Abu Dhabi’s economy surged in the third quarter of 2024, with growth driven by a robust non-oil sector and a continued push toward diversification. The Statistics Centre – Abu Dhabi (SCAD) recorded a 4.5% year-on-year expansion in Q3 2024, lifting the emirate’s total GDP to a record 301.8 billion dirhams. This performance underscores Abu Dhabi’s resilience in the face of global headwinds and highlights the strength of its multi-layered strategy to broaden economic activity beyond traditional oil-driven income. The non-oil economy in particular stood out by posting a 6.6% growth rate year over year, reinforcing the narrative of a broader, more sustainable growth profile that is less dependent on fossil fuel revenue. Taken together, these indicators point to a solid trajectory for Abu Dhabi’s economy as it moves through 2024, with momentum that policymakers had anticipated when they laid out a plan to diversify. The SCAD data also reveals that non-oil activities contributed 54% of total GDP in Q3 2024, a statistic that confirms the emirate’s strategic pivot toward a more balanced economy and a broader industrial base. This milestone illustrates not only strength in the non-oil domains but also the effectiveness of structural reforms and investment climate enhancements designed to attract both domestic and foreign enterprise.
The quarterly performance in Abu Dhabi’s economy for the first three quarters of 2024 shows a consistent pattern of expansion, with the year-to-date GDP up by 3.9% and non-oil activities contributing a more pronounced 5.9% increase. In a climate where global projections often face revisions, Abu Dhabi’s outturn signals a degree of resilience and forward-looking planning that has become a defining feature of the emirate’s economic policy. The positive trajectory in the third quarter did not occur in a vacuum; it rested on a foundation of sector-specific dynamics, capital allocation, and policy settings that collectively sustain growth across multiple engines of the economy. The stronger signal from non-oil activities indicates that diversification strategies are taking root, translating into tangible output across industries, employment, and investment cycles. This is especially meaningful given the global challenges that have constrained growth in numerous advanced and emerging markets alike. In Abu Dhabi, the results demonstrate the efficacy of a policy mix designed to bolster non-oil sectors while maintaining prudent fiscal and regulatory frameworks.
Ahmed Jasim Al Zaabi, who chairs the Abu Dhabi Department of Economic Development (ADDED), attributed the sustained economic performance to a well-executed, multi-dimensional diversification strategy. He pointed to progressive regulatory frameworks and strategic policy choices as essential pillars that have transformed the emirate into a rising economic powerhouse. Al Zaabi emphasized the importance of a stabilizing policy environment that can accommodate ambitious projects, encourage private sector participation, and attract long-term investment. He highlighted how public-private partnerships, together with substantial government investments, are catalyzing growth across sectors designated as high priority. The underlying message from Al Zaabi is that the current results are not a temporary spike but the culmination of a long-term plan to rebalance Abu Dhabi’s growth drivers toward sectors with higher productivity and longer-term resilience. The “Falcon Economy” metaphor—used to describe Abu Dhabi’s adaptive, forward-leaning approach—echoes across policy circles and business communities alike, signaling a place that seeks to combine global competitiveness with local capability building. The chairman’s remarks aligned with a broader narrative about positioning Abu Dhabi as a global magnet for talent, enterprises, and investment, anchored by strong public-private collaboration and strategic capital allocation.
A notable feature of the 2024 performance is the government’s explicit focus on broad-based development across housing, education, tourism, and natural resources, with 144 new projects approved in 2024. These projects, totaling a budget of 66 billion dirhams, reflect a deliberate agenda to advance social and economic infrastructure that supports long-term growth. The investment mix includes targeted allocations to housing, education, and tourism, complemented by deliberate emphasis on natural resources—areas that are foundational to the emirate’s diversification framework. In addition to the 66 billion dirhams for new projects, 3 billion dirhams were earmarked for transport infrastructure initiatives, including traffic improvements and international agreements secured by Etihad Rail to bolster connectivity within the emirate and beyond. This portion of the investment plan illustrates how Abu Dhabi seeks to knit together urban development with transportation efficiencies, enabling smoother logistics, reduced travel times, and enhanced accessibility for residents, workers, and visitors. The strategic emphasis on transport aligns with the broader objective of strengthening supply chains, supporting industrial clusters, and enabling more vibrant real estate and commercial activity around key corridors and hubs.
