Approximately nine months into 2024, Abu Dhabi’s economy marked a standout performance, with quarterly data showing robust expansion driven by the non-oil sector. In Q3 2024, the emirate’s economy grew by 4.5 percent compared with the same period a year earlier, reaching a record high total GDP of 301.8 billion UAE dirhams. This momentum came on the back of a solid non-oil performance, which rose by 6.6 percent year on year, underscoring Abu Dhabi’s ongoing economic diversification and resilience in the face of global headwinds. Even amid a challenging global macroeconomic environment, Abu Dhabi has managed to outpace numerous international forecasts, highlighting the effectiveness of the emirate’s growth strategy and policy framework.
Preliminary data from the Statistics Centre – Abu Dhabi (SCAD) reveals that non-oil activities accounted for 54 percent of the total GDP in Q3 2024, a clear indicator of the economy’s successful shift away from oil dependence and toward a broader, more balanced growth model. This structural shift reflects the emirate’s deliberate strategy to cultivate and expand high-value sectors beyond energy extraction, positioning Abu Dhabi as a diversified, knowledge-driven economy. Looking at the year-to-date performance for the first three quarters of 2024, Abu Dhabi’s GDP expanded by 3.9 percent, with non-oil activities contributing a stronger 5.9 percent increase. Taken together, these figures illustrate sustained momentum in the emirate’s recovery and growth trajectory, supported by targeted investments, regulatory reforms, and strategic public-private initiatives.
Overview of Q3 2024 GDP and the non-oil trajectory
Ahmad Jasim Al Zaabi, the chairman of the Abu Dhabi Department of Economic Development (ADDED), attributed the steady economic performance to a comprehensive, multi-dimensional diversification strategy. He highlighted progressive regulatory frameworks and forward-looking policies that have helped to transform Abu Dhabi into a rising global economic powerhouse. “Abu Dhabi’s soaring Falcon Economy has positioned us as a global magnet for talent, businesses, and investments. Our strong focus on public-private partnerships, alongside significant government investments, is driving growth across high-priority sectors,” Al Zaabi stated. This perspective reflects a broader narrative in which the public and private sectors collaborate to unlock growth opportunities across infrastructure, manufacturing, and services, reinforcing Abu Dhabi’s resilience in a fluctuating global landscape.
During 2024, the Abu Dhabi government approved 144 new projects with a cumulative budget of 66 billion dirhams, a clear signal of sustained public investment aimed at underpinning long-term growth. These projects concentrate on housing, education, tourism, and natural resources, signaling priorities that align with demographic trends, human capital development, and the emirate’s appeal as a business and living environment. In addition, a dedicated allocation of 3 billion dirhams was earmarked for transport infrastructure initiatives, including traffic improvement schemes and international agreements secured by Etihad Rail to bolster connectivity. The emphasis on transport and logistics reflects an understanding that efficient movement of goods and people is central to sustaining growth across all sectors.
In parallel with these public investment efforts, the SCAD officials underscored the role of foreign capital in Abu Dhabi’s growth story. Abdulla Gharib Alqemzi, director general of SCAD, noted the sustained success in attracting foreign investment, which reached 904.5 billion dirhams in 2023. He emphasised that Abu Dhabi’s world-class infrastructure and visionary leadership play a critical role in fostering a dynamic business environment that appeals to both domestic and international investors. The combination of robust public investment, strategic policy direction, and a favorable investment climate helps to explain the observed expansion in multiple sectors during Q3 2024.
In terms of sectoral performance, the transport and storage category led growth in Q3 2024 with an 18 percent increase, contributing 7.1 billion dirhams to the economy. This surge was driven by higher general cargo volumes, gains in container handling, and stronger oil logistics activities, together with increased port revenues. The notable acceleration in transport and storage underscores Abu Dhabi’s evolving role as a regional logistics hub, leveraging port facilities, rail connectivity, and integrated supply chains to support broader economic activity.
The financial and insurance sector also expanded substantially, rising by 11.6 percent and adding 19.5 billion dirhams to the GDP. This growth reflects an uptick in loans and deposits, signaling healthy financial intermediation and capital formation that support business expansion, consumer spending, and investment across sectors. The sector’s strength reinforces Abu Dhabi’s position as a key financial hub in the region, with a concentration of banking, insurance, and related financial services activity contributing to overall macroeconomic resilience.
