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Abu Dhabi’s gross domestic product (GDP) grew by 3.9% year-on-year (YoY) in the first quarter of 2023, driven by the strong performance of non-oil economic activities, estimates released by the Statistics Centre – Abu Dhabi (SCAD) showed on Monday.
Non-oil GDP grew by 6.1% YoY during the first three months, driven by remarkable performances in construction, wholesale and retail trade, transportation and storage, and financial and insurance services sectors.
According to SCAD estimates, the non-oil GDP (at constant prices) exceeded the highest quarterly value of the past nine years, reaching AED 146 billion in the first quarter of 2023, compared to AED 137.7 billion in the first quarter of 2022, as the total GDP reached AED 276.6 billion.
The outstanding growth took the contribution of non-oil activities to the total GDP to its highest level in eight years at 52.8% despite mounting challenges in the global landscape.
Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi Department of Economic Development, stated that the emirate is committed to strengthening its economic scene by achieving a strong, stable, smart and sustainable knowledge economy.
Abdulla Gharib Alqemzi, Acting Director General of the Statistics Centre - Abu Dhabi, added that the quarterly estimates of the GDP reveal the continued growth of the emirate’s economy at remarkable rates.
“This growth presents increased opportunities for attracting investments and capital while reflecting the success of the ambitious vision embraced by the wise leadership in enhancing the emirate’s global prominence.”
According to SCAD, the construction activities reported exceptional performance, achieving the highest quarterly growth rates in nine years in the first quarter of 2023 (14.4%) and the fourth quarter of 2022 (14.5%) in a row.
The impressive growth was due to the sector’s appeal to both local and foreign investments, as well as its ability to achieve high completion rates, with a 37% increase in the number of newly completed buildings. Therefore, the construction sector contributed 8.5% to Abu Dhabi GDP in the first three months.
Accommodation and food services reported a remarkable growth of 14.5% YoY in the first quarter of 2023. Furthermore, the Department of Culture and Tourism data indicated that hotel occupancy rates exceeded 40% in the first quarter.
The financial and insurance sector grew 11.5% YoY, supported by the strong performance of the banking sector. Net profits of some of the banks exceeded 50% during the quarter.
Transport and storage activities maintained consistent performance over two years, recording a growth rate of 13.6% YoY. On the other hand, the wholesale and retail trade sector saw a growth of 13.9% YoY in Q1 2023.
In 2022, Abu Dhabi’s economy achieved the highest growth rates in the Middle East and North Africa region.
SCAD noted that the emirate’s GDP recorded a growth of 9.3% last year, reflecting its competitiveness and favourable investment climate.
(Editing by Seban Scaria seban.scaria@lseg.com)