This framework of investment and policy is complemented by the SCAD director general Abdulla Gharib Alqemzi’s emphasis on the emirate’s ability to attract foreign investment. Alqemzi highlighted that foreign investment remained a critical driver of growth, citing the impressive total of 904.5 billion dirhams attracted in 2023. He attributed this attraction to Abu Dhabi’s world-class infrastructure and the leadership’s vision, which together create a dynamic business environment conducive to both current and future opportunities. The emphasis on infrastructure as a central enabler of investment reflects a long-standing understanding that connectivity—physical, digital, and logistical—serves as the backbone of economic diversification. It is through this lens that the transport and storage sector’s early-quarter performance is best understood, as a signal that the infrastructure footprint is already translating into tangible economic gains. The sector’s leadership in Q3 2024 with an 18% expansion and a contribution of 7.1 billion dirhams to GDP is a clear demonstration that improvements in general cargo volumes, container handling, and oil logistics are not merely incremental wins but foundational shifts that reshape Abu Dhabi’s industrial landscape.
In summary, the Q3 2024 GDP report from SCAD underscores a sustained, broad-based expansion for Abu Dhabi. The non-oil economy is not only growing faster than the overall economy but is also representing a larger share of activity, signaling a successful pivot away from an oil-centric model toward a more diversified, knowledge- and investment-intensive economy. The manufacturing sector remains a cornerstone of this transformation, while transport, finance, construction, and real estate contribute robustly to the emirate’s growth story. The combination of strong policy direction, strategic investments, and a climate conducive to private sector engagement is reinforcing Abu Dhabi’s reputation as a resilient regional hub with strong prospects for continued development. As the emirate moves into the latter part of 2024 and into the future, the momentum observed in Q3 is likely to influence planning, investment decisions, and corporate strategy across industries, while also inviting further attention from international observers and investors watching Abu Dhabi’s ongoing diversification journey.
Q3 2024 GDP snapshot and non-oil momentum
The latest SCAD release confirms that Abu Dhabi’s economic engine is firing on multiple fronts, with a 4.5% year-on-year rise in GDP in the third quarter of 2024 and a record-high GDP figure of Dhs301.8 billion. The non-oil segment’s 6.6% YoY growth is particularly noteworthy, as it underscores the emirate’s successful transition toward a more balanced economy that relies less on hydrocarbon revenues and more on diversified activities, productivity improvements, and investment-driven expansion. The non-oil magnitude—comprising more than half of the overall GDP—indicates a decisive shift in the composition of economic output, which has meaningful implications for employment, wage dynamics, and long-term sustainability.
SCAD’s preliminary data indicate that non-oil activities contributed 54% to total GDP in Q3 2024, a share that reflects strategic progress in reorienting the economy toward sectors with higher growth potential and greater resilience to global oil price cycles. This distribution is consistent with the broader policy emphasis on diversification and the development of sectors such as manufacturing, logistics, financial services, construction, real estate, education, tourism, and energy-related services. The 54% share signifies not just a numerical milestone but also a qualitative shift in the structure of Abu Dhabi’s economy, where non-oil industries are increasingly driving economic momentum, job creation, and innovation. The data also show that for the first nine months of 2024, GDP expanded by 3.9%, with non-oil activities contributing a more pronounced 5.9% increase, underscoring the persistence of momentum across the year and supporting the narrative of a durable transition away from reliance on oil.
This performance has broad implications for policy formulation, investment decisions, and business strategy. The resilience demonstrated in Q3 2024 occurs amid a backdrop of global uncertainty, including slower growth in some trading partners and tighter financial conditions in parts of the world. Abu Dhabi’s economy, however, has benefited from a combination of proactive government policy, strategic capital deployment, and a favorable regulatory environment that facilitates private sector participation, innovation, and productivity gains. The diversification strategy, as articulated by ADDED leadership, emphasizes a multi-dimensional approach aimed at expanding high-value sectors and accelerating infrastructure development. Public-private partnerships, in particular, are highlighted as a critical mechanism for translating policy ambitions into concrete projects and tangible outcomes, including job creation and capital formation. As a result, the Q3 2024 results reinforce the view that Abu Dhabi’s growth model is designed to withstand external shocks while preserving the ability to grow across multiple channels, thereby reducing macroeconomic volatility and enhancing the emirate’s long-term competitiveness.
