Real Abu Dhabi GDP exceeds AED 1.1 trillion in 2022 – SCAD
ALBAWABA – Abu Dhabi Emirate has reportedly retained a 9.3 percent growth rate in its Gross Domestic Product (GDP) for the year 2022, according to a statement issued by the Statistics Center – Abu Dhabi (SCAD) on Tuesday.
The emirate’s real GDP exceeded AED1.1 trillion in 2022, the center underlined.
Real GDP is an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year.
Compared to the fourth quarter of the year 2021 (Q4-2021), the Emirate of Abu Dhabi achieved 5.9 percent growth in Q1-2023, at AED278.3 billion.
Non-oil sectors also contributed significantly to Abu Dhabi’s economy, at 50.02 percent of the GDP.
Overall, the non-oil sector recorded AED139.6 billion in total value in Q4-2022.
The emirate’s economic growth continues to average higher than the regional rate, SCAD highlighted.
Abu Dhabi x MENA
Economic growth in the Middle East North Africa (MENA) region averaged at 5.4 percent in 2022 the International Monetary Fund (IMF) reported.
In its latest World Economic Outlook update, the IMF estimated a significant decline in the MENA region’s growth rate, by more than 2.2 percent.
The IMF outlook estimated the region’s growth to slow to 3.2 percent in 2023, and then pick up again in 2024, to 3.5 percent.
Meanwhile, the World Economic Forum estimates a steeper slope for the MENA region in 2023, at 3 percent.
Concerns of a regional economic slowdown have been growing since 2022, after a series of U.S. interest rate hikes, the latest of which was on May 4, 2023.
Abu Dhabi’s secret
The strategy, led by the Abu Dhabi Department of Economic Development (ADDED), played a major role in retaining positive growth rates, SCAD explained.
Additionally, the Abu Dhabi Industrial Strategy (ADIS), launched in June 2022, also contributed significantly to the emirate’s economy.
ADIS aims to invest AED10 billion in various subsectors and to create 13,600 jobs in the short term to boost the size of the industrial sector.
The goal is to more than double the size of the sector to AED172 billion and create 13600 new jobs by 2031.
Abu Dhabi’s ultimate goal is to increase the industrial sector's contribution to the GDP to AED 300 billion. In addition to boosting the emirate's non-oil exports by to AED178.8 billion.
According to Abdulla Gharib al-Gemzi, Acting Director General of SCAD, "the Emirate of Abu Dhabi has achieved remarkable growth rates in its non-oil gross domestic product.”
The emirate’s non-oil GDP registered an 8.4 percent increase by the end of 2022, he added.
Most of the non-oil subsectors in Abu Dhabi has seen positive growth, SCAD reported.
- 17.1 percent growth in real estate activities
- 16.6 percent growth in health and social work activities
- 11.6 percent growth in wholesale and retail trade activities
- 10.9 percent growth in transportation and storage activities
- 11.9 percent growth in accommodation and food service activities
- 9.7 percent growth in manufacturing activities
- 7.6 percent growth in construction activities
- 7.4 percent growth in finance and insurance activities
According to al-Gemzi, “all economic sectors displayed notable growth, particularly the major economic sectors.”
In the statement that was sent to AlBawaba, ADDED Chairman Ahmed Jasim al-Zaabi explained that “the continued strong performance of Abu Dhabi’s economy is a testament to the leadership's farsighted vision.
It goes to prove the “effectiveness of [the] economic diversification strategy,” he added.
