Abu Dhabi Reports 4.1% Growth in Emirate’s GDP and 6.6% Increase in non-oil GDP in Q2 2024

The 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 fueled 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 AED297 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%, pushing the overall economy to grow by 3.7% compared to the first half of 2023.

Abu Dhabi’s non-oil activities saw continuous growth, with non-oil GDP increasing by 6.6 per cent in Q2 2024, reaching a record AED164.2 billion. This brings the share of the non-oil sector to over 55.2 per cent of the emirate’s economy, the highest since late 2014.

His Excellency 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”.

H.E. Al Zaabi adds: “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”.

His Excellency 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 AED164.2 billion, a substantial rise from AED154 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 per cent in Q2 2024 compared to the same quarter last year, reaching the highest quarterly value of AED27.5 billion. The sector’s contribution to the emirate’s GDP increased to 9.3 per cent, the highest since 2015.

Manufacturing activities also expanded by 2.6 per cent in the second quarter of 2024 compared to the same quarter last year, with its quarterly value rising to AED26.8 billion, accounting for 9 per cent of the emirate’s GDP.

The finance and insurance activities reported an impressive 13.4 per cent growth in Q2 2024 compared to the second quarter of 2023, contributing 7.4 per cent to GDP, with its value reaching the highest level at AED22 billion, reinforcing Abu Dhabi’s status as a competitive global investment destination.

The wholesale and retail trade sector grew by 3.3 per cent in Q2 2024 compared to the same quarter in 2023, contributing 5.5 per cent to GDP and achieving the highest value at AED16 billion.

The transportation and storage, and real estate activities grew by 15.2 per cent and 5.5 per cent respectively, reaching values of AED7 billion and AED10 billion, and contributing 2.4 per cent and 3.4 per cent to the emirate’s GDP in the second quarter of 2024.

The information and communication sector achieved a record value of AED8.5 billion, growing by 4.4 per cent in the second quarter of 2024 compared to the same period last year. The sector contributes 2.8 per cent 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 per cent quarterly increase in Q1 2024 and a 9.1 per cent annual surge in 2023, driven by growth in key sectors such as industry, finance, and construction.