The non-oil share of Abu Dhabi’s economy gained ground last year, with real estate leading the charge, according to the latest government data.
Statistical Centre Abu Dhabi (Scad) said its annual economic surveys showed that the non-oil sector last year accounted for slightly more than half the emirate’s economy at 50.2 per cent of GDP, with sectors including real estate and financial services accounting for an outsized share of the 4.4 per cent growth of inflation-adjusted GDP, to Dh734 billion.
“In real terms, non-oil activities accounted for 50.2 per cent of the GDP at constant prices in 2014,” Scad said. “These figures attest to the progress made in implementing the emirate’s plans for expansion of the economic base and diversification of the economy.”
The Scad report said real estate activity accounted for the largest share at 20.7 per cent of gross fixed capital formation in 2014, with the sector having grown by more than 22 per cent during the year.
The financial and insurance sector was second with growth last year of nearly 20 per cent.
There have been mixed signals about Abu Dhabi’s real estate market this year, but indications from the Urban Planning Council and from private sector real estate sources suggest that demand will continue to run ahead of additional supply as the workforce in the capital continues to expand.
The oil sector fell significantly last year and will have continued to decline at a sharper rate this year.
Scad reports that crude oil and natural gas production’s “added value” last year was Dh489bn before adjusting for inflation, down from Dh511bn the year before.
Scad said oil and natural gas’s share of GDP shrank to 49.8 per cent after adjusting for inflation.
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