Supported by strong performance in non-oil activities, Abu Dhabi’s Gross Domestic Product (GDP) grew by 3.9% in the first three months of this year, the Statistics Centre – Abu Dhabi (SCAD) said on Monday.
Estimates showed that the non-oil GDP grew by 6.1% during the first quarter of 2023, driven by the outstanding performance of construction activities, wholesale and retail trade, transportation and storage, financial services, and insurance, which reflected the diversification and integration between the various economic sectors because of the continuous efforts of the Emirate’s government in terms of economic diversification.
The non-oil GDP (at constant prices) exceeded the highest quarterly value during the past nine years, $39.75 146 billion during Q1 of 2023, compared with $37.49 billion during the corresponding period in 2022, to reach the value of GDP (oil and non-oil). to $75.31 billion, and the percentage of non-oil GDP contribution to its highest level in eight years at 52.8%.
Ahmed Jassim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED) said that the Emirate was committed to enhance its growth to establish a strong, stable, smart, sustainable, and knowledge-based economy.
“We will continue to focus on building a diversified and more resilient economy over the coming decades, while developing human capital and attracting the best talents, investments, and partners. The latest statistics show that Abu Dhabi continues to open its doors to the world, which increases the Emirate’s attractiveness as the ideal destination for investors,” Al Zaabi added.
Abdullah Gharib Al Qamzi, Acting Director General of SCAD, said that the quarterly estimates showed the continued growth of the Emirate’s economy at distinct rates that increase the opportunities for attracting investments and capital.
“The strong performance of non-oil activities during Q1 of 2023 reflects exceptional growth rates, which led to unprecedented rates of the percentage of non-oil sectors’ contribution to the Emirate’s GDP. This demonstrates the emirate’s success in providing an investment climate that enhances awareness among the current and future investor community,” Al Qamzi added.
Construction Sector Top
The statistics indicated the construction sector’s outstanding performance as it recorded the highest quarterly growth rates of 14.4% and 14.5% in nine years during Q1 of 2023 and in the previous quarter.
This was due to the sector’s attractiveness for local and foreign investors and its ability to achieve high completion rates with an increase in the number of completed new buildings by 37%. The construction sector contributed 8.5% to the gross domestic product of the Emirate of Abu Dhabi during the first quarter of 2023.
Data from the Department of Culture and Tourism showed that hospitality and food services grew by 14.5% during the first quarter of 2023 compared with the first quarter of last year, with hotel occupancy rates rising to more than 40% during the same period.
Financial and Insurance
The financial and insurance sector grew remarkably by 11.5% during Q1-2023 compared with the same period in 2022, indicating the strong performance of the banking system, in which some banks achieved net profits of more than 50%. This sector contributed 6.3% to the emirate’s GDP during the first quarter of 2023, which reflects the great confidence in the economy of the Emirate.
Even the transportation and warehousing activity recorded a growth rate of 13.6% during Q1 of 2023 and added $1.36 billion during this period.