Abu Dhabi private sector grows 35% in eight years to Dh338.9 billion in 2023

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Abu Dhabi's private sector has shown robust growth, reaching Dh338.9 billion in 2023, marking a remarkable 35% increase compared to 2016. This expansion is indicative of the emirate's economic resilience and its commitment to diversification efforts, particularly in non-oil sectors. Led by private enterprises and family-owned businesses, Abu Dhabi's non-oil sector experienced a substantial 9.1% growth in 2023, contributing Dh610 billion to the total real GDP, which accounted for 53.4% of the overall GDP.

Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), emphasized the collaborative efforts that underpin Abu Dhabi's economic success. Despite facing global challenges, the emirate has demonstrated its ability to thrive, showcasing the strength of its 'Falcon Economy' and its capacity for growth. Al Zaabi highlighted the significant role played by the private sector and family-owned businesses in driving economic diversification, with their contributions evident across various high-growth non-oil sectors.

Family-owned businesses hold a substantial presence in key sectors, including construction, finance, wholesale trade, and transportation, reflecting their vital role in driving economic expansion. The construction sector witnessed a notable growth of 13.1% in 2023, reaching over Dh97 billion, while the finance sector surged by 25.5% to Dh79 billion. Similarly, the wholesale trade sector achieved a growth of 7.9%, totaling Dh63 billion, and the transportation sector saw a rise of 17.1% during the same period.

Abdulla Gharib Alqemzi, acting director-general of the Statistics Centre - Abu Dhabi, highlighted the significant growth trajectory of the emirate's non-oil GDP over the past decade, emphasizing its pivotal role in economic diversification. The total real GDP also witnessed a substantial increase, reflecting Abu Dhabi's sustained economic development and diversification efforts.

Key sectors contributing to economic diversification include manufacturing, construction, finance, trade, transportation, real estate, and information and communication technology (ICT). These sectors serve as pillars of Abu Dhabi's economic landscape, driving innovation, investment, and job creation.

Abu Dhabi Investment Office (ADIO) has been instrumental in fostering investment opportunities in various sectors, offering initiatives such as the Musataha Programme, which allows investors to develop government-owned land. ADIO's partnership with Dustour Marine Wooden Boats Trading Est. exemplifies its commitment to supporting the emirate's coastal development initiatives.

The Industrial Development Bureau (IDB) and SMEs sector under the Abu Dhabi Department of Economic Development (DDED) are actively working to enhance the business environment, facilitating ease of doing business, and providing ample opportunities for private sector participation in the emirate's development plans.

Overall, Abu Dhabi's private sector growth reflects a concerted effort towards economic diversification, resilience, and sustainable development, positioning the emirate as a dynamic hub for investment and innovation in the region.