Non-Oil Economy Hits 56% in Abu Dhabi’s Q1 GDP Rise
Abu Dhabi kicked off 2025 with a compelling economic statement: a 3.4% GDP growth in the first quarter, bringing total output to AED291 billion ($79.3 billion), according to the latest data released by The Statistics Centre - Abu Dhabi (SCAD). Driving this performance was the emirate’s steadily expanding non-oil economy, which surged 6.1% year-on-year, contributing AED163.6 billion ($44.5 billion) and marking 56.2% of total GDP—a first for any Q1 reporting period.
The rising influence of non-oil sectors signals Abu Dhabi’s maturing economic model and long-term commitment to diversification, resilience, and knowledge-based development.
Manufacturing: AED28.5B Contribution and 65% Rise in Operational Factories
The manufacturing sector emerged as a front-runner in Abu Dhabi GDP Growth, delivering AED28.5 billion ($7.8 billion) in value and accounting for 9.8% of GDP. With a growth rate of 5% over the previous year, it benefited directly from the emirate’s Industrial Strategy, which turbocharged licensing and operational capacity.
Notably, the number of factories transitioning from construction to production skyrocketed by 65%, and new industrial licences rose 4.7%, reinforcing industrial momentum.
Construction Hits AED27.5B as Real Estate Gains 6.7%, Boosted by AI-Powered Permitting
Construction followed suit with AED27.5 billion ($7.5 billion) in output and a remarkable 10.2% annual growth, reflecting robust investment in housing, infrastructure, and urban planning. Projects were accelerated by tech tools like the Binaa platform, which uses AI to streamline permitting and delivery. Meanwhile, real estate expanded by 6.7%.
Finance and ADGM: AED19.6B Value with 43% Rise in Institutional Registrations
The finance and insurance sector delivered AED19.6 billion ($5.3 billion), growing 9.1% year-on-year. Much of this came from Abu Dhabi’s rising clout as a regional and international financial hub.
ADGM, Abu Dhabi’s financial free zone, saw a 43% spike in registered institutions and a 33% increase in assets under management, while the Abu Dhabi Securities Exchange (ADX) achieved AED2.93 trillion ($797 billion) in market capitalization. Foreign net investment surged 151% to AED8.5 billion ($2.3 billion), boosting liquidity and global confidence.
Trade and Transport: AED16B and 7.5% Expansion Reflecting Global Integration
Wholesale and retail trade grew by 3.6%, contributing AED16 billion ($4.4 billion) and 5.5% to GDP, while transport and storage posted a 7.5% increase, indicating strengthening logistics and regional connectivity. These gains highlight Abu Dhabi's success in expanding global trade relations and positioning itself as a strategic logistics hub.
Services Sector: Health, Culture, and Knowledge-Based Growth
The arts and entertainment sector grew 8.4%, professional services expanded 10.3%, and healthcare rose 5.2%, all aligned with a fast-growing population that reached 4.14 million in 2024. These sectors collectively point to a more vibrant, inclusive economy grounded in public well-being and cultural capital.
Digital Strategy and Population Boom Set Stage for AI-Driven Transformation
Abu Dhabi’s AED13 billion ($3.5 billion) Digital Strategy (2025–2027) aims to automate every government service by 2027, positioning the emirate as the world’s first fully AI-native government. This transition is expected to amplify productivity, reduce bureaucracy, and unlock new data-driven opportunities—further catalyzing Abu Dhabi GDP Growth.
With population up from 3.8 million in 2023, demand for housing, services, and jobs is intensifying. The government’s ability to adapt through digital governance and diversified economic planning is shaping a model for sustainable urban growth.
Table Summary: Abu Dhabi Annual Percentage Change in Quarterly GDP (Q1 2025)
Sector / Activity | % Change (Q1 2025) |
Agriculture, forestry and fishing | 0.4% |
Mining and quarrying (includes crude oil and natural gas) | 0.2% |
Manufacturing | 5.0% |
Electricity, gas, and water supply; waste management | 2.5% |
Construction | 10.2% |
Wholesale and retail trade; repair of motor vehicles and motorcycles | 3.6% |
Transportation and storage | 7.5% |
Accommodation and food services | 2.1% |
Information and communication | 3.9% |
Financial and insurance | 9.1% |
Real estate | 6.7% |
Professional, scientific and technical & administrative and support services | 10.3% |
Public administration and defence; compulsory social security | 3.1% |
Education | 1.9% |
Human health and social work | 5.2% |
Arts, recreation and other services | 8.4% |
Activities of households as employers | 4.2% |
Total GDP | 3.4% |
Total Non-Oil GDP | 6.1% |
Source: Statistics Centre – Abu Dhabi
IMF Forecasts 4.2% Growth in 2025, Accelerating to 5.8% in 2026
According to the International Monetary Fund, Abu Dhabi GDP Growth is set to climb 4.2% in 2025, outpacing the UAE’s average of 4%, and accelerate to 5.8% in 2026. These projections validate the emirate’s diversified economic strategy and its readiness to lead in sectors beyond oil.