As with any macroeconomic report, nuances matter, and the SCAD data provide a platform for deeper analysis of sector-specific drivers, risk factors, and policy implications. The manufacturing sector remains the largest contributor to non-oil GDP, with a growth rate of 2% in Q3 2024 and a value-added output of Dhs29.4 billion. The sector’s 9.7% share of GDP in the non-oil mix underscores its central role in Abu Dhabi’s diversification strategy and industrial policy, supporting the production chain, value creation, and export potential. The electricity, gas, and water supply sector also contributed to growth, adding Dhs5.5 billion and registering a 5% increase. This reflects ongoing investments in energy infrastructure, utility reliability, and capacity expansion that underpin both industrial activity and domestic consumption. The real estate sector grew by 6.1% to contribute Dhs10.7 billion, reflecting sustained demand for high-quality housing and commercial spaces, while the construction sector expanded by 10% to Dhs26.7 billion, driven by urban infrastructure investments and large-scale public works. The transport and storage sector’s 18% growth to Dhs7.1 billion—driven by higher general cargo volumes, enhanced container handling, and oil logistics—highlights the strategic role of logistics networks in supporting Abu Dhabi’s value chains and trade flows. The financial and insurance sector’s 11.6% expansion to Dhs19.5 billion demonstrates the emirate’s evolution into a regional financial hub, supported by increased lending and deposits, which amplify credit availability for businesses and households alike. Collectively, these sectoral dynamics reveal a diversified economy where manufacturing, services, construction, and logistics intersect to create a resilient growth engine poised to absorb external shocks and sustain momentum.
The three core implications of this Q3 performance are clear. First, Abu Dhabi’s growth is increasingly being driven by non-oil sectors that benefit from investments in infrastructure, human capital, and productive capacity, reinforcing the case for continued policy support for diversification. Second, the strength in logistics, manufacturing, and financial services indicates a broad-based improvement in productivity and efficiency that can translate into higher competitiveness, better job creation, and stronger private sector engagement. Third, the data reinforce the importance of the emirate’s investment strategy, including the emphasis on long-term capital projects, PPPs, and strategic regulatory reforms, as essential levers for sustainable growth. As Abu Dhabi advances through 2024 and into the next year, these dynamics will continue to shape the investment climate and business strategies across sectors, while the government’s continued focus on diversification, infrastructure, and regulatory modernization is likely to yield further gains in productivity, resilience, and global competitiveness.
The non-oil engine: diversification in action
The SCAD figures for Q3 2024 confirm that Abu Dhabi’s non-oil economy is not merely growing faster than the oil-based sector; it is increasingly assuming a larger share of overall economic output. At 54%, the non-oil contribution to GDP reflects a successful, data-backed shift toward sectors that offer higher productivity, more diversified buffers against commodity price swings, and a broader base for job creation. This shift is the fruit of deliberate policy choices aimed at reducing the emirate’s exposure to oil markets and leveraging areas where the private sector can play a leading role. The diversification strategy is threefold: expanding high-value sectors through targeted investments, enabling a more favorable business environment through regulatory reforms, and strengthening infrastructure and connectivity to integrate supply chains and markets. The result is a more resilient and dynamic economy that can better absorb external shocks and sustain growth trajectories over the medium and long term.
The leadership’s emphasis on a multi-dimensional diversification approach has translated into tangible outcomes across multiple indicators. First, the government has implemented and refined a regulatory framework that supports private sector activity, fosters innovation, and encourages investment in strategic sectors. This regulatory environment not only reduces friction for businesses but also signals to investors that Abu Dhabi is a stable, predictable place to allocate capital and expand operations. Second, public investments have been calibrated to complement private sector activity, with a clear focus on high-priority sectors that promise social and economic returns—housing, education, tourism, and natural resources among them. Third, the role of public-private partnerships has been elevated as a central mechanism for delivering complex, large-scale projects while distributing risk and aligning incentives among public and private participants. The combination of these elements helps to explain why the non-oil economy is recording higher growth rates and contributing more significantly to GDP in 2024.
In this context, the “Falcon Economy” concept—an evocative way to describe Abu Dhabi’s agile and ambitious growth model—has emerged as a working metaphor for policymakers, investors, and business leaders. It encapsulates the idea of a nimble, globally competitive economy that can soar while maintaining discipline in governance and investment. The emphasis on a comprehensive diversification agenda—ranging from advanced manufacturing to logistics, financial services, and urban development—reflects the emirate’s conviction that long-term prosperity rests on building durable capabilities and institutions. It is not enough to grow quickly; Abu Dhabi aims to grow in a way that creates sustainable value, expands opportunity, and strengthens resilience against external shocks. This narrative is reinforced by concrete metrics, such as the 54% non-oil share and the 6.6% non-oil growth rate in Q3 2024, demonstrating that diversification is more than a slogan—it is a measurable, transformative trend shaping the emirate’s economic future.
The broader implications of stronger non-oil growth extend beyond macroeconomic indicators. For businesses, they signal a more stable operating environment in which capital investment decisions can be made with confidence in demand for non-oil products and services. For workers and communities, a diversified economy promises more varied job opportunities across sectors that have higher value addition and longer-term growth prospects. For policymakers, the non-oil pivot validates the priority given to infrastructure, human capital development, and regulatory modernization as the core levers of sustainable expansion. As Abu Dhabi continues to execute its diversification plan, stakeholders across sectors can anticipate ongoing opportunities in manufacturing, logistics, construction, real estate, and services, all complemented by a robust policy framework and a supportive investment climate.
