Abu Dhabi private sector posts 35% growth reaching Dhs338.9b
The Abu Dhabi non-oil sector is going from strength to strength, recording a growth of 9.1 per cent during 2023 to Dhs610 billion to contribute 53.4% of total real GDP
Building on its efforts to deepen partnership with private sector and family offices, the Abu Dhabi Department of Economic Development (ADDED) organised, in collaboration with Abu Dhabi Investment Office (ADIO), the second edition of Al Multaqa quarterly meetings, presenting business community with recent updates on the Emirate’s economy and achievements in 2023 and highlighting future opportunities.
Launched in Q4-2023, Al Multaqa Meetings empower Abu Dhabi’s to accelerate economic growth, by providing a plaform for ongoing dialogues to support investment and the development of new policies that further enhance the Emirate’s business environment. In 2023, the private sector continued its strong growth, reaching Dhs338.9 billion, up 35% compared to 2016. Supported by private sector and family-owned businesses, Abu Dhabi non-oil sectors is going from strength to strength, recording a growth of 9.1 per cent during 2023 to Dhs610 billion to contribute 53.4% of total real GDP.
Addressing Al Multaqa meeting, Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), said: “The importance of our collaborative efforts is reflected in Abu Dhabi’s growth indicators. Remarkably, we managed to achieve this strong performance despite global challenges, reflecting the strength and resilience of our ‘Falcon Economy’ and its ability to soar to new heights.” ”backed by decades-long experience, the private sector and family-owned businesses in Abu Dhabi continue to contribute to economic diversification as evidenced by their share in the highest growing non-oil sectors”.
Family-owned businesses in Abu Dhabi represent 50 per cent of companies in the construction sector, which grew by 13.1 per cent in 2023 compared to 2022, reaching more than Dhs97 billion; 60 per cent in the finance sector, which rose by 25.5 per cent to Dhs79 billion; 80 per cent in the wholesale trade sector, which achieved a growth of 7.9 per cent, to reach Dhs63 billion; and 70 per cent in the transportation sector, which rose by 17.1 per cent during past year.
Al Zaabi added: “In our first meeting, we underlined the crucial role that family offices and private sector play in Abu Dhabi and the UAE’S success. Today, I reiterate the importance of discussing promising opportunities, analyse challenges, and work together to overcome them. We are organising these meetings to ensure the exchange of opinions and to benefit from the extensive experiences and knowledge.”
Abdulla Gharib Alqemzi, Acting Director General of the Statistics Centre - Abu Dhabi, delivered a comprehensive presentation about economic performance of the Emirate during the past 10 years, which saw a 28.5 per cent growth of non-oil GDP, from Dhs474.6 billion in 2014 to Dhs610 billion in 2023, and a 19 per cent rise of total real GDP, from Dhs960.1 billion in 2014 to Dhs1.14 trillion in 2023.
Alqemzi highlighted major sectors contributing to economic diversification efforts, including manufacturing, construction, finance, trade, transportation, real estate, and ICT. Abu Dhabi Investment Office (ADIO)’S Musataha Programme revealed several investment opportunities offered to the private sector, enabling investors to develop government-owned land. ADIO also announced investment opportunities in the sports field in different areas of the Emirate in addition to new sites that will be offered to develop feed-selling markets.
ADIO has signed agreement with Dustour Marine Wooden Boats Trading Est. to establish a new state-of-the-art project to support the Emirate’s coastal development in line with urban, social, recreational, and economic expansion plans.
Located in Rabadan, the new Al Jaddaf project will provide a comprehensive sea paddle infrastructure tailored for boats. The 79,595 sqm project will encompass buildings dedicated to boat maintenance and repair, a centre for boat buying and selling, a shop catering to fishermen supplies, ample parking lots, boat stores, a café, various shops and restaurants, and a motel. It will also include a berth for 36 boats.
Commenting on the collaboration, Mansoor Al Bastaki, Head of Musataha at ADIO, said, “We are proud to be working with Dustour Marine Wooden Boats Trading Est. to cater to the needs of fishermen and boat owners in an efficient manner. The new Al Jaddaf project underscores the significance of serving coastal regions and will play a key role in supporting Abu Dhabi’s maritime activities and in promoting tourism in the Emirate.”
The Abu Dhabi Urban Planning Council issued the Interim Coastal Development Guidelines for the Emirate to unlock Abu Dhabi’s unique coastal lagoon seting and help shape the Emirate as a city of compact, mixed-use communities showcasing its unique ecosystem and landscapes. The project also supports Abu Dhabi’s Tourism Strategy 2030, which outlines plans to boost visitor numbers to 39.3 million and increase the sector’s GDP contribution to Dhs90 billion by 2030.