Abu Dhabi's Economic Growth Surges by 3.3% in Q1 2024

Abu Dhabi's economy experienced a notable growth rate of 3.3% in the first quarter of 2024, driven largely by the strong performance of its non-oil sectors. This growth underscores the emirate's successful diversification strategy, which aims to reduce reliance on oil revenues by bolstering other economic areas such as construction, finance, and manufacturing.

The non-oil sector saw significant advancements, contributing to over half of Abu Dhabi's GDP. Construction was particularly robust, with a year-on-year increase of 19% in Q2 2023. This sector now represents nearly 9% of the total GDP, reflecting the success of infrastructure projects and real estate developments. Manufacturing also played a crucial role, growing by 7% and accounting for 8.7% of the total GDP, demonstrating the impact of the Abu Dhabi Industrial Strategy launched in 2022. This initiative has led to a surge in industrial licenses, supporting the emirate’s industrial ambitions.

The financial sector showcased remarkable progress, growing nearly 30% in Q2. This growth is attributed to the strategic initiatives of Abu Dhabi Global Market, which has been attracting major hedge funds and financial institutions. One notable example is Brevan Howard, a major asset management firm that recently expanded its presence in the emirate.

Tourism and transportation sectors also made significant contributions. The transportation and storage activities grew by 17.1% in 2023, showcasing the impact of infrastructure investments such as the expansion of Abu Dhabi International Airport. Meanwhile, wholesale and retail trade activities grew by 7.9%, reflecting increased consumer spending and business activity.

Overall, Abu Dhabi's GDP in Q1 2024 achieved its best performance in a decade, reaching AED 1.14 trillion. This impressive growth amidst global economic fluctuations highlights the emirate’s resilience and the effectiveness of its economic policies. The Statistics Centre - Abu Dhabi (SCAD) attributes this success to strategic frameworks promoting economic diversification, innovation, and foreign investment. These policies have been pivotal in establishing Abu Dhabi as a leading economic powerhouse and an attractive destination for global talents and businesses.

This economic performance not only reinforces Abu Dhabi's status as a dynamic and resilient economy but also sets a positive precedent for its future growth. With ongoing investments and strategic initiatives, the emirate is well-positioned to continue its upward trajectory, further diversifying its economy and reducing its dependence on oil revenues.