In the ensuing sections, we delve deeper into sector-specific performance in Q3 2024, the scale and design of Abu Dhabi’s investment and infrastructure push, and the governance and policy environment that undergird this growth trajectory. By mapping the connections among policy decisions, capital allocation, and sectoral outcomes, we gain a clearer sense of how Abu Dhabi’s economy is evolving and where the next inflection points may arise as the emirate reaches the latter part of 2024 and looks toward the future.
Sector-by-sector performance in Q3 2024: winners, drivers, and implications
Abu Dhabi’s economy in the third quarter of 2024 demonstrates a wide distribution of growth across sectors, with transport and storage leading the way, followed by financial services, construction, real estate, manufacturing, and utilities. This sectoral mosaic reveals how investments and policy settings play out in real-world output and value-added terms, and it provides a blueprint for understanding the pathways through which diversification translates into stronger macroeconomic momentum.
The transport and storage sector is the standout performer in Q3 2024, recording an 18% increase in value-added and contributing 7.1 billion dirhams to the emirate’s GDP. The drivers behind this surge include a sustained rise in general cargo volumes, which reflect broader trade activity and the expansion of logistics capacity. Container handling has reached new levels of efficiency and volume, a sign that Abu Dhabi’s port infrastructure—underpinned by ongoing investments and optimized processes—is delivering tangible gains for traders, shippers, and manufacturers relying on global supply chains. Oil logistics, a cornerstone of the energy logistics ecosystem, also benefited from improved efficiency and demand patterns, reinforcing the sector’s critical link to both the energy sector and broader commercial activity. The combination of cargo growth, enhanced container throughput, and higher port revenues demonstrates that Abu Dhabi is strengthening its role as a regional hub for trade and logistics, with downstream benefits for manufacturing, services, and real estate in adjacent corridors and zones.
The financial and insurance sector posted an 11.6% expansion, adding 19.5 billion dirhams to GDP. This performance is indicative of a broader trend toward a more mature financial services ecosystem, characterized by higher lending activity and increased deposits. A stronger financial sector supports business investment by providing more accessible credit and by enabling households to finance consumption and housing, which in turn fuels demand in construction and real estate sectors. The sector’s growth is consistent with Abu Dhabi’s emergence as a key financial hub in the region, where banks, insurers, asset managers, and related financial services providers can operate in a favorable regulatory environment and benefit from a deep capital market infrastructure. The positive momentum in finance also has stimulative effects for other sectors, creating a virtuous cycle of investment, job creation, and productivity improvements that contribute to a broader, more resilient economy.
Construction is another key growth pillar, with a 10% rise in value-added output to 26.7 billion dirhams. This upturn is driven by ongoing urban infrastructure investments and a pipeline of public and private projects that support urban renewal, housing development, and essential urban services. The construction sector’s performance is closely aligned with Abu Dhabi’s long-term urban development strategy, which emphasizes the creation of modern, livable cities with efficient transport networks, sustainable housing, and high-quality public amenities. The real estate sector followed closely with a 6.1% increase, adding 10.7 billion dirhams to GDP as demand for high-quality real estate persists. The property market benefits from a combination of favorable financing conditions, demographic fundamentals, and the perception of Abu Dhabi as a stable, opportunity-rich environment for investment in residential and commercial assets, including office space, retail centers, and logistics-oriented properties.
Manufacturing remained the largest contributor to the emirate’s non-oil GDP, growing by 2% and generating 29.4 billion dirhams in Q3 2024. Manufacturing’s 9.7% share of GDP underscores its status as the critical pillar of the diversification strategy, reflecting the sector’s role in creating higher-value products, enhancing export potential, and stimulating associated service sectors, research and development, and supply chain ecosystems. The sector’s resilience amid global supply chain uncertainties and shifting demand patterns demonstrates the potential for continued expansion, particularly as investment in advanced manufacturing, automation, and energy-efficient technologies yields productivity gains and cost reductions for both domestic and international markets.
The electricity, gas, and water supply sector contributed 5% growth, adding 5.5 billion dirhams and accounting for 1.8% of GDP. This performance points to continued investment in utility services and energy infrastructure, a critical enabler of all other sectors’ activities. A reliable energy and water supply framework supports industrial activity, commercial operations, and housing development, while also enabling the expected transition toward cleaner energy sources and more efficient resource management. The upward trend in this sector highlights the strategic importance of utilities as a backbone for sustainable growth, and it reinforces the case for continued capital expenditure in energy and water utilities to support rising demand and resilience against climate-related risks.
