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SCAD: Abu Dhabi’s GDP to grow 3.9% in Q1 2023

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Budhabi Q1 2023 GDP growth GettyImages-1316754718

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Abu Dhabi’s Gross Domestic Product (GDP) grew by 3.9% in the first quarter of 2023 compared to the same period in 2022, according to findings released by the Statistical Center of Abu Dhabi (SCAD).

The increase was attributed to the strong performance of non-oil economic activity in the emirate, the state news agency reported. WAM.

Statistics show non-oil GDP growth of 6.1% in the first quarter of 2023, driven by outperformance in construction, wholesale and retail trade, transportation and storage, and financial and insurance services.

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

Non-oil GDP (in constant prices) is estimated to surpass its highest quarterly value in the past nine years, reaching AED146 billion in Q1 2023, compared to AED137.7 billion in Q1 2022Total GDP reported at AED276.6 billion WAM.

The robust growth brought non-oil activity’s contribution to GDP to its highest level in eight years at 52.8%.

Ahmed Jassim Zabi, Chairman of the Abu Dhabi Department of Economic Development, said: “Abu Dhabi is committed to strengthening its economic landscape by enabling a strong, stable, smart and sustainable knowledge economy. Despite serious challenges, non-oil activities in the non-oil sector have been experiencing strong growth rates, with a contribution of 52.8% to GDP.

“According to the latest statistics, Abu Dhabi is further opening up its economy to the world, enhancing the emirate’s attractiveness as a market of choice for foreign investors, businesses, start-ups and entrepreneurs from around the world.”

Abdulla Gharib Alqemzi, Acting Director General of SCAD, said: “The quarterly estimates of GDP statistics show that the Abu Dhabi economy continues to grow at an impressive rate. The success of the ambitious vision to strengthen the emirate’s global presence.”

Sectoral Contribution to GDP Growth

put up: According to recent figures released by SCAD, construction activity has outperformed, posting its highest quarterly growth rate in nine years in a row in the first quarter of 2023 and the fourth quarter of 2022. Compared with the same period of the previous year, the growth rates were 14.4% and 14.5%, respectively.

This growth was attributed to the industry’s attractiveness for local and foreign investment, as well as its ability to achieve high completion rates, with a notable 37% increase in the number of newly completed buildings. As a result, the construction sector will contribute 8.5% of Abu Dhabi’s GDP in Q1 2023.

Image source SCAD/WAM

Accommodation and catering services: Statistics show that in the first quarter of 2023, accommodation and catering services will increase by 14.5% year-on-year.

Figures from the Ministry of Culture and Tourism show hotel occupancy rates exceeded 40 percent during the period. These figures underscore the successful implementation of the emirate’s vision and strategic plan to attract more than 24 million tourists by 2023.

financial insurance: According to statistics, the financial and insurance industry will grow by 11.5% year-on-year in the first quarter of 2023.

The increase reflects a strong performance in the banking sector, with some banks reporting net profits of more than 50% for the quarter.

Statistics show that in the first quarter of 2023, the contribution rate of the financial and insurance industry to Abu Dhabi’s GDP is 6.3%, highlighting people’s great confidence in the local economy.

Transport and storage: Transportation and warehousing activity has continued to grow for more than two consecutive years, with a 13.6% increase in the first quarter of 2023 compared to the same period last year.

This growth is evident in the substantial increase in the value of the sector over the past two years, with quarterly value added approaching AED5 billion. The active movement of passengers and cargo by land, air, and sea transport modes and associated storage activities explain this growth.

Wholesale and retail trading: According to the statistics released by SCAD, Abu Dhabi’s wholesale and retail trade industry continues to expand, with a significant increase of 13.9% in the first quarter of 2023 compared to the same period in 2022.

The sector’s value added reached its highest quarterly level in the past nine years, with a contribution of 6% to GDP, showing significant growth in the emirate’s local market.

Notably, the Abu Dhabi economy will achieve the highest growth rate in the MENA region in 2022.

The impressive GDP growth of 9.3% during the period demonstrated continued growth and reaffirmed Abu Dhabi’s leading position as its competitiveness and favorable investment climate continue to attract businesses and investors.



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