Abu Dhabi Q2 GDP Hits AED306B, Non-Oil Sectors Lead Growth

Abu Dhabi’s economy continued its strong momentum in the second quarter of 2025, with the emirate’s real GDP reaching AED306.3 billion, marking a 3.8 per cent rise compared to the same period last year. Notably, the non-oil sector surged by 6.6 per cent to AED174.1 billion, representing 56.8 per cent of the total GDP for the first time in a Q2 period.

The first half of 2025 reflected a consistent growth trajectory, with overall GDP touching AED597.4 billion, up 3.63 per cent year-on-year. Non-oil activities, which expanded 6.37 per cent to AED337.6 billion, were the primary driver of this robust performance, underscoring the success of Abu Dhabi’s diversification strategy.

Manufacturing and Construction Drive Non-Oil Growth

The manufacturing sector remained the top contributor to non-oil GDP, hitting AED30.1 billion with a 3.1 per cent increase, setting a new quarterly record. The rise highlights the impact of the Abu Dhabi Industrial Strategy, which has boosted industrial GDP by 23 per cent since 2022 and increased the number of industrial enterprises by nearly 20 per cent.

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Construction activities mirrored this growth, rising 9.7 per cent to AED30 billion. Major infrastructure and housing projects, alongside technological innovations such as the AI-powered Binaa platform, which cuts building permit times by up to 70 per cent, have strengthened the sector’s performance.

Finance, Real Estate, and ICT See Record Growth

Finance and insurance activities expanded 10.3 per cent to AED21.8 billion, reflecting Abu Dhabi’s growing role as a regional and global financial hub. Real estate also recorded its highest quarterly performance at AED11.7 billion, up 10.2 per cent, driven by population growth and foreign investor interest.

The information and communications sector continued to accelerate, growing 6 per cent to AED8.6 billion, supported by Abu Dhabi’s AED13 billion digital strategy. This initiative aims to automate government services and deploy over 200 AI solutions, demonstrating the link between technology and economic expansion.

Steady Expansion Across Key Sectors

Other sectors, including wholesale and retail trade, professional services, transportation, and utilities, contributed to a balanced growth pattern. Notably, electricity, gas, and water supply rose 12.5 per cent, while arts and recreation grew 12 per cent, highlighting diverse drivers of economic resilience.

A Future-Ready Economy

Abu Dhabi’s Q2 results illustrate a stable and forward-looking economy. The sustained expansion of non-oil sectors, backed by strategic investments, robust infrastructure, and innovation-focused policies, positions the emirate for continued economic diversification and long-term growth.