The real estate and construction segments—housing demand, urban development, and infrastructure investment—are structurally linked to Abu Dhabi’s growth narrative. Real estate’s 6.1% growth reflects persistent demand for premium living spaces and commercial properties, as well as the spillover effects from ongoing construction activity. This dynamic suggests a healthy alignment between population growth, urban planning, and private sector confidence, with the potential to create a virtuous cycle of housing supply, rental yields, and financial sector activity. Taken together, sectoral performances depict a diversified growth engine with interlocking drivers: strong logistics networks and port activity stimulate trade and manufacturing, a well-capitalized financial sector supports investment and consumption, construction and real estate expand urban capabilities, and manufacturing provides a steady stream of high-value output.
In addition to the sector-specific details, it is essential to consider the broader investment and policy context that frames these sectoral outcomes. The 144 new projects approved in 2024, with a total budget of 66 billion dirhams, illustrate a coordinated capital allocation that targets both social outcomes and economic competitiveness. Projects in housing, education, tourism, and natural resources reflect a holistic approach to development, combining human capital formation, quality-of-life improvements, and natural-resource stewardship with long-run growth implications. The infrastructure emphasis—particularly the 3 billion dirhams directed toward transport infrastructure and agreements achieved by Etihad Rail—signal a deliberate strategy to intensify connectivity, reduce friction in the movement of goods and people, and unlock efficiencies across sectors. The alignment between sectoral performance and the investment program shows how Abu Dhabi is translating macroeconomic strategy into concrete, measurable progress in the real economy.
The strong sectoral results also carry important implications for policy, investment, and business strategy. For policymakers, the clear lesson is that a diversified growth model with a robust infrastructure backbone can yield broad-based gains across multiple sectors, including those that are more resilient to commodity price fluctuations. For investors, the data reinforce Abu Dhabi’s attractiveness as a stable and forward-looking market with opportunities across manufacturing, logistics, finance, and real estate. For businesses operating in Abu Dhabi, the sectoral mix signals where opportunities may be concentrated and where supply chains and talent pools can be leveraged most effectively. For the workforce, this growth translates into potential employment opportunities and skill development in high-value sectors that are expected to drive the emirate’s economy in the coming years. The sector-by-sector performance thus paints a comprehensive picture of a diversified, dynamic economy in which policy choices, capital discipline, and market confidence intersect to produce tangible value across the economy.
Investment and infrastructure: building the backbone of growth
A central thread in Abu Dhabi’s 2024 growth narrative is the government’s sustained investment in capital projects and infrastructure, designed to underpin non-oil diversification and bolster long-term competitiveness. In 2024, the emirate approved 144 new projects with a total budget of 66 billion dirhams, a signal of sustained confidence in the market’s capacity to absorb and implement large-scale initiatives. The focus areas—housing, education, tourism, and natural resources—are carefully chosen to anchor social development and build a broad-based platform for economic activity. Investment in housing supports urban growth, improves living standards, and stimulates construction activity while expanding the demand for related services and materials. Investments in education strengthen human capital, which in turn enhances productivity, innovation, and the ability to adopt advanced manufacturing processes and digital technologies.
Tourism investments tie into Abu Dhabi’s ambition to diversify the economy by developing a resilient services sector that can attract international visitors, support hospitality infrastructure, and create jobs across related industries such as travel, entertainment, and culture. Investments in natural resources reflect a strategy to optimize extraction, processing, and value-added activities linked to Abu Dhabi’s resource base, with spillovers into manufacturing and logistics. The broader policy framework supports the translation of project pipelines into real outcomes, and the alignment of public expenditure with private sector capabilities helps ensure that investments lead to durable growth.
In addition to the 66 billion dirhams allocated to new projects, 3 billion dirhams were dedicated to transport infrastructure initiatives. These investments are designed to improve physical connectivity and reduce transportation frictions that previously constrained supply chains, labor mobility, and urban development. The emphasis on transport infrastructure is consistent with the sectoral performance that saw transport and storage surge by 18% in Q3 2024, as the improved flow of goods and people enhances productivity and expands economic reach. Etihad Rail’s international agreements further bolster connectivity, linking Abu Dhabi with broader regional networks and strengthening the emirate’s position as a logistics hub. The integration of rail links with road, port, and air corridors is a critical component of a modern, multi-modal transport system that supports commerce, manufacturing supply chains, and tourism flows.
