Abu Dhabi’s GDP grew 3.4% y-o-y in 1Q 2025 to reach AED 291 bn, compared to a 3.3% uptick in the same period last year, according to data from the Abu Dhabi Statistics Center. The non-oil economy grew 6.1% y-o-y to AED 163.6 bn, accounting for 56.2% of total GDP and marking an all-time high for 1Q results. Meanwhile, the oil sector’s share contributed AED 127.4 bn.

ICYMI- Abu Dhabi’s economy expanded by 3.8% last year to reach an all-time high of AED 1.2 tn, with the manufacturing and construction sectors leading the results.

By the sector: Once again, the manufacturing sector led non-oil growth with AED 28.5 bn in value added during the quarter, representing 9.8% of total GDP and showing 5% y-o-y growth on the back of new industrial licenses and more developed production stages. The construction sector followed in a close second, with a 10.2% growth bringing it to AED 27.5 bn.

Also recording growth was the financial and ins. sector, which was valued at AED 19.6 bn after expanding 9.1% y-o-y, bolstered by a 43% rise in registered financial institutions in the ADGM. Wholesale and retail trade expanded 3.6% to AED 16 bn, while professional services grew 10.3%, arts and entertainment grew 8.4%, transportation was up 7.5%, real estate by 6.7%, and healthcare expanded 5.2%.

Projections for the year ahead: Fitch sees Abu Dhabi’s GDP growing 6.3% in 2025 and 4% for 2026, while the IMF sees Abu Dhabi’s economy growing at a faster pace than Dubai’s this year, projecting 4.2% growth for the former and 3.3% for the latter.

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