Abu Dhabi GDP grows fastest in six years

Abu Dhabi's economy recorded a six-year high expansion in the first half of 2022 regardless of the global headwinds, signifying the resilience of the non-oil sectors and competitiveness. The emirate's gross domestic product surged 11.2 per cent during the first half compared to the same 2021 period, according to data released by Statistic Centre-abu Dhabi (Scad). “The growth reflects the emirate's robust performance and the ability of the economy to maintain competitiveness and sustain growth despite global economic challenges,” Scad said in a statement.

Abu Dhabi's quarterly GDP growth rate reached its highest value in six years during the second quarter of 2022, jumping to 11.7 per cent compared to the same quarter last year.

At the end of the first half of 2022, the real GDP value (at constant prices) exceeded Dh543 billion, and the value of the non-oil sectors' GDP increased by Dh28.4 billion from the same period last year to reach Dh273 billion in total.

Overall, the GDP growth of the UAE is projected to reach above six per cent in 2022, the International Monetary Fund said in its latest forecast.

The UAE'S near-term economic growth is forecast to be strong, underpinned by a rebound in domestic activity, while elevated oil prices support high surpluses in the fiscal and external balances. Inflationary pressures are expected to moderate gradually, the Washingtonbased lender has said.

“The economy's positive growth rates in Abu Dhabi reflect the profound strength and success of the economic diversification policy, which contributed to the economy's resilience and ability to address global changes posed by geopolitical and economic factors that directly affected strategic sectors such as energy and international trade,” said Mohamed Ali Al Shorafa, chairman of the Abu Dhabi Department of Economic Development (ADDED).

All non-oil economic activities and sectors in Abu Dhabi showed positive growth rates at constant prices during the first half of 2022.

Scad data show that the leading economic activities that contributed to the GDP of Abu Dhabi at constant prices during the first half of 2022 included manufacturing activities with a contribution of 8.1 per cent, while showing a growth rate of 10.2 per cent. In addition, the construction and building activity contributed to the real GDP with 7.7 per cent.