Abu Dhabi's Private Sector Grows 35% Over 8 Years, Hits AED338.9 Billion In 2023

Abu Dhabi's private sector reached AED 338.9 billion in 2023, marking a 35% increase from 2016, the country's Department of Economic Development revealed at the second Al Multaqa quarterly meeting.

The Abu Dhabi Department of Economic Development (ADDED) held the meeting in collaboration with the Abu Dhabi Investment Office (ADIO) on Thursday, where the growth of the private sector was discussed.

The meeting aims at strengthening ties with the private sector and family offices, providing updates on the Emirate's economy in 2023 and highlighting future opportunities for the business community.

Al Multaqa Meetings, launched in the fourth quarter of 2023, play an important role in empowering Abu Dhabi's economic growth by providing a platform to exchange dialogues to support investment and the development of new policies.

Chairman of the ADDED Ahmed Jasim Al Zaabi highlighted that the private sector has managed to achieve this strong performance despite global challenges. Abu Dhabi non-oil sectors grew 9.1% during 2023 to AED 610 billion, driven by private sector and family-owned businesses. The non-oil sectors accounted for 53.4% of total real GDP.

"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," he said, WAM reported.

In Abu Dhabi, family-owned businesses make up half of the companies in the construction sector, which saw a 13.1% growth in 2023, reaching over AED 97 billion. They constitute 60% of the finance sector, which increased by 25.5% to AED 79 billion.

Moreover, they represent 80% of the wholesale trade sector, achieving a 7.9% growth to AED 63 billion and 70% of the transportation sector, which rose by 17.1% in the past year.

Al Zaabi noted that the previous meeting 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, analyze challenges, and work together to overcome them. We are organizing these meetings to ensure the exchange of opinions and to benefit from the extensive experiences and knowledge," he added.

During the meeting, Acting Director General of the Statistics Centre - Abu Dhabi Abdulla Gharib Alqemzi presented the economic performance of the Emirate during the past 10 years.

He noted that the non-oil GDP surged by 28.5%, escalating from AED 474.6 billion in 2014 to AED 610 billion in 2023 while total real GDP witnessed a 19% increase, climbing from AED 960.1 billion in 2014 to AED 1.14 trillion in 2023.