2 min read
Abu Dhabi’s Construction Sector Continues to Grow Rapidly
by
Anna Fischer
Published 4 Apr 2024
Abu Dhabi’s construction sector experienced notable growth, with a 13.1% increase in 2023 compared to the previous year, reaching over AED 97 billion, marking its highest performance in a decade.
According to preliminary estimates from the Statistics Centre - Abu Dhabi (SCAD), the sector contributed 8.5% to the emirate’s gross domestic product (GDP) during the same period. Real estate activities also saw a growth of 5.8% in 2023.[?]
Non-Oil Economy Growth
The non-oil economy witnessed a significant rise of 9.1% in 2023, contributing to an overall real GDP 3.1% compared to 2022. Key sectors such as construction, finance and insurance, transportation, and storage collectively contributed over 53% to the total GDP.
Fourth Quarter Expansion
During the fourth quarter of 2023, Abu Dhabi’s economy expanded by 4.1% compared to the same period in 2022, driven by the growth of non-oil sectors, which achieved a remarkable 10.4% rate.
Strategic Frameworks and Economic Performance
Abu Dhabi’s strategic frameworks aimed at economic diversification, industrial development, and foreign investment promotion have led to robust financial performance.[?] The GDP in 2023 reached AED 1.14 trillion, reflecting successful policies in enhancing economic diversification and innovation despite global challenges and market fluctuations.
The performance of our Falcon Economy during the past few years proved the effectiveness of Abu Dhabi’s proactive approach to address the ever-changing dynamics of the global economy. The exceptional growth of targeted sectors and clusters has resulted in a 9.1% rise of non-oil sectors and 3.1% of real total GDP in 2023 compared to 2022’s growth rate which was the highest in the MENA region.[?]
Ahmed Jasim Al Zaabi
Chairman of the Abu Dhabi Department of Economic Development
He also highlighted that Abu Dhabi has reaffirmed its status as a leading, innovative economic powerhouse and magnet for talents, businesses, and quality investments.
Sectoral Contributions
Sectoral contributions refer to the specific contributions made by various parts or industries to the overall economy of a region or country.
Manufacturing Activities. Contributed significantly, reaching AED 101 billion, representing 8.8% of the total GDP.
Financial and Insurance Activities. Witnessed the highest growth rate of 25.5%, reaching AED 79 billion, reflecting international confidence in the emirate’s economy.
Wholesale and Retail Trade Activities. Grew by 7.9%, with an added value of approximately AED 63 billion during 2023.
Transportation and Storage Sector. Saw remarkable growth of 17.1% during the same period, encompassing various operations related to transportation, handling, and storage activities.
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