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Wednesday, March 22, 2023

Abu Dhabi grows fastest in MENA region with 10.5% of GDP

Abu Dhabi grows fastest in MENA region with 10.5% of GDP

Abu Dhabi’s gross domestic product (GDP) will grow by 10.5% in the first nine months of 2022 compared to the same period in 2021, the highest in the Middle East and North Africa (Mena) region.

By delivering a conducive knowledge-based economy and a resilient economic framework, Abu Dhabi continues to grow by leaps and bounds across sectors by the end of the third quarter of 2022, thanks to the concerted efforts of various government and private sector organizations , Statistics Center – Abu Dhabi (SCAD).

Abu Dhabi has strengthened its international standing, maintaining competitiveness and macroeconomic stability.

strong economy

Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (added), said: “Abu Dhabi’s strong economy continues to prove its strengths, supported by our leadership’s clear vision, ability to attract foreign direct investment, and flexible policies , enabling our economy to deliver the strongest growth in the region.”

He added: “Abu Dhabi is a destination of choice for global investors and talent, with its world-renowned cosmopolitan lifestyle and unparalleled infrastructure. The private sector plays a vital role in supporting continued economic growth, We will continue to prioritize sustainable economic policies to broaden investment areas.”

Ahmed Mahmoud Fikri, Director General of Abu Dhabi Statistics Center, said: “Abu Dhabi’s non-oil GDP growth accelerated to reach 10.3% growth by the end of the third quarter of 2022. This growth is attributable to strategic policies led by prudent , policies aimed at diversifying the economy, promoting private sector participation, and investing in human capital. These efforts create a strong economic environment that can rise to the challenge.

impressive growth

He added: “Based on statistical estimates for the first nine months of 2022, all sectors of the economy have shown impressive growth, with the major sectors performing very well. This includes significant growth that bodes well for a brighter outlook, pointing to a buoyant economy develop.”

Abu Dhabi has launched a series of initiatives in recent years, focusing on diversifying the economy away from oil, promoting non-oil economic activities, maintaining a prudent fiscal policy, and gradually responding to market needs and trends to upgrade regulations and laws to encourage foreign direct investment and a framework to promote their domestic investment.

Contribution of non-oil sector to GDP

According to statistical estimates released by the Abu Dhabi Statistics Center, the contribution of the non-oil sector to GDP is 50.3%, an increase of 39 billion dirhams (10.62 billion U.S. dollars) compared with the same period in 2021, and the total will reach 417.3 billion dirhams in 2022. At the end of the third quarter.

Real estate activity up 20.3%

Abu Dhabi’s real estate sector has experienced exponential growth of 20.3% compared to the same period last year. The increase is due to increased real estate activity in the first nine months of 2022, with investors attracted to Abu Dhabi’s renowned beachfront and island communities such as Saadiyat Island, Yas Island, Al Reem Island and Al Raha Gardens.

Accommodation and food services up 20.2%

Abu Dhabi’s accommodation and food services sector has registered a growth rate of 20.2% in the first nine months of 2022. In Abu Dhabi’s tourism industry, key indicators such as hotel occupancy rates reached two-year highs. In 2022, Abu Dhabi will receive a total of 4.1 million overnight hotel guests, an increase of 24% over the previous year. Hotel occupancy reached 70%, well above the Middle East average of 63.6%, making Abu Dhabi one of the top tourist destinations in the region in 2022.

Rising international and domestic awareness of the entertainment and sporting events, cultural and heritage experiences and leading international partnerships that Abu Dhabi offers has driven strong growth.

Wholesale and retail trade activity up 17.4%

The wholesale and retail trade sector reached AED45 billion in the first nine months of 2022, an increase of 17.4% compared to the same period in 2021. The sector accounted for 5.4% of Abu Dhabi’s GDP in the first nine months.

Transportation and warehousing activity up 11.4%

In the first nine months of 2022, the added value of the transport and storage industry will be AED 14 billion, an increase of 11.4%. The sector, which added 1.7 percent to the UAE’s GDP, covers passenger and freight transport by rail, road, water or air, as well as associated warehousing activities. Abu Dhabi Airports reported that by 2022, airports in the UAE will handle a total of 15.9 million passengers.

Manufacturing activity up 8.1%

Manufacturing activity in the UAE will grow by 8.1% in the first nine months of 2022, contributing 8.0% to GDP. With the newly announced Abu Dhabi Industrial Strategy, the manufacturing sector is expected to double in size by 2031, strengthening the emirate’s position as the most competitive industrial hub in the region. The Abu Dhabi government recently announced that it will invest AED10 billion in a series of ambitious industrial projects to more than double the size of the UAE’s manufacturing sector to AED172 billion by 2031.

The new strategy will boost Abu Dhabi’s trade with international markets and aims to increase the emirate’s non-oil exports by 143 percent to AED178.8 billion by 2031.

Financials grew 6.9%

Abu Dhabi’s financial sector has grown by 6.9% in the first nine months of 2022 compared to the same period in 2021, reaching a value of AED 28 billion. The sector accounts for 5.5% of the GDP.

The growing confidence of the international community and the potential for economic growth make Abu Dhabi the destination of choice for investors, businessmen, entrepreneurs, innovators and other professionals from around the world traveling to the “Capital Capital”. — trade arab news agency

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