Abu Dhabi’s Economy Flourishes with Non-Oil Sector Growth
Abu Dhabi has experienced a substantial economic expansion, particularly in its non-oil sector, which surged by 9.1%, with its GDP exceeding $310 billion.
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This surge has been highlighted in the latest data from the Statistics Centre – Abu Dhabi (SCAD), which shows a 9.1% increase in the non-oil economy and a 3.1% increase in Abu Dhabi‘s real GDP in 2023 compared to the previous year.
The economy has shown resilience and capacity for growth, particularly in construction, finance and insurance, and transportation and storage sectors, which together contributed over 53% to the total GDP.
Strategic Economic Diversification and Growth
In the last quarter of 2023, the economy expanded by 4.1% from the previous year, propelled by a 10.4% growth in the non-oil sectors. Abu Dhabi’s economic strategies for diversification, which focus on industrial, financial, and tourism sectors, along with foreign investment and job creation, have been key to this growth.
The non-oil economy growth rates for 2023 and 2022 were 9.1% and 9.2%, respectively. The GDP for 2023 reached a ten-year high of AED1.14 trillion ($310.4 billion), reflecting the success of Abu Dhabi’s strategic policies towards diversification, innovation, and entrepreneurship, despite global economic fluctuations.
Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), highlighted the success of Abu Dhabi’s economic policies, noting the emirate’s significant growth in non-oil sectors and real GDP in 2023, marking it as a leader in the MENA region for economic innovation and investment attraction. The “Economic Diversification 2.0” strategy aims to build on this success, focusing on smart, inclusive, and sustainable development, leveraging technology and innovation to foster growth and global expansion.
Abdulla Gharib Alqemzi, Acting Director-General of SCAD, emphasized Abu Dhabi’s strategic progress towards diversification and innovation, noting the non-oil sector’s contribution to over 53% of the GDP. Incentive policies have played a crucial role in attracting talent, entrepreneurs, and investors, contributing to the emirate’s global economic standing.
The statistics also show significant growth in specific sectors, with construction seeing a 13.1% increase in 2023, and manufacturing, financial and insurance activities also recording substantial growths. These sectors have contributed significantly to the GDP, reflecting international confidence in Abu Dhabi’s economy.
Other sectors such as wholesale and retail trade, transportation and storage, health and education, information and communication, real estate, arts and recreation, and accommodation and food services also saw notable growth in 2023, further showcasing Abu Dhabi’s appeal as a global business hub and event destination.
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Total income was higher by 10% year-on-year (YoY) at AED 300 million in the six-month period
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United Arab Bank PJSC (UAB or “the Bank”) has announced its financial results for the six months ended 30th June 2024. UAB reported a net profit before tax of AED 152 million for H1 2024, a 26% increase compared to AED 121 million for H1 2023. The net profit after tax for H1 2024 stood at AED 139 million, up 15% from AED 121 million in the same period last year. Earnings per share rose to AED 0.07 in H1 2024 from AED 0.06 in H1 2023.
Total income increased by 10% year-on-year to AED 300 million for H1 2024, compared to AED 273 million for H1 2023, driven by a 26% increase in net interest income. The Bank’s capital position remains strong with a CET1 ratio of 13% and a total capital adequacy ratio (CAR) of 18%.
UAB‘s liquidity profile is robust, with advances to stable resources ratio of 75% and an eligible liquid asset ratio of 19%, both comfortably above regulatory thresholds. The Bank’s credit ratings were affirmed by Fitch and Moody’s at BBB+/Ba1, with stable and positive outlooks respectively.
UAB’s performance in the first half of 2024 demonstrates significant growth in total assets, increasing by 12% compared to December 2023, and reflects a strategic focus on quality and farsighted risk management. These results indicate that the Bank is well-positioned to continue its growth trajectory.
Commenting on the Bank’s performance, H.H. Sheikh Mohammed bin Faisal bin Sultan Al Qassimi, Chairman of the Board of Directors of United Arab Bank, said: “UAB’s strong performance in the first half of 2024 reflects the successful implementation of our growth strategy and reinforces our commitment to delivering sustainable value to our shareholders. We are confident that our prudent business model shall continue to deliver a solid performance and deal with the opportunities and challenges that will present themselves.”
He added: “As we move ahead into the second half of the year, we remain committed to enhancing our customers’ banking experience and contributing to the growth and prosperity of the UAE’s economy.
Shirish Bhide, Chief Executive Officer of United Arab Bank, commented: Our customer-centric approach and sustainable growth model has led to a 15% increase in net profit and a 12% growth in total assets. Our positive performance is a testament to the successful execution of our strategic priorities and clear evidence of the success of the many initiatives that have been implemented at the Bank. Going forward, we will continue investing in our growth strategy and digital capabilities, while equally focusing on developing innovative products and services that meet our customers aspirations whilst upholding the highest standards of compliance and internal controls.”
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
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