Construction recorded a 10 percent rise in value-added output, reaching 26.7 billion dirhams. Investments in urban infrastructure—a cornerstone of the emirate’s development agenda—drove this expansion. The construction uptick also aligns with higher demand for housing and public infrastructure to accommodate a growing population and evolving urban landscape. Real estate, meanwhile, grew by 6.1 percent, adding 10.7 billion dirhams to the economy as demand for high-quality property continued to rise. These outcomes illustrate how capital expenditure across urban development and housing markets supports broader economic objectives, including job creation and sustained consumer activity.
Manufacturing remained the largest contributor to the emirate’s non-oil economy, growing by 2 percent and generating 29.4 billion dirhams in Q3 2024. Manufacturing contributed 9.7 percent to the GDP, maintaining its role as a central pillar of Abu Dhabi’s industrial diversification strategy. The sector’s performance signals progress in creating value-added production, expanding local supply chains, and enabling technology transfer and innovation through collaboration between government programs and private enterprise.
In addition, the electricity, gas, and water supply sector added 5 billion dirhams, a 5 percent increase, and contributed 1.8 percent to the GDP. This uptick reflects ongoing efforts to improve utility infrastructure, support industrial activity, and ensure reliable energy and water systems as the emirate scales up its economic output across sectors. Collectively, these sectoral dynamics depict a balanced growth profile in Q3 2024, underpinned by diversified activity, capital investment, and policy-driven development.
Sector-by-sector deep dive: what drove growth and how it shaped the non-oil economy
Transport and storage emerged as the leading growth driver in Q3 2024, underscoring Abu Dhabi’s strategic emphasis on logistics and connectivity. The 18 percent growth rate within this sector translated into a substantial contribution to GDP, with general cargo, container handling, and oil logistics all playing meaningful roles. The related rise in port-related revenues also signals a broader shift toward enhanced trade efficiency and international supply-chain integration. The expansion in transport and storage not only supports immediate GDP growth but also has longer-term implications for trade competitiveness, cost efficiency, and the emirate’s position as a regional logistics gateway. As global supply chains continue to evolve, Abu Dhabi’s investments in ports, rail connectivity, and multimodal transport capabilities are likely to yield compounding benefits for manufacturers, service providers, and exporters operating in or through the emirate.
The financial and insurance sector’s 11.6 percent growth underscores the resilience and depth of Abu Dhabi’s financial system. A higher level of lending activity, deposit growth, and financial intermediation supports corporate financing, consumer credit, and investment in capital projects. This sector’s expansion augurs well for ongoing economic diversification, as finance becomes a facilitator for non-oil growth across manufacturing, construction, real estate, and services. The contribution of financial services to GDP—especially through loans and deposits—also reflects a favorable environment for risk management, investment, and wealth creation, which, in turn, supports job creation and household income growth.
Construction’s 10 percent rise highlights the continued push to upgrade urban infrastructure and housing stock. Investments in urban infrastructure have a direct multiplier effect, raising productivity, improving living standards, and sustaining construction activity across regions. The positive momentum in construction aligns with broader urban development goals and the need to accommodate population growth, enhance transit options, and modernize public amenities. The construction sector’s strength helps create a broad-based improvement in employment, supplier demand, and related services, reinforcing the economy’s capacity to absorb shocks and sustain growth.
Real estate growth of 6.1 percent further reflects demand for high-quality housing and commercial spaces, supported by favorable financing conditions and demographic trends. A strong real estate market can stimulate ancillary industries such as interior fit-out, property management, and professional services; it also broadens the tax base and contributes to urban renewal and economic vitality. The real estate sector’s performance demonstrates consumer and investor confidence in Abu Dhabi’s long-term attractiveness as a place to live, work, and invest, reinforcing the broader diversification strategy through the built environment.
Manufacturing, as the largest contributor to the non-oil economy, grew by 2 percent and generated 29.4 billion dirhams in Q3 2024. The sector’s 9.7 percent share of GDP underscores its central role in Abu Dhabi’s diversification, indicating progress toward higher value-added production, technological upgrading, and more sophisticated supply chains. Manufacturing growth signals the effectiveness of policy measures, industrial clustering, and investment incentives designed to foster innovation, efficiency, and export-oriented production. Electricity, gas, and water supply also contributed meaningfully, with a 5 percent increase and a 1.8 percent GDP share, highlighting the importance of reliable utilities in supporting broader industrial activity and sustainable growth.
