Abu Dhabi Reports Strong Growth of Non-Oil Economy in 2023

Abu Dhabi Reports Strong Growth of Non-Oil Economy in 2023

Transportation and storage activity achieves robust annual growth of 17.1% during the same period

The Statistics Centre - Abu Dhabi (SCAD) has issued preliminary statistical estimates of the Gross Domestic Product (GDP), revealing a strong performance of the non-oil economy, which recorded a growth of 9.1% and 3.1% growth of Abu Dhabi’s real GDP during 2023, compared to 2022.

Transportation and storage activity achieved a remarkable growth of 17.1% during 2023 compared to 2022 according to statistical estimates.

This activity includes all operations related to the transport of passengers and goods by land, sea, and air, handling and storage activities, postal and support activities.

The results demonstrate the economy’s ability to expand amidst the growth of the non-oil economy, making significant strides in the construction, finance and insurance, and transportation and storage economic activities, contributing over 53% to the total GDP.

During Q4 2023, Abu Dhabi’s economy achieved a growth of 4.1% compared to the same period in 2022, showing continued growth driven by the expansion of non-oil sectors which achieved 10.4% during the same period.

The emirate’s economy achieved robust growth rates, thanks to the strategic frameworks adopted by Abu Dhabi aimed at promoting economic diversification.

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This is evident in the development of the industrial, finance and tourism sectors, as well as the encouragement of foreign investment and the private sector to provide new job opportunities.

This is proven by the strong performance of the non-oil economy, which recorded 9.1% and 9.2% during 2023 and 2022, respectively.

The emirate’s gross domestic product in 2023 achieved its best performance in terms of value in ten years at US$310 billion, despite challenges and global markets fluctuations which affect all sectors and geographies in the world.

This reflected the success of the strategic policies taken by Abu Dhabi to enhance economic diversification, innovation and entrepreneurship.

His Excellency Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development, said: “The impressive performance of our Falcon Economy during the past few years proved the effectiveness of Abu Dhabi’s proactive approach to address the ever-changing dynamics of the global economy.

"As evidenced by the exceptional growth of targeted sectors and clusters resulting in a 9.1% rise of non-oil sectors and 3.1% of real total GDP in 2023 compared to 2022’s growth rate which was the highest in the MENA region, Abu Dhabi has reaffirmed its status as a leading, innovative economic powerhouse and magnet for talents, businesses, and quality investments.

“Guided by the wise leadership’s vision, our Economic Diversification 2.0 is building on these solid foundations to guide the transformative journey towards a smart, inclusive, and sustainable development.

"We are delivering the ambitious objectives of our multi-polar socio-economic strategy to transform and accelerate the growth by leveraging advanced technologies, innovation, and entrepreneurial ecosystem to enable all reach their full potential in Abu Dhabi, the capital of capital, and expand globally."

His Excellency Abdulla Gharib Alqemzi, Acting Director General of the Statistics Centre - Abu Dhabi, said: "The strong performance of Abu Dhabi’s economy in 2023 demonstrates the success of Abu Dhabi’s strategic efforts pursued towards diversification and innovation.

"The statistical results indicated an expansion in the non-oil economic activities, as the contribution of the non-oil activities to the GDP reached more than 53%, thanks to the adoption of the incentive policies that enabled talents, entrepreneurs, and investors to make optimal use of business and investment opportunities in Abu Dhabi."

Financial and insurance activities achieved the highest growth rate at 25.5% and their best performance in terms of value at US$21.5 billion, with a contribution to the GDP exceeding 6.9%.

This positive performance had an impact on wholesale and retail trade activities, which achieved a growth of 7.9%, with their added value reaching approximately US$17 billion during 2023 compared to 2022.

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