Foreign investment remains a cornerstone of Abu Dhabi’s growth model, with 904.5 billion dirhams attracted in 2023, according to Abdualla Gharib Alqemzi, the SCAD director general. This figure underscores the emirate’s appeal to global capital and its ability to convert capital inflows into productive assets, technology transfer, and employment. Infrastructure quality is a facilitating factor for investment, but it is the alignment between infrastructure, regulatory readiness, and strategic sectoral development that creates a compelling investment environment. Abu Dhabi’s leadership has consistently signaled that a high-quality infrastructure base, coupled with transparent, predictable regulations and robust governance, is essential to sustaining investment momentum and maintaining global competitiveness.
The pipeline of projects and the scale of investment have ripple effects across the economy. Construction activity rises, stimulating demand for skilled labor, materials, and services. Real estate markets respond to the creation of housing and commercial spaces, improving the environment for residents and businesses while contributing to growth in ancillary sectors such as finance, insurance, and professional services. Manufacturing gains from better logistics and energy reliability, while the financial sector supports these activities through credit and risk management products. The concerted approach to investment demonstrates a comprehensive strategy that links capital expenditure with sectoral growth, urban development, and social progress. It also signals to international investors that Abu Dhabi offers a mature, investment-ready environment with a proneness to implement ambitious programs that yield measurable, long-term returns.
The broader implications of the infrastructure-led growth model extend to the emirate’s global position. By strengthening connectivity, the region’s exporters and manufacturers gain access to new markets and supply chains, while importers benefit from improved efficiency and reliability. The transport and storage sector’s performance aligns with the ambitions of expanding trade volumes and logistics capacity, supporting economic growth channels that rely on efficient and secure movement of goods. This synergy between infrastructure, sectoral development, and investment is a core feature of Abu Dhabi’s growth narrative and a signal to stakeholders—whether industry players, policymakers, or academic observers—that the emirate is pursuing a sustainable, long-range trajectory that integrates social progress with economic expansion. The combination of large-scale projects, targeted sector investments, and a strategically curated investment climate is not only shaping the current year’s performance but also shaping the outlook for the years ahead as Abu Dhabi positions itself as a leading regional and global growth hub.
Policy, governance, and the ecosystem that sustains growth
The outcomes of Q3 2024 reflect not only dynamic sectoral shifts and infrastructure investments but also the governance architecture designed to sustain and accelerate Abu Dhabi’s diversification agenda. The Abu Dhabi Department of Economic Development (ADDED) and SCAD operate within a policy environment that prioritizes diversified growth, regulatory modernization, and the efficient deployment of public resources to support private sector activity. One of the central tenets of this framework is the belief that coordinated public and private efforts can unlock higher productivity and spur sustainable development across sectors. The leadership’s emphasis on multi-dimensional diversification suggests a holistic approach that recognizes the interdependencies among sectors such as manufacturing, logistics, finance, construction, housing, and education. The approach seeks to align regulatory changes with market expectations, reduce barriers to entry for new activities, and ensure that government investments are complementary to private sector initiatives rather than duplicative.
Public-private partnerships (PPPs) feature prominently in Abu Dhabi’s growth playbook. These arrangements allow the government to mobilize private capital and technical expertise to deliver essential infrastructure and services, while ensuring predictable returns and risk-sharing structures that can attract long-term investment. By enabling private sector participation in complex, capital-intensive projects, PPPs help distribute risk more evenly and accelerate the pace at which strategic initiatives reach completion. This is particularly important in sectors like transport, housing, and energy where the scale and scope of projects can benefit from combined public and private sector capabilities. The governance framework also places a premium on transparent project selection, robust procurement processes, and strong oversight to maintain efficiency and accountability across large-scale endeavors.
The resilience of Abu Dhabi’s economy in the face of global uncertainty is, in part, a testament to regulatory clarity, policy consistency, and steady leadership. The regulatory environment is designed to support innovation and investment, ensuring that firms—whether local or international—can operate with a reasonable expectation of stability and clarity regarding rules, incentives, and enforcement. The SCAD data are interpreted in this context as a barometer of policy effectiveness: when non-oil growth accelerates, it is often because governance reforms have created better conditions for entrepreneurship, research and development, and export-oriented activity. The leadership’s strategic communications emphasize the role of policy in shaping a climate that is attractive to global capital and talent, a factor that reinforces Abu Dhabi’s status as a rising economic powerhouse.
