Abu Dhabi's economy grew by 4.5 per cent on a yearly basis in the third quarter of 2024, driven by sustained growth in the non-oil sector that continued to fuel the emirate's economic momentum.
The value of Abu Dhabi’s economic output for the three months ending September 30 reached a record Dh301.8 billion ($82.2 billion), emphasising the effectiveness of the emirate's diversification initiatives, the Abu Dhabi Media Office announced on Tuesday, citing data from the Statistics Centre – Abu Dhabi.
Abu Dhabi’s economic surge underscores the efficiency of “multi-dimensional diversification strategy, proactive policies, progressive regulatory frameworks, and countercyclical measures to address mega shifts in the global economy and market fluctuations”, Ahmed Al Zaabi, chairman of the Abu Dhabi Department of Economic Development, said.
“With our focus on strengthening public-private partnerships to develop high-growth sectors, significant government capital investments continue to supercharge Abu Dhabi’s development across key sectors.”
This year, the Abu Dhabi government approved 144 new projects with a budget of Dh66 billion, prioritising housing, education, tourism and natural resources.
Strategic investments in transport infrastructure also led to the launch of several traffic improvement initiatives, with a budget of more than Dh3 billion. Etihad Rail secured major agreements with global leaders in rail and infrastructure, setting the stage for improved connectivity and economic integration.
Abu Dhabi’s economic performance reflects the emirate’s focus on diversification and its ability to attract sustained investments, said Abdulla Alqemzi, director general of Statistics Centre – Abu Dhabi.
Foreign investment, which reached Dh904.5 billion in 2023, “underscores Abu Dhabi’s proactive approach to fostering a dynamic business ecosystem”, he added.
Robust momentum in non-oil sector
Abu Dhabi’s economic growth was driven in large part by the non-oil sector, which surged 6.6 per cent annually in the third quarter of 2024. Its share of the emirate's economy rose to more than 54 per cent.
During the first nine months of the year, Abu Dhabi’s economy jumped by 3.9 per cent, while its non-oil economy recorded a 5.9 per cent increase.
The emirate, which accounts for the bulk of the UAE's oil and gas production, is working 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.
The government is also focused on further developing its financial sector through the expansion of ADGM, 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 previous report.
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 third quarter of this year, construction activities in Abu Dhabi rose by 10 per cent year-on-year, reaching a quarterly value of Dh26.7 billion. The sector’s contribution to the emirate’s economy increased to 8.8 per cent.
In the real estate sector, growth was recorded at 6.1 per cent, and value added at Dh10.7 billion, contributing 3.5 per cent to Abu Dhabi’s gross domestic product.
The manufacturing sector also grew by 2 per cent during the reporting period, with its quarterly value rising to Dh29.4 billion. It contributed 9.7 per cent of the emirate’s GDP, confirming its position as the largest non-oil activity for the seventh quarter in row.
The finance and insurance sector recorded a 11.6 per cent increase, contributing 6.4 per cent to GDP as its aggregate value rose to Dh19.5 billion.
The electricity, gas, and water supply sector added Dh5.5 billion, accounting for nearly 1.8 per cent of Abu Dhabi’s GDP, while transport and storage surged by 18 per cent, contributing Dh7.1 billion.
