Abu Dhabi, UAE – The economy of Abu Dhabi continued its robust expansion in 2024, registering 3.8% annual GDP growth and reaching an all-time high of AED 1.2 trillion ($326 billion). The non-oil sector remained the main driver of this growth, recording 6.2% expansion and contributing 54.7% to the total GDP, setting a new record for the emirate’s diversification efforts. These achievements highlight Abu Dhabi’s progress in reducing its reliance on oil revenues and reinforcing its position as a global economic powerhouse.
As the capital of the United Arab Emirates (UAE), Abu Dhabi’s economic success reflects the nation’s broader development strategy. The UAE has emerged as a leading financial, trade, and industrial hub, attracting foreign investments, fostering innovation, and implementing policies that create a business-friendly environment. With a focus on sustainable growth, digital transformation, and industrial advancement, the UAE continues to strengthen its position as one of the fastest-growing economies in the world.
Manufacturing Industry Expands Amid Diversification Efforts
Abu Dhabi’s manufacturing sector maintained steady growth, expanding by 2.7% in 2024 and contributing AED 111.6 billion ($30.4 billion) to the emirate’s GDP. The sector accounts for 9.5% of the total economy, supported by the Abu Dhabi Industrial Strategy (ADIS), which has promoted industrial automation, technological advancements, and sustainable production methods.
Manufacturing has become a crucial pillar of the UAE’s non-oil economy, with the country focusing on high-tech industries, aerospace, defense, and pharmaceuticals. Government initiatives have encouraged local production and export-oriented industries, positioning the UAE as a leading player in advanced manufacturing and industrial innovation. The UAE’s strategic location has further strengthened its role as a global trade hub, facilitating efficient supply chain networks and industrial growth.
Construction Sector Achieves Record-High Growth
The construction industry in Abu Dhabi recorded the highest growth among all major sectors, expanding by 11.3% in 2024 to reach AED 107.4 billion ($29.2 billion). The sector’s contribution to GDP increased to 9.1%, driven by large-scale infrastructure projects, smart city developments, and real estate expansions.
Across the UAE, construction remains a vital sector, with major projects in Dubai, Sharjah, and other emirates contributing to nationwide development. The UAE is known for its world-class infrastructure, iconic skyscrapers, and sustainable urban planning. Projects such as Saadiyat Island, Yas Island, and Masdar City in Abu Dhabi highlight the country’s commitment to creating modern, sustainable, and technologically advanced cities. These initiatives attract international investors and businesses, strengthening the UAE’s status as a global economic hub.
Financial and Insurance Sector Strengthens UAE’s Global Competitiveness
Abu Dhabi’s financial and insurance sector recorded 10.7% growth in 2024, reaching AED 77.8 billion ($21.2 billion) in GDP contribution. The sector’s continued expansion has reinforced the UAE’s position as a key financial center in the Middle East.
The UAE’s banking and finance sector has seen remarkable growth, with Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) emerging as major financial hubs. These financial centers have attracted global asset managers, fintech startups, and multinational investment firms, further strengthening the UAE’s global financial reputation. Government-backed policies supporting digital banking, blockchain technology, and sustainable finance have positioned the UAE as a leader in financial innovation.
Wholesale and Retail Trade Sector Benefits from Tourism and Consumer Demand
The wholesale and retail trade sector in Abu Dhabi reached a record AED 62.7 billion ($17 billion) in 2024, growing by 2.2% year-on-year. The sector’s strong performance was fueled by rising consumer spending, increased tourism, and the expansion of digital retail platforms.
The UAE is home to some of the world’s largest shopping malls, luxury retail centers, and thriving e-commerce businesses. Shopping festivals and major events such as the Dubai Shopping Festival and Abu Dhabi Retail Week continue to boost sales and attract global visitors. The UAE’s retail industry has successfully transitioned into the digital age, with an increasing number of businesses integrating e-commerce, AI-driven customer experiences, and cashless payment solutions.
Transportation and Logistics Play a Key Role in UAE’s Trade Growth
Abu Dhabi’s transportation and logistics sector recorded the highest growth rate of any industry, surging by 16.9% in 2024 and reaching a total GDP contribution of AED 27.8 billion ($7.6 billion). The UAE’s strategic investments in transportation infrastructure have made it one of the most connected trade hubs in the world.
The UAE is home to some of the world’s busiest airports, advanced seaports, and an extensive logistics network. Khalifa Port in Abu Dhabi and Jebel Ali Port in Dubai continue to be major drivers of regional and international trade. The expansion of Etihad Rail has further strengthened transportation capabilities, providing efficient cargo and passenger transport across the UAE. These developments are crucial in supporting the UAE’s ambition to become a global leader in trade, logistics, and supply chain management.
Real Estate Sector Continues Upward Trend
The real estate sector in Abu Dhabi grew by 4.2% in 2024, reaching AED 41.7 billion ($11.4 billion). The UAE’s property market remains one of the most attractive in the world, with both residential and commercial real estate continuing to see high demand from investors.
Government initiatives, including golden visas for investors and long-term residency programs, have further enhanced the UAE’s property market. Luxury developments, waterfront communities, and business hubs continue to attract high-net-worth individuals, multinational companies, and expatriates seeking investment opportunities in the UAE.
Fourth Quarter Performance and UAE’s Economic Future
In the final quarter of 2024, Abu Dhabi’s GDP expanded by 4.4%, while the non-oil economy grew by 6.6%. These figures reflect the UAE’s strong and stable economic outlook. The country has also witnessed a 300% increase in foreign direct investment (FDI) over the last decade, driven by pro-business policies, economic free zones, and global partnerships.
The UAE’s leadership remains committed to innovation, sustainability, and economic diversification. The government’s focus on green energy, smart technology, and industrial transformation is expected to drive further economic expansion in the coming years. The UAE continues to strengthen its ties with international markets, attracting top global enterprises and fostering entrepreneurship.
UAE’s Position as a Global Economic Leader
Abu Dhabi’s economic success is a reflection of the UAE’s broader vision to establish itself as a global economic powerhouse. The emirate’s record-breaking GDP growth, strong sectoral performance, and investor-friendly environment highlight the country’s resilience and long-term stability.
The UAE’s ability to adapt to global trends, embrace technological advancements, and foster a highly competitive business environment has made it a preferred destination for investors, entrepreneurs, and professionals from around the world. With ongoing developments in infrastructure, digital transformation, and economic diversification, the UAE is poised to remain at the forefront of global economic growth in the years ahead.
