Abu Dhabi’s GDP rises 2.3% in Q2 on buoyant non-oil sector
abu dhabi — Driven by increased buoyancy in non-oil sector, Abu Dhabi’s gross domestic product surged to Dh198.8 billion in the second quarter of 2016, recording a growth of 2.3 per cent compared to the same 2015 period.
In the second quarter, the relative contribution of non-oil activities to Abu Dhabi’s GDP increased to 51.5 per cent compared to roughly 50.9 per cent in the same 2015 quarter.
Stable performances of some key sectors, including tourism, foreign trade and real estate sectors have contributed to the growth, said a new report released on Saturday by Studies Directorate of Abu Dhabi Department of Economic Development.
“The overall reading of the results of development indices in the second quarter reflects higher optimism and confidence among consumers and business community in the emirate’s economic conditions, said the report.
The improved second quarter performance follows the moderate economic growth in first quarter, while Abu Dhabi and the UAE continue their efforts to contain the economic impacts of the international economic developments, especially the continuous fluctuations in oil markets, according to the Abu Dhabi’s Economic Performance Report for Q2 2016, issued in cooperation with Statistics Centre - Abu Dhabi (Scad). Ali Majid Al Mansouri, ADDED chairman, said non-oil sectors enhanced economic growth in the quarter as non-oil GDP growth rate, at fixed prices, reached 3.6 per cent in that quarter.
“Abu Dhabi’s macro economy has been consistent with the prospects compared to its moderate growth rate in first quarter of the same year,” he said.
He pointed out that the relative increase in the contribution of nonoil activities to the GDP reflects the growing role of Abu Dhabi’s nonoil sectors “in accommodating the economy with the challenges related to the international economic developments, including fluctuations in oil prices, and transforming these challenges into an opportunity to promote economic diversity by enhancing non-oil activities.”
Stable performances of some key sectors, including tourism, foreign trade and real estate sectors have contributed to the growth in Abu Dhabi.
— Supplied photo The key factors for the growth are related to strong financial conditions, competitive business environment, attractive investment climate and social stability.
“Such factors enable the economy to adapt to challenges related to the global economy’s unfavorable developments and transform them into an opportunity to go forward and promote the economic diversity in order to achieve the goals of Abu Dhabi economic vision 2030,” said Al Mansouri.
The report reviews Abu Dhabi’s economic performance during the second quarter by way of a detailed reading of the results of development indices, including “Consumer Confidence Index in the Economic Performance, Business Cycle Index, Index of Confidence in the Business Climate, National Family Status Observatory, and Labor Market Demand Indicator.”
The General Index for Consumer Confidence showed higher optimism among consumers in Abu Dhabi across different demographic and social characteristics during the quarter. “This was a result of their better expectations of the future economic conditions and brighter outlook for the impact of the consumer-related measures and procedures taken under the applicable economic policies,” said the report
The General Index of Confidence in the business climate and its sub-indexes have shown higher optimism among business establishments while the performance of the general indicator was affected by establishments’ better evaluation of their own internal conditions, their business sectors and the emirate’s economy as a whole in the same quarter, compared to quarter one of 2016, which in turn affected establishments’ optimism levels, said the report.
The report pointed out that Business Cycle Index showed an upward trend in the quarter due to the improved performance of its subindexes, which reflects the attractive business environment and investment climate of the emirate.
The latest data issued by Abu Dhabi Tourism and Culture Authority showed number of guests rose by 3.31per cent in second quarter compared to the same period in 2015. However, the hotel facilities’ performance in the quarter relatively declined, with regard to the hotel nights, occupancy rate and total revenues.
However, family spending was affected by the international, regional and local economic developments, especially with lower global demand and the uncertainties facing economies of countries such as Japan, China and the UK.
In the real estate sector, the report showed that the rental index value of the housing units in Abu Dhabi was 102.1PP in June 2016, compared to around 108.5PP in the same month in 2015, falling by 5.85 per cent.
— issacjohn@khaleejtimes.com