Abu Dhabi's Q3 2024 GDP expands 4.5 percent, marking record quarterly high of $82.2 billion

Abu Dhabi's economy continues to grow, with a strong performance from the non-oil sector. According to statistics released by the Statistics Centre - Abu Dhabi (SCAD), Abu Dhabi's Gross Domestic Product (GDP) grew by 4.5% year-on-year in the third quarter of 2024, reaching 301.8 billion dirhams (approximately US$82.2 billion). Notably, the non-oil sector performed exceptionally well, growing by 6.6%, demonstrating the strength of Abu Dhabi's economy and its ability to exceed global expectations.

Despite a challenging global economic landscape, Abu Dhabi's economy has remained resilient. SCAD's preliminary estimates show that non-oil activities accounted for 54% of Abu Dhabi's overall economy in the third quarter of 2024, underscoring the emirate's commitment to economic diversification. In the first three quarters of this year (January to September), Abu Dhabi's GDP grew by 3.9%, while the non-oil economy expanded by 5.9%, demonstrating the continued resilience of its economy.

His Excellency Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), stated, "The robust performance of Abu Dhabi's economy over the past few years is further testament to the effectiveness of our diversification strategy, proactive policies, advanced regulatory frameworks, and counter-cyclical measures to address global economic and market fluctuations. The thriving Abu Dhabi economy is positioning it as an emerging economic powerhouse and a magnet for global talent, businesses, and investments."

The government is accelerating Abu Dhabi's development by strengthening public-private partnerships, developing high-growth sectors, and continuously making significant capital investments in key areas. In 2024, the Abu Dhabi government approved 144 new projects with a total budget of 66 billion dirhams, focusing on vital sectors such as housing, education, tourism, and natural resources. Additionally, strategic investments in transport infrastructure have initiated multiple transport improvement plans with a budget exceeding 3 billion dirhams. Etihad Rail has also signed significant agreements with leaders in international rail and infrastructure, paving the way for enhanced connectivity and economic integration. Al Zaabi added, "We will double our efforts to accelerate Abu Dhabi's economic growth and transition towards a smart, diversified, and sustainable economy, creating a better future for generations to come."

His Excellency Abdulla Gharib Alqemzi, Acting Director General of SCAD, said, "Abu Dhabi’s economic performance reflects the emirate’s emphasis on diversification and its ability to attract sustained investment. Foreign investment reached 904.5 billion dirhams in 2023, highlighting Abu Dhabi's proactive approach to fostering a dynamic business ecosystem. This success is attributed to the emirate’s exceptional services, high-end infrastructure, robust digital strategy, and visionary leadership, all of which continue to position Abu Dhabi as a global economic hub." Alqemzi also noted that SCAD is committed to providing accurate, timely, and transparent data to support strategic decision-making, and to leveraging advanced technologies and innovative methods to empower decision-makers and stakeholders, thereby driving growth and resilience across all sectors and ensuring the long-term sustainable development of the emirate.

In terms of specific industries, Abu Dhabi's transport and storage sector achieved remarkable growth in the third quarter of 2024, with a growth rate of 18%, reaching a value added of 7.1 billion dirhams. This significant performance is attributed to substantial investments in the sector, including increased general cargo volumes and higher container handling volumes. Increased oil logistics and services, as well as Abu Dhabi Ports revenues, further contributed to the sector's robust growth. Meanwhile, the finance and insurance sector also experienced significant expansion, with a growth rate of 11.6%, contributing 6.4% to Abu Dhabi's GDP and reaching a value added of 19.5 billion dirhams. This growth highlights Abu Dhabi's position as a leading financial center, primarily driven by increased lending and growth in major bank deposits.

The construction sector also maintained an upward trend, growing by 10% in the third quarter of 2024, contributing 8.8% to Abu Dhabi's economy and reaching a value added of 26.7 billion dirhams. The sector's growth is primarily due to significant increases in investments in urban infrastructure projects, leading to a notable rise in employment opportunities in the sector during the same period. The real estate sector grew by 6.1%, with a value added of 10.7 billion dirhams, contributing 3.5% to Abu Dhabi's GDP. These figures highlight the continued demand for high-quality real estate products in Abu Dhabi and the sector's role in driving the emirate's diversified economic base.

Manufacturing remains a significant component of Abu Dhabi's non-oil economy, contributing 29.4 billion dirhams in the third quarter of 2024. The sector grew by 2% year-on-year in the third quarter of 2024, accounting for 9.7% of the emirate's GDP and marking the seventh consecutive quarter as the largest non-oil activity. This performance illustrates Abu Dhabi's success in expanding its industrial base, ensuring the sustainability and competitiveness of its economy. The electricity, gas, and water supply sector also made a significant contribution to the economy in the third quarter of 2024, with a value added of 5.5 billion dirhams. The sector accounted for 1.8% of Abu Dhabi's GDP, with a growth rate of 5%, reflecting the emirate's commitment to sustainability and efficient resource management.