SCAD reports 4.1% growth in Abu Dhabi’s GDP in Q2

Statistics Centre - Abu Dhabi (SCAD) has released preliminary estimates revealing a 4.1 per cent growth in the emirate’s gross domestic product (GDP) during the second quarter of 2024, compared to the same period last year.

The growth is largely fuelled by the continued expansion of non-oil sectors, underscoring the success of Abu Dhabi’s economic diversification efforts.

According to the estimates report, Abu Dhabi’s GDP value for Q2 2024 reached a new record surpassing Dhs297 billion, reflecting the emirate’s sustained economic strength, which boosted the growth of the emirate’s non-oil economy during the first half of 2024 by 5.7 percent, pushing the overall economy to grow by 3.7 percent compared to the first half of 2023.

Abu Dhabi’s non-oil activities saw continuous growth, with non-oil GDP increasing by 6.6 percent in Q2 2024, reaching a record Dhs164.2 billion. This brings the share of the non-oil sector to over 55.2 percent of the emirate’s economy, the highest since late 2014.

Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), said, “The continued strong performance of our economy over the past years is a testament to its resilience and agility in responding positively and timely to mega shifts in the global economy as we are accelerating the transition to diversified, smart, and sustainable economy. Our economic diversification efforts have positioned Abu Dhabi as a rising economic powerhouse and a global magnet for talents, businesses, and quality domestic and foreign investments.

“Our initiatives to further enhance a vibrant, globally competitive, and entrepreneurial ecosystem to generate opportunities for all, enabling them to reach their full potential are delivering outstanding results. As we move to the next phase of development, our soaring ‘Falcon Economy’ is leveraging advanced technologies to accelerate the economic growth, while placing human development and sustainability at the core of our initiatives.”

Abdulla Gharib Alqemzi, Director-General of SCAD, said, “The statistical estimates of Abu Dhabi’s GDP for Q2 2024 reflects a remarkable progress, with significant contributions from key sectors such as manufacturing, construction, and finance. These sectors achieved their highest quarterly values, pushing non-oil GDP to a record Dhs164.2 billion, a substantial rise from Dhs154 billion in the same period last year. This performance showcases the resilience of Abu Dhabi’s economy in adapting to global challenges, reinforcing the emirate’s attractiveness as a hub for sustainable investment.”

According to the statistical estimates, the construction activities experienced an increase of 11.5 percent in Q2 2024 compared to the same quarter last year, reaching the highest quarterly value of Dhs27.5 billion. The sector’s contribution to the emirate’s GDP increased to 9.3 percent, the highest since 2015.

Manufacturing activities also expanded by 2.6 percent in the second quarter of 2024 compared to the same quarter last year, with its quarterly value rising to Dhs26.8 billion, accounting for 9 percent of the emirate’s GDP.

The finance and insurance activities reported an impressive 13.4 percent growth in Q2 2024 compared to the second quarter of 2023, contributing 7.4 percent to GDP, with its value reaching the highest level at Dhs22 billion, reinforcing Abu Dhabi’s status as a competitive global investment destination.

The wholesale and retail trade sector grew by 3.3 percent in Q2 2024 compared to the same quarter in 2023, contributing 5.5 percent to GDP and achieving the highest value of Dhs16 billion.

The transportation and storage, and real estate activities grew by 15.2 percent and 5.5 percent respectively, reaching values of Dhs7 billion and Dhs10 billion, and contributing 2.4 percent and 3.4 percent to the emirate’s GDP in the second quarter of 2024.

The information and communication sector achieved a record value of Dhs8.5 billion, growing by 4.4 percent in the second quarter of 2024 compared to the same period last year. The sector contributes 2.8 percent to the total GDP of the emirate during that period, highlighting the importance of this vital sector to Abu Dhabi’s future growth.

Abu Dhabi’s non-oil economy has seen significant growth over recent periods, with a 4.7 percent quarterly increase in Q1 2024 and a 9.1 percent annual surge in 2023, driven by growth in key sectors such as industry, finance, and construction.

WAM