Abu Dhabi’s Economy Soars with 3.3% GDP Growth in Q1 2024
The bustling city of Abu Dhabi has seen a remarkable 3.3 percent increase in its gross domestic product during the first quarter of 2024, thanks to the flourishing non-oil economic activities driving the growth.
The Statistics Centre of Abu Dhabi reported that the surge is primarily due to the outstanding performance of non-oil economic activities, with the non-oil GDP witnessing a significant 4.7 percent increase in the first three months of the year.
Regional Economic Growth on the Rise
This trend of robust performance in non-oil sectors extends beyond Abu Dhabi, with Saudi Arabia’s real GDP expected to grow by 2.5 percent in 2024, fueled by a solid 4.8 percent increase in non-oil private activities.
Moreover, the Gulf Cooperation Council region is anticipated to experience a rebound in economic growth, with projections indicating a 2.8 percent growth in 2024 and a 4.7 percent growth in 2025, according to the World Bank’s Spring 2024 Gulf Economic Update.
Non-Oil Sectors Lead the Way
The SCAD’s report highlighted that transportation, construction, financial activities, accommodation, and food sectors were at the forefront of this positive economic trend, showcasing the success of the government’s economic diversification policies.
Non-oil activities contributed a significant 54.1 percent to Abu Dhabi’s overall economy during this period, marking the highest level since 2015.
Abu Dhabi’s Economic Landscape
The quarterly value of the non-oil economy in Abu Dhabi reached a staggering 154.7 billion dirhams ($42.1 billion), while the total value of the emirate’s economy, encompassing both oil and non-oil sectors, stood at 286 billion dirhams.
Ahmed Jasim Al-Zaabi, Chairman of the Abu Dhabi Department of Economic Development, expressed optimism about the economy’s consistent growth, emphasizing its resilience and dynamism in the face of global challenges.
Al-Zaabi further highlighted Abu Dhabi’s transition to a smart, diversified, inclusive, and sustainable economy, propelled by strong fundamentals and visionary leadership.
Attracting Global Investments
With the soaring growth in Abu Dhabi, the emirate is forging ahead to solidify its position as a global hub for exceptional talents, businesses, and investments.
The attributes of being the “Capital of Capital” are attracting global financial powerhouses to Abu Dhabi, boosting monetary activities by 9.7 percent and fueling the growth of non-oil sectors.
Sectoral Growth and Foreign Investments
Abdulla Gharib Al-Qemzi, acting director general of SCAD, underscored the sustained growth in non-oil sectors, enhancing Abu Dhabi’s local and international leadership position.
Foreign investments, particularly in construction, have been instrumental in driving the economy forward, with the sector contributing 8.8 percent to the overall economy, surpassing 25 billion dirhams in value.
Focus on Economic Advancement
Abu Dhabi’s commitment to enhancing its global standing is evident in the focus on increasing GDP, non-oil exports, and tourism’s economic contribution.
Key sectors like construction, finance, insurance, telecommunications, accommodation, and food activities have all witnessed significant growth, underscoring the emirate’s dedication to economic diversification.
Strategic Initiatives for Growth
Abu Dhabi’s continuous growth rates are a result of strategic initiatives aimed at economic diversification, industrial sector development, and attracting foreign investments.
The high performance of the non-oil GDP, exceeding 9.1 percent in 2023, is a testament to the emirate’s unwavering commitment to sustainable economic growth and prosperity.