Together, these sectoral dynamics illustrate a broad-based pattern of growth in Abu Dhabi’s economy during Q3 2024. The non-oil economy accounted for a significant portion of economic activity, driven by strong contributions from logistics, finance, construction, real estate, manufacturing, and utilities. The data reflect a well-coordinated growth model that leverages public capital, private investment, and policy reforms to expand high-value sectors and reduce reliance on oil revenues. While the numbers point to healthy momentum, they also suggest the need for continued focus on supply-chain efficiency, access to finance for SMEs, urban planning, and the ongoing modernization of industrial capabilities.
Investment activity and infrastructure: the engine behind growth
In 2024, Abu Dhabi’s government demonstrated a robust appetite for investment, approving 144 new projects with a combined budget of 66 billion dirhams. The emphasis across these initiatives fell on housing, education, tourism, and natural resources, signaling a strategic focus on human capital development, quality of life, and sustainable growth. These projects are expected to stimulate construction activity, drive ancillary services, and create employment opportunities across multiple sectors. The allocation of 3 billion dirhams to transport infrastructure initiatives further reinforces the importance placed on mobility, connectivity, and trade facilitation as cornerstones of future economic expansion.
The infrastructure push is complemented by a clear recognition of the role that connectivity plays in attracting investment and enabling business growth. Etihad Rail’s involvement in international agreements and transport projects office is a testament to Abu Dhabi’s ambition to secure deeper regional and global integration. With improved connectivity, the emirate can attract more manufacturing activity, reduce logistics costs, and enhance exports, all of which contribute to a more resilient and diversified economy.
Foreign investment remains a central pillar of Abu Dhabi’s growth narrative. While the 2023 figure of 904.5 billion dirhams highlights a high-water mark for inward investment, it also sets a baseline for ongoing investor confidence. The city’s investment climate—founded on world-class infrastructure, competitive regulatory frameworks, and predictable policy environments—continues to attract capital across sectors. The combination of public investment, private capital, and strategic partnerships helps to sustain momentum in the non-oil economy and supports long-term development goals.
The transport and storage sector’s 18 percent growth and its 7.1 billion dirham contribution to GDP reflect the rapid improvement in logistics capabilities. The high level of cargo activity and container handling, supported by improved port operations and rail connections, has a synergistic effect on other sectors, including manufacturing and trade. Strong port revenues indicate a healthy logistics ecosystem, while general cargo and oil logistics drive additional demand for services, equipment, and human capital. In parallel, the financial and insurance sector’s expansion provides the funding backbone for new projects, while construction, real estate, and manufacturing respond to the higher demand created by these investments.
Policy framework and diversification: driving Abu Dhabi’s long-term growth
A central element of Abu Dhabi’s growth story is the multi-dimensional diversification strategy designed to reduce vulnerability to oil price fluctuations and to accelerate the development of non-oil sectors. This strategy encompasses a broad set of policy tools, including progressive regulatory frameworks, targeted public investments, and mechanisms to attract private capital, such as public-private partnerships (PPPs). The regulatory environment is designed to improve business ease, enhance transparency, and promote competition and innovation across sectors, thereby fostering a more dynamic and resilient economy.
Public-private partnerships are a key instrument in this strategy, enabling collaboration between government bodies and private sector participants to deliver large-scale infrastructure and service projects. This approach supports rapid project delivery, risk-sharing, and access to specialized expertise, all of which are critical to realizing Abu Dhabi’s development ambitions. The emphasis on PPPs, alongside significant government investment, is intended to create a sustainable growth engine that can sustain momentum in high-priority sectors such as logistics, manufacturing, energy systems, and urban development.
The leadership behind these policies emphasizes the emirate’s long-term planning horizon and the willingness to adapt to changing global conditions. By investing in infrastructure, human capital, and innovative industries, Abu Dhabi aims to preserve its competitiveness and attract global talent, businesses, and capital. The emphasis on world-class infrastructure, policy stability, and strategic direction helps to explain the sustained investor confidence and the continued expansion of both oil and non-oil sectors in the local economy.
