June 15, 2024
Gulf
Business

Abu Dhabi outperforms other economies in MENA region with 9.3% GDP growth in 2022

The Statistics Centre – Abu Dhabi (SCAD) has released the Gross Domestic Product (GDP) estimates report for 2022, revealing that Abu Dhabi’s economy grew by 9.3% by the end of the year, making it the fastest-growing economy in the Middle East and North Africa (MENA) region. The report attributes this growth to a robust economic framework and a collaborative approach from both the public and private sectors across various sectors. Abu Dhabi’s position as a thriving global hub has been reinforced by strategic diversification policies, including initiatives to attract foreign direct investment and promote domestic investments.

Abu Dhabi outperforms other economies in MENA region with 9.3% GDP growth in 2022

The report highlights the success of Abu Dhabi’s diversification strategy led by the Abu Dhabi Department of Economic Development (ADDED), which includes the nurturing of a business-supportive environment, a robust regulatory framework, unparalleled connectivity and infrastructure, and sustainable and smart economic development. The recently launched Abu Dhabi Industrial Strategy (ADIS) has played a significant role in diversifying the emirate’s economy. ADIS aims to strengthen Abu Dhabi’s position as the most competitive industrial hub in the region by investing AED10 billion in several programmes, which will more than double the size of the sector to AED172 billion, create 13,600 jobs, and increase the emirate’s non-oil exports to AED178.8 billion by 2031.

According to the report, all economic sectors in Abu Dhabi displayed remarkable growth, with the non-oil sectors contributing 50% to the GDP. The real estate activities sector witnessed a remarkable increase of 17.1% compared to 2021, while growth rates in health and social work activities increased by 16.6%. The wholesale and retail trade activities sector displayed a growth rate of 11.6%, and the transport and storage activities sector grew by 10.9%. The accommodation and food service activities sector recorded a growth rate of 11.9%, while the manufacturing activities sector showed a growth of 9.7%. The construction activities sector displayed a clear growth rate of 7.6%, and Abu Dhabi’s finance and insurance activities sector witnessed a remarkable growth of 7.4%.

Abu Dhabi’s economy’s continued strong performance and diversification strategy have established the emirate as a preferred destination for investors, entrepreneurs, innovators, and other professionals from all corners of the world. Ahmed Jasim Al Zaabi, the Chairman of ADDED, views Abu Dhabi’s achievements that have cemented its position as a foundation of the next phase of development; ‘Economic Diversification 2.0.’ He added that ADDED is forging ahead with plans to develop and implement policies and initiatives to address geopolitical, economic, scientific, and technological developments reshaping the economy.