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Abu Dhabi’s private sector sees 35% growth over 8 years

The increase, spurred largely by family owned businesses, reached $92.34 billion in 2023.

Abu Dhabi’s private sector sees 35% growth over 8 years
[Source photo: Krishna Prasad/Fast Company Middle East]

Al Multaqa Meetings, a collaboration between the Abu Dhabi Department of Economic Development (ADDED) and the Abu Dhabi Investment Office (ADIO), launched in Q4 2023, has begun discussions on Abu Dhabi’s private sector and economic growth for Q1 2024.

In 2023, the emirate’s private sector grew strongly, amassing $92.2 billion, marking a 35% increase compared to 2016. Supported by the private sector and family-owned businesses, Abu Dhabi’s non-oil sectors experienced a significant growth of 9.1% during 2023, reaching $166 billion and contributing 53.4% of the total real GDP.

Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), said, “The importance of our collaborative efforts is reflected in Abu Dhabi’s growth indicators. Remarkably, we achieved this strong performance despite global challenges, reflecting the strength and resilience of our ‘Falcon Economy’ and its ability to soar to new heights.”

“Backed by decades-long experience, the private sector and family-owned businesses in Abu Dhabi continue to contribute to economic diversification as evidenced by their share in the highest growing non-oil sectors.”

Family-owned businesses in Abu Dhabi represent 50% of companies in the construction sector, marking a 13.1% increase in 2023 compared to 2022. Similarly, family-owned businesses comprise 60% of the finance sector, experiencing a notable rise of 25.5%. They also constitute 80% of the wholesale trade sector, which grew by 7.9%, and the transportation sector, consisting of 70% family-owned businesses, witnessed a significant increase of 17.1%.

“In our first meeting, we underlined the crucial role that family offices and the private sector play in Abu Dhabi and the UAE’s success. Today, I reiterate the importance of discussing promising opportunities, analyzing challenges, and working together to overcome them,” added Al Zaabi.

During the meeting, Abdulla Gharib Alqemzi, Acting Director General of the Statistics Centre in Abu Dhabi, delivered a presentation on the economic performance of the emirate over the past 10 years. The presentation highlighted a 28.5% growth in non-oil GDP, increasing from $129 billion in 2014 to $166 billion in 2023. Similarly, the emirate experienced a 19% jump in total real GDP, rising from $261.4 billion in 2014 to $310.4 billion in 2023.

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