Abu Dhabi posts highest growth in Mena region as GDP surges

The Abu Dhabi’s gross domestic product (GDP) recorded 10.5 per cent year-on-year growth during the first nine months of 2022, the highest in the Middle East and North Africa.

Latest data released by Statistics Centre — Abu Dhabi (SCAD) showed that the emirate’s real GDP exceeded Dh830 billion during the January-September 2022 period. The SCAD also registered 50.3 per cent contribution of non-oil sectors to the real GDP of the emirate, reflecting an increase of Dh39 billion to reach Dh417.3 billion.

Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development (ADDED), said Abu Dhabi’s robust economy continues to prove its superiority driven by our leadership’s clear vision, its ability to attract foreign direct investments and agile policies that enabled our economy to achieve the strongest growth in the region.

“Abu Dhabi, with its world-renowned cosmopolitan lifestyle and unparalleled infrastructure, is the destination of choice for global investors and talent. The private sector plays a crucial role in supporting the economy’s continued growth, and we will continue to prioritise sustainable economic policies to broaden the investment landscape,” Al Zaabi said.

20.3% growth in real estate activities

Abu Dhabi's real estate sector surged 20.3 per cent due to the rise in real estate activities as investors showed interest in the emirate’s renowned waterfront and island communities such as Saadiyat Island, Yas Island, Al Reem Island and Al Raha Gardens.

The emirate’s accommodation and food services sector rose 20.2 per cent in the first nine months of 2022 while tourism sector, hotel occupancy rates, amongst other key indicators, have reached a two-year high.

“Abu Dhabi hosted 4.1 million overnight hotel guests in January-September period, reflecting a growth of 24 per cent. Hotel occupancy rates reached 70 per cent, well above the Middle East average of 63.6 per cent which makes Abu Dhabi among top tourism destinations in the region in 2022,” according to SCAD statement.

The robust growth is being driven by increased awareness across international and domestic markets of Abu Dhabi’s offering of entertainment and sporting events, cultural and heritage experiences, and leading international partnerships, it added.

Credit goes to strategic policies

Ahmed Mahmoud Fikri, director-general of the SCAD, said the Abu Dhabi has attained accelerating growth rates in the non-oil gross domestic product, culminating in a 10.3 per cent increase by the close of the third quarter of 2022.

“This growth is attributed to the strategic policies of prudent leadership, which have aimed at diversifying the economy, fostering private sector engagement, and investing in human capital. These efforts have established a robust economic environment resilient to challenges,” he said.

Referring to latest data, he said all economic sectors demonstrated impressive growth with the exceptional performance of main economic sectors.

“This included remarkable increases that portend a bright future for indicating a thriving and robust economy,” he said.

8.1% growth in manufacturing activities

The manufacturing activities in the emirate witnessed a growth rate of 8.1 per cent, with a contribution of eight per cent to the GDP during the first nine months of 2022. The manufacturing sector is expected to double in size by 2031 with the newly announced Abu Dhabi Industrial Strategy to strengthen the emirate’s position as the region’s most competitive industrial centre.

— muzaffarrizvi@khaleejtimes.com