Abu Dhabi's Economy Expands 4.5% in Q3, Led by Non-Oil Sector Growth

UAE, 6 January, 2025 : Abu Dhabi’s real GDP grew 4.5% year-on-year in Q3 2024, marking its fastest expansion since Q4 2022, according to Emirates NBD Research. Growth was led by the non-oil sector, which surged 6.6% y/y and 5.9% year-to-date, aligning with a full-year estimate of 6.0% growth.

While OPEC+ oil production curbs restrained oil sector growth, the sector still posted a 2.2% y/y increase in Q3, supported by investments and condensate production outside OPEC+ agreements. Emirates NBD expects oil sector growth to accelerate to 5.0% in 2025.

The transport and storage sector was the fastest-growing in 2024, expanding 18.0% y/y in Q3, driven by a 31.2% rise in passenger numbers at Zayed International Airport and increased cargo throughput at Abu Dhabi ports. The financial services sector also saw rapid growth, up 11.6% y-t-d, as the emirate strengthened its position as a financial hub.

The construction sector, the largest non-oil GDP component, grew 10.0% y/y in Q3, supported by urban infrastructure projects and real estate development. An expansionary budget and major projects like Etihad Rail are expected to sustain growth in 2025.

Emirates NBD forecasts Abu Dhabi’s non-oil GDP to grow 5.5% and overall GDP by 5.3% in 2025, supported by easing interest rates and continued infrastructure investments.