Abu Dhabi’S Economic Transformation: Non-Oil Sectors Fuel Record Growth In Q2 2024
Date
10/2/2024 3:18:48 PM
(MENAFN- The Rio Times) Abu Dhabi's Economy reached new heights in the second quarter of 2024. The emirate's gross domestic product (GDP) grew by 4.1% compared to the same period last year.
This growth pushed the GDP to a record AED 297 billion ($80.87 billion). The non-oil sector emerged as the primary engine of this economic expansion.
It grew by an impressive 6.6% year-on-year, reaching AED 164.2 billion ($44.71 billion). This figure represents 55.2% of Abu Dhabi's total economy, marking the highest level since late 2014.
Several key sectors contributed significantly to this growth. The construction industry saw a substantial increase of 11.5%, reaching AED 27.5 billion ($7.49 billion).
This sector now accounts for 9.3% of the GDP, its highest contribution since 2015. The finance and insurance sectors also showed remarkable progress.
It grew by 13.4%, contributing 7.4% to the GDP with a value of AED 22 billion ($5.99 billion). This growth cements Abu Dhabi's position as a competitive global investment destination.
Manufacturing expanded by 2.6%, reaching AED 26.8 billion ($7.30 billion) and accounting for 9% of GDP. The transportation and storage sector rose by 15.2% to AED 7 billion ($1.91 billion).
Economic Growth in Abu Dhabi
Real estate activities increased by 5.5% to AED 10 billion ($2.72 billion). The wholesale and retail trade sector grew by 3.3%. It now contributes 5.5% to GDP with a value of AED 16 billion ($4.36 billion).
These figures reflect Abu Dhabi's successful efforts to diversify its economy away from oil dependence. Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development, praised the results.
He highlighted the economy's resilience and agility in responding to global economic shifts. Al Zaabi emphasized the emirate's ongoing transition to a diversified, smart, and sustainable economy.
Abu Dhabi has launched several initiatives to further boost its economic growth. The AgriFood Growth & Water Abundance cluster aims to attract 34.8 billion United States dollars in investments.
This initiative is expected to create over 60,000 new jobs by 2045. The Abu Dhabi Industrial Strategy targets doubling the manufacturing sector to AED 172 billion ($46.84 billion) by 2031.
The emirate continues to focus on attracting foreign direct investment and nurturing a vibrant startup ecosystem. These efforts align with Abu Dhabi's long-term vision for economic diversification.
The emirate aims to reduce its reliance on oil revenues and create a more balanced, sustainable economy. Investments in technology, renewable energy, and advanced manufacturing support this goal.
The strong performance of non-oil sectors positions Abu Dhabi for continued growth. The emirate is solidifying its status as a major economic hub in the region.
In short, as it moves forward, Abu Dhabi's economy appears well-equipped to face future challenges and opportunities.
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