Etihad Rail’s role in advancing connectivity and regional integration exemplifies the practical application of this policy framework. The international agreements and infrastructure projects tied to rail development demonstrate how transportation networks can unlock broader economic opportunities, including more efficient supply chains, lower logistics costs, and enhanced access to markets. These outcomes not only support immediate GDP growth but also reinforce long-term economic resilience by enabling diversification into areas such as high-value manufacturing, logistics services, and knowledge-based industries.
Outlook, implications, and challenges
The Q3 2024 results underscore Abu Dhabi’s success in maintaining a resilient growth path through diversification and strategic investments. The strong performance of the non-oil economy, led by sectors such as transport and storage, finance, construction, and manufacturing, indicates a broad-based recovery that reduces dependence on hydrocarbons and strengthens the emirate’s economic foundation. The continued emphasis on infrastructure spending, housing and urban development, and human capital development signals a mature understanding that sustainable growth requires ongoing investment in people, capital goods, and institutional capacity.
However, as with any growth story tied to global conditions, Abu Dhabi faces potential challenges that require attentive policy management. Global economic uncertainty, fluctuations in energy prices, and global demand cycles could influence export activity, investment flows, and consumer confidence. The effectiveness of diversification efforts will depend on maintaining a competitive business environment, ensuring financial sector stability, sustaining job creation, and continuing to improve logistics and supply chains. In this context, maintaining robust public investment alongside initiatives to attract private capital and foster innovation will be essential for translating high-level diversification goals into measurable, long-term outcomes.
The data also point to the continued importance of interlinked sectors. The transport and storage sector’s leadership role demonstrates how logistics can act as a catalyst for manufacturing, trade, and services. The financial sector’s growth supports lending for equipment, facilities, and working capital, enabling businesses to scale up. Construction and real estate gains reflect urban development, housing affordability, and investment climate improvements that attract residents and firms. The manufacturing sector’s ongoing contribution indicates progress toward more advanced industrial capabilities, while the utilities sector provides reliable foundations for continued growth across all sectors.
In sum, Abu Dhabi’s Q3 2024 performance highlights a deliberate, cohesive approach to growth that blends macroeconomic stability with targeted sectoral development. The combination of a diversified non-oil economy, substantial investment in infrastructure and human capital, and a policy environment favorable to private sector engagement suggests a promising trajectory for the emirate. As Abu Dhabi continues to execute its diversification strategy, the interplay among transport logistics, finance, construction, manufacturing, real estate, and utilities will shape the path forward, with the potential to deliver sustained, inclusive growth that benefits residents, businesses, and the broader regional economy.
Conclusion
Abu Dhabi’s economy demonstrated notable strength in Q3 2024, with a 4.5 percent year-on-year expansion to a GDP of 301.8 billion dirhams, driven by a 6.6 percent rise in the non-oil economy and a non-oil contribution of 54 percent to GDP. The first three quarters of 2024 showed a 3.9 percent GDP increase, underpinned by a 5.9 percent rise in non-oil activities. The emirate’s growth story is anchored in a multi-faceted diversification strategy, progressive regulatory reforms, and a robust public-private investment approach that has fuelled activity across key sectors. Transport and storage led growth with an 18 percent expansion, while the financial and insurance sector and construction also posted strong performances. Manufacturing remained the largest non-oil contributor, and the utilities sector added to overall momentum.
Public investment in 144 new projects totaling 66 billion dirhams, including a 3 billion dirham allocation for transport infrastructure, underscores a sustained commitment to upgrading the emirate’s foundations for future growth. The attraction of foreign investment—anchored by a 2023 total of 904.5 billion dirhams—and the role of Etihad Rail in bolstering connectivity highlight Abu Dhabi’s ambition to remain a dynamic regional hub for talent, capital, and trade. The combined effect of these investments and sectoral strengths indicates a resilient economy with strong forward-looking prospects, capable of sustaining momentum through ongoing diversification and infrastructure modernization. As Abu Dhabi continues to implement its growth blueprint, the alignment of infrastructure, finance, manufacturing, and urban development will be pivotal in shaping long-term prosperity for the emirate.