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Abu Dhabi’s GDP grew 3.8% y-o-y to AED 306.3 bn in 2Q 2025, boosted by expansion in the non-oil economy, which grew 6.6% y-o-y to hit a record AED 174.1 bn, according to a statement from Abu Dhabi Media Office. This puts the non-oil economy’ share of the GDP at 56.8% for the first time, while the oil sector contributed AED 132.2 bn.
The robust performance in 2Q was expected: Preliminary data from the Abu Dhabi Investment Office expected GDP to grow 3-4% y-o-y during the quarter, fueled by strong growth in the non-oil sector. Abu Dhabi’s economy had expanded by 3.4% y-o-y in 1Q 2025 to AED 291 bn. Last year, GDP grew 3.8% 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 30.1 bn in value added during the quarter, representing 9.8% of total GDP and showing 3.1% y-o-y growth, achieving its all-time high quarterly value. This uptick was attributed to an increase in new industrial licenses, a 19.4% rise in the number of industrial enterprises and large investments in advanced industries.
The construction sector followed in a close second, with a 9.7% growth bringing it to AED 30 bn, contributing 9.8% of the total GDP. Major infrastructure and housing initiatives led the sector’s growth.
Also posting growth was the financial and ins. sector, which inched up 10.3% to a hit AED 21.8 bn, contributing 7.1% of GDP. The wholesale and retail trade sector grew 1.6% to hit AED 16 bn, representing 5.2% of GDP, while professional services grew 10%, arts and entertainment grew 12%, transportation was up 7.5%, real estate by 10.2%, and healthcare expanded 5.2%.
This puts growth in 1H 2025 at 3.63% y-o-y, with GDP reaching AED 597.4 bn, and non-oil GDP up 6.37% y-o-y to hit AED 337.6 bn.
The outlook is promising: Fitch sees Abu Dhabi’s GDP growing 6.3% in 2025 and 4% in 2026, while the IMF sees the capital’s economic growth (4.2%) outpacing Dubai’s (3.3%) this year.
The bigger picture: The Central Bank of the UAE (CBUAE) upgraded in September its real GDP forecast to 4.9% in 2025, up from a 4.4% projection in June, on the back of momentum in the non-oil sector and higher oil production. Growth is forecast to grow 5.3% in 2026 — slightly below the 5.4% projected earlier. The CBUAE’s projection is broadly in line with Standard Chartered’s 5% forecast for 2025, but above Fitch Solutions’ BMI (4.3%), and the IMF (4%). Further ahead, Standard Chartered expects growth to moderate to 4% in the following two years.
