2 min read
Abu Dhabi GDP up to record $327bn as manufacturing, construction and finance thrive
by
Anna Fischer
Published 14 Apr 2025
Abu Dhabi's economy shows remarkable progress in its economic transformation, with non-oil activities reaching a historic 54.7% contribution to GDP. [?]
Source: pexels
The emirate continues to build on its post-pandemic recovery, supported by both oil and non-oil sectors. This progress comes as part of the emirate’s broader efforts to build a sustainable and competitive economy, supported by robust investments in sectors such as manufacturing, finance, tourism, and technology.
The oil sector continues to provide a solid foundation, but the balance is clearly shifting.
The oil sector continues to provide a solid foundation, but the balance is clearly shifting.
Economic Expansion on the Horizon
Building on a 3.1% GDP increase in 2023, Abu Dhabi's economy continues to strengthen due to two main factors: government reforms and stable global energy prices. Ahmed Jasim Al Zaabi, Chairman of Abu Dhabi's Department of Economic Development, highlighted this success:
The emirate’s progressive economic strategies are laying a solid foundation for sustainable growth. Our focus remains on innovation, partnerships, and long-term resilience.
Ahmed Jasim Al Zaabi
Chairman of Abu Dhabi’s Department of Economic Development
Non-Oil Sectors Fuel Growth
Abu Dhabi continues to make steady progress in diversifying its economy, with non-oil sectors now generating the majority of economic output. This achievement signals an important shift for the emirate, which has long been associated with its oil industry.
The strong performance of Abu Dhabi's economy in 2024 underscores the success of economic policies that facilitate business expansion and global trade which resulted in around 300 per cent increase in the foreign investments in Abu Dhabi over a decade.
Ahmed Jasim Al Zaabi
Chairman of Abu Dhabi’s Department of Economic Development
According to Alqemzi's assessment, these figures demonstrate a dual achievement: the emirate's policies have not only attracted significant international investment – tripling over the past decade – but have also fostered an environment where businesses can thrive independently of government spending.
Key sector performance include:
Key sector performance include:
Manufacturing. Remains one of the largest non-oil contributors to GDP with a 9.5% share, reaching AED 111.6 billion — the highest on record. The sector achieved an annual growth rate of 2.7% in 2024 compared to 2023, reflecting the success of the Abu Dhabi Industrial Strategy's (ADIS) programs in driving industrial growth.
Construction. Contributed 9.1% to total GDP, with a growth rate of 11.3% and a record high of AED 107.4 billion.
Financial and Insurance. Grew 10.7% year-on-year to reach AED77.8 billion, contributing 6.6% to the total GDP in 2024, further cementing Abu Dhabi's position as a leading financial hub.
Information and Communication. Grew by 6.6% year-on-year, achieving a record value of AED 32.2 billion and contributing 2.2% to Abu Dhabi's total GDP in 2024.
Wholesale and Retail. Reached its highest-ever value at AED 62.7 billion, contributing 5.3% to the emirate's GDP, with a growth rate of 2.2% in 2024.
Transportation and Storage. Achieved the highest growth rate among all industries in 2024 at 16.9%, driven by infrastructure investments, logistics advancements, and increased trade activity. The sector's contribution stands at 2.4% with a total value of AED 27.8 billion.
Real Estate. Grew by 4.2% in 2024, with its contribution to total GDP reaching 3.5% and a total value exceeding AED 41.7 billion.
Government Initiatives Boost Growth
Abu Dhabi’s government has launched several programs to attract foreign investment and stimulate innovation. The “Falcon Economy” initiative, aimed at boosting private sector participation, and major infrastructure projects like the Hafeet Rail network are expected to accelerate economic activity.
Diversification as a Long-Term Strategy
Reducing reliance on oil has been a priority for Abu Dhabi, with investments pouring into renewable energy, technology, and healthcare. The UAE’s Net Zero 2050 strategy has further spurred developments in green energy, including solar projects and hydrogen hubs.
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