Abu Dhabi’s Economy Expands 3.8% in Q2 2025 as Non-Oil Sectors Drive Record Growth
<p>Abu Dhabi’s economy continues to show strong momentum, with new data confirming that the emirate is accelerating its diversification journey away from oil dependency. According to the <strong>Statistics Centre – Abu Dhabi (SCAD)</strong>, the emirate’s <strong>real GDP grew by 3.8% year-on-year in Q2 2025</strong>, reaching <strong>Dh306.3 billion</strong>.</p><p>The real standout, however, was the <strong>non-oil economy</strong>, which expanded by <strong>6.6%</strong> compared to the same period last year, reaching <strong>Dh174.1 billion</strong>—the highest quarterly value on record. For the first time in a second quarter, non-oil activities made up <strong>56.8% of total GDP</strong>, underscoring the emirate’s success in building a future-ready and resilient economy.</p><h3>Strong First-Half Performance</h3><p>Looking at the first six months of 2025 as a whole, Abu Dhabi recorded a <strong>real GDP of Dh597.4 billion</strong>, marking a 3.63% increase over H1 2024. Non-oil sectors contributed <strong>Dh337.6 billion</strong>, growing at a robust <strong>6.37% year-on-year</strong>.</p><p>Officials emphasized that the results reflect both resilience and vision. <strong>Ahmed Jasim Al Zaabi</strong>, Chairman of the Abu Dhabi Department of Economic Development (ADDED), attributed the gains to the emirate’s long-term strategy of competitiveness, innovation, and inclusivity.</p><p>“Our non-oil sectors, which achieved 6.6% growth in Q2 2025, are led by manufacturing, construction, finance, real estate, and ICT,” Al Zaabi said. “Abu Dhabi’s ‘Falcon Economy’ is building a globally competitive model driven by innovation and inclusive growth.”</p><h3>Manufacturing and Construction Power Growth</h3><p>The <strong>manufacturing sector</strong> reached its highest value yet, supported by the <strong>Abu Dhabi Industrial Strategy</strong>, which focuses on advanced technologies, supply chain resilience, and industrial investments. This sector’s performance reinforced Abu Dhabi’s ambition to become a leading hub for manufacturing in the Middle East.</p><p><strong>Construction</strong> surged nearly <strong>10%</strong>, fueled by mega projects, population growth, and the introduction of digital platforms such as <strong>Binaa</strong>, which streamline permits and approvals. The boom reflects not only infrastructure expansion but also new housing and commercial demand, spurred by rising foreign investment and tourism.</p><h3>Finance, Real Estate, and ICT Surge</h3><p>The <strong>financial sector</strong> posted gains of more than <strong>10%</strong>, with the Abu Dhabi Global Market (ADGM) driving expansion in assets under management and new business registrations. Capital markets also saw a sharp rise in trading and foreign inflows, signaling strong investor confidence in the emirate’s economic stability.</p><p><strong>Real estate</strong> continued its strong upward trend with a <strong>10% growth rate</strong>, supported by a rising population, foreign buyers, and continued reforms allowing expatriates to invest more freely.</p><p>Meanwhile, the <strong>ICT sector</strong> achieved its highest-ever quarterly value, bolstered by Abu Dhabi’s <strong>Dh13 billion Digital Strategy</strong>. This plan, which aims to transform the emirate into the world’s first AI-native government by 2027, is driving demand for advanced digital infrastructure, data centers, and cybersecurity.</p><h3>Broad-Based Expansion</h3><p>Other sectors also contributed to the upward momentum:</p><p><strong>Wholesale and retail trade</strong> rose modestly, benefiting from increased tourism and a <strong>64% jump in non-oil exports</strong>.</p><p><strong>Utilities</strong> recorded the fastest growth, supported by investments in renewable energy and grid infrastructure.</p><p><strong>Professional services and transport</strong> posted steady gains, reflecting higher business activity and logistics demand.</p><p>The <strong>cultural and creative industries</strong> continued their recovery, with the arts and recreation segment growing by <strong>12%</strong>, boosted by festivals, events, and rising cultural tourism.</p><h3>Data-Driven Policy and Future Outlook</h3><p><strong>Abdulla Gharib Alqemzi</strong>, Director-General of SCAD, highlighted that the results illustrate not just growth, but also the effectiveness of <strong>data-informed policymaking</strong>.</p><p>“As the government advances its Dh13 billion digital strategy to become the world’s first AI-native government by 2027, SCAD is central to this transition by providing high-quality, integrated statistics that support inclusive and innovation-led development,” Alqemzi said.</p><p>The strong first-half performance suggests that Abu Dhabi is on track to exceed its growth targets for the year. With oil markets remaining volatile, the emirate’s increasing reliance on non-oil sectors offers stability, resilience, and new opportunities for investors.</p><h3>Non-Oil as the New Core</h3><p>Abu Dhabi’s Q2 2025 results reaffirm a fundamental shift: <strong>non-oil sectors are no longer supplementary—they are central to growth</strong>. With strong contributions from manufacturing, construction, finance, real estate, and ICT, the emirate continues to position itself as a <strong>diversified, innovation-driven economy</strong>.</p><p>This performance cements Abu Dhabi’s status as a leading regional hub for business, investment, and technology, with long-term strategies ensuring that growth is sustainable, inclusive, and resilient against global economic shocks.</p><p>As Al Zaabi noted, the emirate’s “Falcon Economy” is now spreading its wings, soaring higher on the strength of non-oil diversification.</p>