Abu Dhabi’s GDP without oil grows 59% in 10 years

Abu Dhabi continues its rapid transformation into a global economic powerhouse, a development that was highlighted during the third edition of the quarterly Al Multaqa meetings.

The meetings, which bring together key government figures and stakeholders, provide a comprehensive overview of the emirate’s recent economic achievements and future opportunities.

The latest event, organised by the Abu Dhabi Department of Economic Development (ADDED) in collaboration with the Abu Dhabi Investment Office (ADIO), underlined the emirate’s commitment to sustainable growth and diversification.

“Abu Dhabi’s transformation has made it a preferred destination for talent, investment and business. This is reflected in the latest census results, which show non-oil sectors growing by 59 per cent in a decade, accounting for 54 per cent of GDP compared to 46 per cent in 2011, a 109 per cent increase in highly skilled talent and a 300 per cent increase in foreign investment,” said Ahmed Jasim Al Zaabi, Chairman of ADDED.

He added: “Our partnership with the private sector has been fundamental to accelerating economic growth and diversification, and we remain committed to working closely with industry partners, leveraging innovation and cutting-edge technologies to achieve sustainable economic growth for Abu Dhabi. The Al Multaqa meetings are an example of the spirit of cooperation that will pave the way for us to create a prosperous and sustainable future.”

Abu Dhabi’s non-oil GDP shows steady growth

Abu Dhabi’s non-oil sectors have performed remarkably well in recent years, with construction growing by 22.6 per cent, financial and insurance activities by 39 per cent and manufacturing by 102 per cent over the past decade.

The emirate’s diversified capital market, sovereign wealth funds, strong banking sector, financing options and solid financial framework have made it the “capital of capital”.

The Abu Dhabi Industrial Strategy (ADIS) has led to a 21.7% growth in the industrial sector since its launch in 2022, reinforcing Abu Dhabi’s position as the most competitive industrial hub in the region.

The manufacturing sector currently accounts for 51.3% of the UAE’s industrial GDP, which is expected to rise to AED 197 billion in 2023, up from 46% in 2022.

At the meeting, Rashed Lahej Al Mansoori, Director General of Abu Dhabi Customs, outlined advanced trade facilitation solutions and infrastructure, highlighting Abu Dhabi Customs’ role in helping businesses capitalise on the growing non-oil foreign trade, which increased by 8 per cent in 2023 to AED 281.9 billion.

Presenting opportunities for industry

The event also highlighted investment opportunities under the Smart and Autonomous Vehicles (SAVI) Industry Cluster, launched by ADDED and ADIO in 2023 to position Abu Dhabi as a leader in future mobility solutions across air, land and sea transport.

ADIO highlighted investment opportunities for the private sector through the Musataha programme, which enables the development of government-owned land.

ADDED has signed a memorandum of understanding (MoU) with Al Masaood Energy to establish a solar energy storage unit manufacturing facility and enhance research and development in renewable energy, supporting innovative solutions to combat climate change and promote sustainable development.

The second agreement with Hafilat Industry focuses on developing renewable energy buses in Abu Dhabi and launching a skills program for students and graduates. The goal is to implement modern technologies in the local community and strengthen Abu Dhabi’s industrial position.

Finally, ADDED has partnered with Inovartic Investment on its third collaboration agreement to establish a factory in Abu Dhabi that will produce graphene and graphene-containing products essential to industries such as electronics, healthcare and transportation.

The agreement also includes research and development cooperation aimed at diversifying the economy and attracting major international companies to Abu Dhabi.

Read: Abu Dhabi’s non-oil GDP to grow by over 9% in 2023