Abu Dhabi is witnessing a remarkable economic transformation, with real estate and tourism emerging as key drivers of growth.
The emirate’s strategic shift away from oil dependency is paying dividends, as recent statistics reveal a surge in non-oil sectors.
According to the Statistics Centre – Abu Dhabi (SCAD), the emirate’s GDP increased by 3.3% in the first quarter of 2024 compared to the same period last year, reaching AED286bn ($77.9bn). This growth is largely attributed to the impressive performance of non-oil sectors, particularly real estate and tourism.
Real estate and tourism lead the charge
The construction sector, a significant indicator of real estate activity, grew by an impressive 9.5% in Q1 2024, contributing AED25bn ($6.8bn) to the economy. This surge reflects Abu Dhabi’s ongoing urban development and its increasing appeal to both local and international investors.
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Tourism is proving to be another cornerstone of Abu Dhabi’s economic diversification strategy. The accommodation and food service sector, closely linked to tourism, saw a 6.2% growth in Q1 2024. This uptick underscores the emirate’s growing reputation as a global tourist destination, offering a mix of cultural experiences, luxury accommodations, and world-class attractions.
Economic diversification
The non-oil sector’s contribution to Abu Dhabi’s GDP reached a record AED154.7bn ($42.1bn), marking a 4.7% increase from Q1 2023. This unprecedented growth demonstrates the success of Abu Dhabi’s economic diversification efforts.
Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), commented on this growth: “Our economy continues to deliver consistent, stellar growth, reaffirming its resilience and dynamism to navigate headwinds and global challenges impacting all economies and sectors.”
Other key sectors are flourishing
The finance and insurance sectors have also shown robust performance, with a 9.7% increase in Q1 2024 compared to the same quarter last year. This sector now contributes 7% to the emirate’s economy, reinforcing Abu Dhabi’s position as a regional financial hub.
The transport and storage sectors grew by an impressive 14.4% in the first quarter of 2024, indicating a thriving logistics and infrastructure framework that supports the broader economic landscape.
The manufacturing sector, contributing 8.7% to the GDP, showed a 1.7% growth in Q1 2024, with a total value exceeding AED24.8bn ($6.8bn). Notably, this sector has seen a remarkable 102% increase over the past decade, reflecting sustained industrial development.
Abdulla Gharib Alqemzi, Acting Director General of SCAD, highlighted the emirate’s competitive investment climate, particularly in major activities such as construction. “This status reflects the emirate steadfastly advancement of its global position, focusing on increasing its GDP, non-oil exports, and the tourism sector’s contribution to the economy,” Alqemzi remarked.
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