Beyond the macro-level policy narrative, the SCAD data also enable a granular view of how policy choices manifest in sector-level outcomes. For instance, the 3 billion dirhams allocated for transport infrastructure is an instrument of policy designed to improve the efficiency of trade and mobility, with direct implications for manufacturing, logistics, and tourism. The 144 new projects across housing, education, tourism, and natural resources reflect a deliberate policy menu intended to raise living standards, expand human capital, and diversify the economy through sectors that offer prolonged growth potential and job creation. In this sense, governance is not merely about rule-making; it is about building an ecosystem where public investments align with private sector capabilities and where the regulatory framework supports a virtuous cycle of growth, innovation, and broad-based prosperity.
The Abu Dhabi leadership’s emphasis on “public-private partnerships” and “multi-dimensional diversification” aligns with a global trend toward more resilient, knowledge-based economies. The overarching objective is to create a sustainable growth model in which capital is deployed strategically to areas with high multipliers, where productivity improvements diffuse across sectors, and where the benefits of growth extend to the broader population. The data indicate that policy actions in 2024 are having measurable effects on the emirate’s economic structure, signaling to investors and residents alike that Abu Dhabi is committed to a transformative development path. The combination of strategic investments, a supportive regulatory climate, and a robust governance framework is the backbone of the emirate’s growth story, helping to translate ambitious plans into tangible outcomes in the real economy.
Global context, resilience, and Abu Dhabi’s growth trajectory
In the face of global economic headwinds, Abu Dhabi’s Q3 2024 performance showcases a level of resilience that distinguishes the emirate from many other economies navigating similar challenges. The 4.5% GDP expansion, driven by a powerful non-oil rebound and a diversified sector mix, demonstrates that Abu Dhabi’s growth engine is not solely reliant on commodity cycles but is anchored in structural capabilities, policy discipline, and strategic capital allocation. This resilience is particularly noteworthy given the broader regional and international context, where some economies grapple with slower growth, inflation dynamics, and uncertain demand patterns. The SCAD data provide a lens through which we can assess Abu Dhabi’s relative position and the sustainability of its growth model. The emirate’s ability to maintain momentum while continuing to advance transformational projects is a sign of stability and long-term strategic thinking that many global investors value.
A significant determinant of resilience is Abu Dhabi’s capacity to adapt its economic structure to shifting global demand. The non-oil share of 54% in Q3 2024 is a powerful indicator that the emirate is succeeding in decoupling growth from direct dependence on hydrocarbons. This structural shift reduces exposure to oil price volatility and enhances the ability to weather external shocks. It also broadens opportunities for investment across manufacturing, logistics, construction, real estate, and services. The sectoral mix—where manufacturing supports value-added production, logistics drives trade and exchange, and finance underpins investment and risk management—creates a diversified growth portfolio that can respond to evolving global conditions. In this sense, Abu Dhabi’s strategy is not a one-off response to current events but a comprehensive plan to build a more sophisticated, high-value economy that can sustain growth even as external conditions fluctuate.
The data also illuminate the role of infrastructure as a strategic enabler of growth. The transport and storage sector’s 18% expansion, underpinned by higher cargo volumes, container handling, and oil logistics, signals that investment in logistics infrastructure directly translates into improved economic performance. This link underscores the importance of connectivity, port efficiency, and intermodal capabilities in expanding the emirate’s trade footprint. The Etihad Rail agreements and the 3 billion dirham transport investment are tangible manifestations of a policy that seeks to optimize the movement of goods and people, reduce logistics costs, and enhance overall competitiveness. A robust transport backbone supports manufacturing output, allows for more dynamic real estate markets, and strengthens Abu Dhabi’s appeal as a destination for both domestic and international business activity. The alignment among policy, infrastructure, and sectoral outcomes creates a strong competitive proposition that positions Abu Dhabi to capture growth opportunities as global economic dynamics evolve.
From a macro perspective, Abu Dhabi’s growth story in 2024 reflects a broader trend of Gulf economies seeking to diversify away from oil dependence while sustaining fiscal strength and investment capacity. The emirate’s achievements illustrate how strategic planning, governance, and investment can translate into durable outcomes—improved productivity, meaningful job creation, and a more resilient economic structure. As global markets navigate uncertainty, Abu Dhabi’s diversified growth model provides a blueprint for how large, resource-rich economies can modernize their industrial bases, integrate advanced sectors, and build a high-value economy capable of weathering fluctuations in global demand and energy prices. For policymakers and international partners, the Q3 results reinforce the importance of consistent, transparent policy frameworks, long-horizon capital planning, and an ecosystem that marries private enterprise with public stewardship to deliver sustainable growth.
