Abu Dhabi’s non-oil economy grows 6.1% in Q1 – News

Abu Dhabi’s non-oil economic value grows to 9-year high in Q1 2023

Abu Dhabi’s gross domestic product (GDP) surged 3.9% in the first quarter of 2023 compared to the same period in 2022, driven by a strong performance in non-oil economic activity.

Statistical estimates provided by the Statistical Center of Abu Dhabi (Scad) pointed to a notable 6.1% increase in non-oil GDP in the first quarter, “driven by the strong performance of the construction, wholesale and retail trade, transport and warehousing, and financial and retail sectors”. insurance services. “

In 2022, Abu Dhabi’s economy will achieve the highest growth rate in the Middle East and North Africa region. The emirate’s GDP grew by 9.3%, while the UAE’s GDP totaled AED 1.62 trillion at constant prices last year, a 7.9% increase for a total of AED 1.86 trillion in current prices – an increase of more Compared to 2021, this is an increase of more than AED 337 billion, or 22.1%.

In a statement, Scad said the growth reflected the successful integration of various economic sectors, the result of tireless efforts to maintain the emirate’s economic diversification.

The emirate’s non-oil GDP (in constant prices) surpassed its highest quarterly value in the past nine years, reaching AED146 billion in the first quarter of 2023, compared with AED137.7 billion in the first quarter of 2022. The volume reached 276 dirhams 600 million. This outstanding growth brought the contribution of non-oil activities to GDP to its highest level in eight years at 52.8%.

“Abu Dhabi is committed to enhancing its economic prospects by enabling a strong, stable, smart and sustainable knowledge economy. Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi, said: “Despite the increasing challenges facing the world, non-oil sector non-oil activities have been experiencing strong growth rates with a contribution of 52.8% to the total gross domestic product (GDP). “Department of Economic Development (added).

“Cultivating Abu Dhabi’s resilient and diversified economy will continue to be a focus for decades to come, while developing human capital and attracting the best talent, investment and economic partners. According to the latest statistics, Abu Dhabi is moving further towards The world is opening up its economy, enhancing the emirate’s attractiveness as an ideal market for foreign investors, businesses, start-ups and entrepreneurs from around the world.”

Abdulla Gharib Alqemzi, Acting Director General of Scad, said that the quarterly GDP statistics show that the Abu Dhabi economy continues to grow rapidly. “This growth provides additional opportunities to attract investment and capital, while reflecting the success of wise leadership’s ambitious vision to enhance the emirate’s global reach.”

Alqemzi said that the first quarter of 2023 saw a strong performance in non-oil activity, characterized by unusually high growth rates. These ratios have significantly increased the sector’s overall percentage contribution to the emirate’s GDP to unprecedented levels. “This achievement demonstrates the UAE’s success in creating an investment climate that fosters economic awareness among current and future investor groups.”

The data showed construction activity outperforming, with the first quarter of 2023 and the fourth quarter of 2022 recording the highest quarterly growth rates in nine years. Compared with the same period of the previous year, the growth rates were 14.4% and 14.5%, respectively.

“This impressive growth is attributable to the industry’s attractiveness for local and foreign investment, as well as its ability to achieve a high completion rate, with a notable 37% increase in the number of newly completed buildings. Thus, by the first quarter of 2023 , the construction sector contributes 8.5 percent to the GDP of the emirate of Abu Dhabi,” the Scad statement said.

Lodging and food services grew 14.5 percent in the first quarter. 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.”

In the first quarter of 2023, the financial and insurance industry will grow by 11.5% year-on-year, reflecting the strong performance of the banking industry, with some banks increasing their net profit by more than 50% this quarter. The finance and insurance sector contributed 6.3 percent to Abu Dhabi’s GDP in the first quarter, the data showed. Transportation and warehousing activity has grown significantly for more than two consecutive years, with a growth rate of 13.6% in the first quarter. “The industry has grown significantly in value over the past two years, with quarterly value added close to AED5 billion, and this growth is evident,” the statement said.

Wholesale and retail trade continued to expand, rising 13.9% quarter-on-quarter. The sector’s value added hit its highest quarterly level in nearly nine years, contributing 6.0 percent to GDP.