestic Product (GDP) of the emirate reached Dh1.14 trillion ($310.63 billion) for the 12-month period, signaling a remarkable economic resilience amidst global challenges and market fluctuations.

The surge in the non-oil economy, expanding by 9.1% year-on-year, played a pivotal role in driving Abu Dhabi’s overall growth trajectory. Major contributions from sectors including construction, finance and insurance, and transportation and storage underscored the diversification efforts and economic vibrancy of the emirate. Notably, these sectors accounted for more than 53% of the total GDP, according to data from Statistics Centre Abu Dhabi (Scad).

In the last quarter of 2023, Abu Dhabi witnessed a substantial growth of 4.1% compared to the same period in the previous year. Furthermore, the non-oil economy exhibited a remarkable 10.4% annual growth during this period, reflecting the sustained momentum and resilience of Abu Dhabi’s economic landscape.

Ahmed Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (Added), lauded the success of the emirate’s strategic policies aimed at fostering economic diversification, innovation, and entrepreneurship. He emphasized Abu Dhabi’s proactive approach in navigating the complexities of the global economy, positioning the emirate as a pioneering economic powerhouse and an attractive destination for investment and talent.

The robust growth momentum witnessed in Abu Dhabi’s economy since rebounding from the Covid-induced slowdown reaffirms the effectiveness of the emirate’s strategic initiatives. In 2022, Abu Dhabi recorded a stellar GDP growth rate of 9.3%, surpassing Dh1.1 trillion and outperforming other economies in the Mena region.

Abu Dhabi’s commitment to diversifying its non-oil economy and attracting investment across various sectors, including tourism, aviation, and technology, remains unwavering. The emirate has undertaken measures to enhance its competitiveness, streamline business processes, and foster a conducive environment for investors.

In line with its industrial strategy launched in 2022, Abu Dhabi aims to significantly enhance the contribution of the manufacturing sector to its economy. Investments totaling Dh10 billion across six programs are set to propel the sector’s growth and position Abu Dhabi as a key manufacturing hub by 2031.

Additionally, Abu Dhabi’s ambitious plans to elevate the tourism sector’s contribution to GDP to 12% by 2030 and its long-term strategies for sectors such as aviation and technology underscore the emirate’s commitment to sustainable economic development.

The issuance of over 25,000 economic licenses in 2023, coupled with robust growth across key sectors including construction, manufacturing, and financial services, reflects Abu Dhabi’s resilience and attractiveness as a business destination.

As Abu Dhabi continues to foster economic diversification and resilience, the emirate remains poised to navigate global challenges and seize opportunities for sustainable growth and prosperity.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending