Abu Dhabi's economy grew by an annualised 4.1 per cent in the second quarter of this year, as robust growth in the non-oil sector continued to support economic momentum in the emirate.
The value of Abu Dhabi’s economic output for the three months ending June 30 reached a record Dh297 billion ($80.87 billion), reflecting the success of the emirate's economic diversification efforts, the Statistics Centre – Abu Dhabi said on Tuesday. For the first six months of this year, Abu Dhabi's economy recorded a 3.7 per cent jump on an annual basis, it said.
Growth was driven by Abu Dhabi’s non-oil sector, which expanded by 6.6 per cent in the second quarter of 2024, reaching a record Dh164.2 billion. The non-oil sector's share of the emirate's economy rose to more than 55.2 per cent, its highest since late 2014.
For the first six months of the year, the non-oil sector grew by 5.7 per cent year-on-year.
“The continued strong performance of our economy over the past years is a testament to its resilience and agility in responding positively and timely to mega shifts in the global economy as we are accelerating the transition to diversified, smart, and sustainable economy,” Ahmed Al Zaabi, chairman of the Abu Dhabi Department of Economic Development, said.
“Our economic diversification efforts have positioned Abu Dhabi as a rising economic powerhouse and a global magnet for talents, businesses, and quality domestic and foreign investments.”
Robust momentum
Abu Dhabi's economy has been growing in recent quarters, expanding by 3.3 per cent in the first three months of this year. This growth has been driven by the non-oil sector, which grew by 4.7 per cent annually in the first quarter, following a 9.1 per cent year on year surge in 2023.
The emirate, which accounts for the bulk of the UAE's oil and gas production, is striving to diversify its economy away from hydrocarbons and expand its non-oil industrial base across sectors such as hospitality, real estate, infrastructure, health and education, as well as new economy industries like advanced manufacturing, life sciences and artificial intelligence.
Abu Dhabi is also focused on further developing its financial sector through the expansion of Abu Dhabi Global Market, one of the fastest-growing financial hubs of the Middle East. Finance and insurance activities in the emirate grew by an aggregate 39 per cent over the past 10 years, the Economic Development Department said in a report earlier this year.
The emirate's construction sector has grown by a cumulative 22.6 per cent, while its manufacturing sector has more than doubled over the past decade. Meanwhile, the industrial sector has surged 21.7 per cent since the launch of the Abu Dhabi Industrial Strategy in 2022, according to the government data.
Sectoral performance
In the second quarter of this year, construction activities in Abu Dhabi rose by 11.5 per cent year-on-year, reaching a quarterly value of Dh27.5 billion. The sector’s contribution to the emirate’s GDP increased to 9.3 per cent, its highest level since 2015.
The manufacturing sector also grew by 2.6 per cent during the reporting period, with its quarterly value rising to Dh26.8 billion, or 9 per cent of the emirate’s GDP.
The finance and insurance sector recorded a 13.4 per cent increase, contributing 7.4 per cent to GDP as its aggregate value rose to Dh22 billion. Wholesale and retail trade activities grew by 3.3 per cent, while the transportation and storage and real estate sectors grew by 15.2 per cent and 5.5 per cent respectively, according to the government data.
The information and communication sector reached a record value of Dh8.5 billion, growing by 4.4 per cent year-on-year in the second quarter of 2024. The sector contributed 2.8 per cent to the emirate's total GDP during that period.
