Abu Dhabi's economy grew by 10.5 per cent on an annual basis in the first nine months of 2022, the fastest expansion in the Mena region, driven by strong growth in the non-oil sector, according to government data.
The non-oil sector grew 10.3 per cent annually thanks to government efforts to diversify the economy, boost the private sector's contribution and invest in human capital, the Abu Dhabi Media Office said on Tuesday, citing the latest data released by the Statistics Centre Abu Dhabi (Scad).
The non-oil sector contributed 50.3 per cent to the emirate's gross domestic product, figures showed. It recorded an increase of Dh39 billion ($10.6 billion) from the same period in 2021 to hit Dh417.3 billion by the end of the third quarter.
“Abu Dhabi’s robust economy continues to prove its superiority driven by … its ability to attract foreign direct investments and agile policies that enabled our economy to achieve the strongest growth in the region,” said Ahmed Al Zaabi, chairman of the Abu Dhabi Department of Economic Development (Added).
“The private sector plays a crucial role in supporting the economy’s continued growth, and we will continue to prioritise sustainable economic policies to broaden the investment landscape.”
The UAE’s economy continues to recover from the coronavirus pandemic with higher oil prices and government initiatives to support diversification.
The country's economy, the second largest in the Arab world, is estimated to have grown by 7.6 per cent last year, the highest in 11 years, after expanding by 3.9 per cent in 2021, the UAE Central Bank said.
It is forecast to grow 3.9 per cent this year, while non-oil sector expansion is estimated at 4.2 per cent and oil GDP projected at 3 per cent, the Central Bank said.
Abu Dhabi's “resilient” economic framework, economic competitiveness and macroeconomic stability has helped spur its GDP growth, the statement on Tuesday said.
“According to statistical estimates of the first nine months of 2022, all economic sectors demonstrated impressive growth with the exceptional performance of main economic sectors,” Ahmed Mahmoud Fikri, director general of Scad, said.
Abu Dhabi's real estate sector grew 20.3 per cent annually in the first nine months of the year on a rise in investor interest in waterfront and island communities, Scad said.
Several new waterfront developments have started in the emirate in recent months, including Jubail Island, Saadiyat Island and Reem Island.
The accommodation and food services sector in Abu Dhabi grew 20.2 per cent in the first nine months of 2022 as the emirate hosted 4.1 million international visitors.
Visitors from India accounted for 12 per cent of all non-Emirati hotel guests in Abu Dhabi, totalling 480,000 visitors and increasing 31 per cent from the previous year.
During the first nine months of 2022, the wholesale and retail trade sector reached Dh45 billion, with a 17.4 per cent increase year-on-year. This sector accounted for 5.4 per cent of Abu Dhabi's nine-month GDP, according to Scad.
The transport and storage sector recorded growth of 11.4 per cent during the nine-month period, boosting the emirate's GDP by 1.7 per cent.
Abu Dhabi Airports reported this month that the emirate’s five airports handled a combined total of 15.9 million passengers in 2022, tripling passenger volumes from a year ago.
The manufacturing sector in the UAE's capital grew 8.1 per cent, contributing 8 per cent to the GDP during the first nine months of 2022.
The Abu Dhabi government will invest Dh10 billion across six industrial programmes to more than double the size of the emirate’s manufacturing sector to Dh172 billion by 2031, according to the Abu Dhabi Industrial Strategy announced last year.
The new strategy will boost Abu Dhabi’s trade with international markets, with the aim of increasing the emirate's non-oil exports by 143 per cent to Dh178.8 billion by 2031.
Meanwhile, the city's financial sector grew by 6.9 per cent in the first nine months of 2022 on an annual basis, with a value of Dh28 billion, according to Scad. The sector accounted for 5.5 per cent of the GDP.
“The growing confidence of the international community and the economic growth potential has made Abu Dhabi a preferred destination for investors, businessmen, entrepreneurs, innovators, and other professionals from different parts of the world to the Capital of Capital,” the statement said.
HIJRA
Starring: Lamar Faden, Khairiah Nathmy, Nawaf Al-Dhufairy
Director: Shahad Ameen
Rating: 3/5
Farage on Muslim Brotherhood
Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
THE SPECS
Range Rover Sport Autobiography Dynamic
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Power: 518bhp
Torque: 625Nm
Speed: 0-100kmh 5.3 seconds
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On sale: now
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
More from Neighbourhood Watch:
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
'The Sky is Everywhere'
Director:Josephine Decker
Stars:Grace Kaufman, Pico Alexander, Jacques Colimon
Rating:2/5
Fixtures and results:
Wed, Aug 29:
- Malaysia bt Hong Kong by 3 wickets
- Oman bt Nepal by 7 wickets
- UAE bt Singapore by 215 runs
Thu, Aug 30: UAE v Nepal; Hong Kong v Singapore; Malaysia v Oman
Sat, Sep 1: UAE v Hong Kong; Oman v Singapore; Malaysia v Nepal
Sun, Sep 2: Hong Kong v Oman; Malaysia v UAE; Nepal v Singapore
Tue, Sep 4: Malaysia v Singapore; UAE v Oman; Nepal v Hong Kong
Thu, Sep 6: Final