Implications for stakeholders and the path forward
The Q3 2024 SCAD release offers a detailed snapshot of a diversified Abu Dhabi economy that is translating policy ambition into measurable gains across multiple sectors. For businesses, the combination of a favorable regulatory environment, an active project pipeline, and robust demand in manufacturing, logistics, and services creates an attractive platform for expansion, investment, and partnership. Companies that can leverage the emirate’s transport networks, industrial clusters, and access to regional markets are well-positioned to benefit from rising non-oil output and the continued roll-out of infrastructure. For financial institutions, the growth in lending and deposits aligned with a more sophisticated, risk-managed economy opens opportunities to deepen client relationships, expand product suites, and participate in a wider range of financing arrangements related to infrastructure and real estate.
For the real estate and construction sectors, sustained demand for high-quality housing and urban development projects supports property markets while reinforcing the need for careful urban planning, sustainable development practices, and resilient project management. Real estate developers, construction firms, and service providers can anticipate continued activity as housing supply aligns with demographic and economic growth, and as tourism and hospitality investments create additional demand for commercial spaces, retail, and related services. The manufacturing sector’s continued leadership within the non-oil domain suggests potential opportunities in advanced manufacturing capabilities, supply chain localization, and technology-driven productivity improvements. Businesses in this space should monitor policy developments, regulatory changes, and talent availability as the emirate expands its industrial base.
For policymakers, the Q3 2024 data strengthens the case for continuing to refine the diversification strategy, maintain regulatory certainty, and accelerate investment in high-priority areas like housing, education, tourism, natural resources, and infrastructure. The government’s ability to translate project approvals into deliverables will be a critical metric of success in the months ahead. Maintaining momentum in PPP arrangements, ensuring efficient procurement, and protecting public interests while delivering value for private participants will be essential to sustaining investor confidence and ensuring that investment translates into broad-based growth and social progress. The emirate’s leadership must also remain attentive to potential risks—such as global demand shifts, supply chain disruptions, and financing conditions—that could influence the pace and distribution of growth. By staying ahead of these risks and continuing to align policy with market signals, Abu Dhabi can maintain a trajectory that reinforces the resilience and diversity of its economy.
Finally, the broader implications for the regional and global economy are meaningful. Abu Dhabi’s experience demonstrates how a resource-rich economy can transition toward a more diversified, knowledge-intensive model, leveraging infrastructure, innovation, and governance to achieve sustained growth. The Q3 2024 results offer a case study in effective diversification, illustrating the value of an integrated approach to policy, investment, and sectoral development. As Abu Dhabi continues to implement its growth blueprint, the emirate stands as a compelling example for other economies seeking to balance resource wealth with long-term productivity, social progress, and global competitiveness. The road ahead will undoubtedly require continued attention to policy coherence, infrastructural scale, workforce development, and the maintenance of a stable, inviting business climate, but the foundations laid by 2024’s Q3 performance suggest a durable capacity to deliver on ambitious objectives and to foster a more inclusive, dynamic economy for years to come.
Conclusion
Abu Dhabi’s Q3 2024 economic performance reflects a carefully orchestrated transition toward a diversified and resilient growth model. The 4.5% GDP increase, powered by a 6.6% surge in the non-oil economy and supported by a sectoral mix spanning transport, finance, construction, real estate, manufacturing, and utilities, demonstrates the emirate’s ability to generate momentum across multiple engines. The non-oil share rising to 54% of GDP signals a successful structural shift that reduces dependence on hydrocarbons and strengthens long-term sustainability. The broad-based gains in key sectors, along with a substantial investment program—144 new projects totaling 66 billion dirhams, plus 3 billion dirhams for transport infrastructure—illustrate a coordinated effort to build a robust infrastructure backbone that supports productivity and growth. The continued attraction of foreign investment, highlighted by the 904.5 billion dirhams recorded in 2023, reinforces Abu Dhabi’s appeal to global capital and its capacity to convert capital into productive assets.
Policy leadership, regulatory modernization, and public-private collaboration are central to this success. The diversification strategy’s multi-dimensional approach—encompassing housing, education, tourism, natural resources, and infrastructure—has translated into tangible outcomes across output, employment, and investment climate indicators. By combining strong governance with strategic investments, Abu Dhabi is creating a resilient economy capable of withstanding external shocks and capitalizing on opportunities in a rapidly evolving global environment. The sectoral dynamics observed in Q3 2024, particularly the dominance of manufacturing, logistics, and financial services, point to a future where productivity gains, innovation, and human capital development drive sustainable growth. As Abu Dhabi continues to implement its plan throughout 2024 and beyond, the ecosystem built around policy coherence, infrastructure depth, and market-friendly reforms will be essential to sustaining momentum, attracting investment, and delivering broad-based prosperity for residents, businesses, and stakeholders across the economy.