Abu Dhabi private sector surges to $92bn in strong non-oil GDP boost

Family-owned businesses have significantly contributed to the growth

Abu Dhabi is expanding efforts to diversify its non-oil economy and attract investment across sectors including tourism, aviation and technology. Khushnum Bhandari / The National

Abu Dhabi's private sector rose by 35 per cent over the past eight years, hitting a value of nearly Dh339 billion ($92 billion) in 2023, helping accelerate the growth of the emirate's non-oil economy, the Abu Dhabi Department of Economic Development said.

The increase is in line with the growth of the UAE capital's gross domestic product, the department said in a statement on Thursday.

The emirate's non-oil sector also posted a 9.1 per cent annual growth to reach Dh610 billion and contributed 53.4 per cent to total real GDP in 2023, boosted by the private sector and family-owned businesses, it added.

Abu Dhabi's private sector and family-owned businesses "continue to contribute to economic diversification as evidenced by their share in the highest growing non-oil sectors", which is "backed by decades-long experience", Ahmed Al Zaabi, chairman of Added, said.

"The importance of our collaborative efforts is reflected in Abu Dhabi’s growth indicators. Remarkably, we managed to achieve this strong performance despite global challenges, reflecting the strength and resilience of our Falcon Economy and its ability to soar to new heights.”

Mr Al Zaabi was speaking at the second edition of the Al Multaqa quarterly meetings, which was launched in December 2023 in co-operation with the Abu Dhabi Investment Office and Added.

The meetings aim to boost ties with the private sector and empower family offices to achieve commercial success.

"I reiterate the importance of discussing promising opportunities, analysing challenges and working together to overcome them. We are organising these meetings to ensure the exchange of opinions and to benefit from the extensive experiences and knowledge," Mr Al Zaabi said.

Abu Dhabi is expanding efforts to diversify its non-oil economy and attract investment across sectors including tourism, aviation and technology.

The emirate has taken several measures to attract international investors, boost its competitiveness and improve the ease of conducting business.

Its economy grew 3.1 per cent annually in 2023, hitting its highest level in a decade, as a sharp expansion of the non-oil sector drove momentum amid a continuing push for diversification, the government reported on Monday.

The emirate's GDP for the 12 months to the end of December reached Dh1.14 trillion, its best performance in terms of value in 10 years despite challenges and global market fluctuations that affected all sectors, it said.

Major sectors that have contributed to economic diversification efforts included manufacturing, construction, finance, trade, transportation, real estate and ICT, Abdulla Alqemzi, acting director general of the Statistics Centre – Abu Dhabi, said at the meeting.

Abu Dhabi's non-oil GDP grew 28.5 per cent over the past 10 years while total real GDP soared from Dh960.1 billion in 2014 to Dh1.14 trillion last year during the same period, Mr Alqemzi said.

Meanwhile, Adio, through its Musataha Programme, unveiled new investment opportunities for the private sector, enabling investors to develop government-owned land, as well as opportunities in the sports sector, the statement said.

Adio also signed an agreement with Dustour Marine Wooden Boats Trading for a new project to support Abu Dhabi's coastal development in line with urban, social, recreational and economic expansion plans, it said.