Construction leads non-oil boost to Abu Dhabi’s GDP

Creative Commons/jaavaaguru

• Highest construction economic growth for nine years
• New building completion rate up 37% year on year
• Non-oil GDP up 6.1% for Q1 2023

Construction in Abu Dhabi grew by 14.4 percent in the first quarter of 2023 – the highest rate for nine years – contributing 8.5 percent to the emirate’s overall GDP.

Completion rates of new buildings rose 37 percent year on year, according to Statistics Centre Abu Dhabi, pushed by interest from local and national investors.

Non-oil activities in Abu Dhabi grew by 6.1 percent over the period and made up 52.8 percent of total GDP, an eight-year high.

The wholesale and retail trade, accommodation and food services, transport and storage, and financial and insurance activities sectors also reported strong growth.

• Abu Dhabi to expand its financial district
• Abu Dhabi to spend $23bn on new neighbourhoods

Total GDP over the period grew 3.9 percent to AED276.6 billion, according to Wam news agency.

Abu Dhabi’s economy achieved the highest growth rate in the Middle East and North Africa region last year, with GDP growing 9.3 percent, SCAD said.

Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development, said: “Abu Dhabi is committed to strengthening its economic scene by achieving a strong, stable, smart and sustainable knowledge economy.

“The non-oil activities have been experiencing strong growth rates despite mounting challenges in the global landscape.”