Abu Dhabi GDP shows 3.9% growth in Q1 2023: SCAD

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The Statistics Centre – Abu Dhabi (SCAD) has published its findings, which show that Abu Dhabi’s gross domestic product (GDP) grew by 3.9 per cent in Q1 2023 compared to the same period in 2022.

The growth was attributed to the emirate’s robust performance of non-oil economic activities, according to the state news agency, WAM.

The statistics indicate a  6.1 per cent growth in non-oil GDP during the first quarter of 2023, driven by exceptional performances in construction, wholesale and retail trade, transportation and storage, and financial and insurance services.

This growth reflects the successful integration of various economic sectors, as a result of the relentless and continuous efforts to maintain the emirate’s economic diversification.

According to estimates, the non-oil GDP (at constant prices) surpassed the highest quarterly value of the past nine years, reaching Dhs146bn in Q1 2023 compared to Dhs137.7bn in Q1 2022, as the total GDP reached Dhs276.6bn, reported WAM.

This robust growth brought the contribution of non-oil activities to the total GDP to its highest level in eight years at 52.8 per cent.

Statistical estimates indicate a remarkable 6.1% growth in non-oil GDP during the first quarter of 2023, propelled by exceptional performances in construction, wholesale and retail trade, transportation and storage, and financial and insurance services. pic.twitter.com/u6wzXXgbpw

— Statistics Centre – Abu Dhabi (@adstatistics) June 26, 2023

Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development, said, “Abu Dhabi is committed to strengthening its economic scene by achieving a strong, stable, smart and sustainable knowledge-economy. The non-oil activities have been experiencing strong growth rates of non-oil sectors and share of its contribution to the total GDP to 52.8 per cent, despite mounting challenges in the global landscape.

“Building upon the latest statistical data, Abu Dhabi is further opening its economy to the world, strengthening the emirate’s appeal as an ideal market for foreign investors, businesses, start-ups, and entrepreneurs from around the world.”

Abdulla Gharib Alqemzi, acting director general of SCAD, stated, “The quarterly estimates of the GDP statistics reveal the continued growth of the economy of Abu Dhabi at remarkable rates. This growth presents increased opportunities for attracting investments and capital while reflecting the success of the ambitious vision embraced by the wise leadership in enhancing the emirate’s global prominence.”

Sectoral contribution to GDP growth

Construction: According to the recent data published by the SCAD, the construction activities have demonstrated exceptional performance, achieving the highest quarterly growth rates in nine years during Q1 2023 and the Q4 2022 in a row. The growth rates stood at 14.4 per cent and 14.5 per cent respectively, compared to the corresponding periods in the previous year.

This growth is attributed to the sector’s appeal to both local and foreign investments, as well as its ability to achieve high completion rates, with a notable increase of 37 per cent in the number of newly completed buildings. As a result, the construction sector contributes 8.5 per cent to the GDP of Abu Dhabi during Q1 2023.

Accommodation and food services: Statistical estimates reveal that accommodation and food services experienced a remarkable growth of 14.5 per cent in Q1 2023 compared to the same period last year.

Data from the Department of Culture and Tourism indicates that hotel occupancy rates exceeded 40 per cent during this timeframe. These figures highlight the successful implementation of the visions and strategic plans established by the emirate, aiming to attract over 24 million visitors in 2023.

Financial and insurance: Statistical estimates reveal a remarkable growth of 11.5 percent in the financial and insurance sector during  Q1 2023, compared to the same period last year.

This growth reflects the strong performance of the banking sector, with some banks reporting net profits exceeding 50 percent during this quarter.

Statistical data indicates that the financial and insurance sector contributes 6.3 percent to the GDP of Abu Dhabi in Q1 2023, highlighting the significant confidence in the local economy.

Transport and storage: Transport and storage activities have maintained growth rates for over two years, recording a growth rate of 13.6 per cent during Q1 2023 compared to the same period last year.

This growth is evident from the substantial increase in the value of this sector over the past two years, with the quarterly added value approaching Dhs5bn. The active movement of passengers and goods through land, air, and sea transportation means, along with associated storage activities, explains this growth.

Wholesale and retail trade: According to the statistical results published by SCAD, the wholesale and retail trade sector in Abu Dhabi has sustained expansion, with a notable growth of 13.9 per cent during Q1 2023 compared to the same period in 2022.

The added value of this sector reached its highest quarterly level in the past nine years, contributing 6 per cent to the gross domestic product, showcasing the remarkable growth witnessed by the local markets in the emirate.

It is worth noting that Abu Dhabi’s economy achieved the highest growth rates in the Middle East and North Africa region in 2022.

During this period, the GDP recorded an impressive growth of 9.3 per cent, showcasing consistent growth, and reaffirming the leading position of Abu Dhabi, due to its competitiveness and favourable investment climate, which continues to attract businesses and investors.