UPDATE 1-Abu Dhabi’s GDP grew estimated 4.1% in second quarter

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ABU DHABI, Oct 1 (Reuters) – Abu Dhabi’s economy grew 4.1% in the second quarter of 2024, according to preliminary government estimates, driven by non-oil sectors as the city-state accelerates efforts to diversify away from hydrocarbons.

The United Arab Emirates capital’s gross domestic product (GDP) in Q2 reached 297 billion dirhams ($80.87 billion), according to the government statistics centre, and the contribution of non-oil sectors stood at over 55%, the highest in about 10 years, at 164.2 billion dirhams.

Non-oil GDP surged 6.6% in Q2, vastly outperforming overall GDP growth, led by increases in construction, manufacturing, and finance and insurance activities.

“The continued strong performance of our economy over the past years is a testament to its resilience and agility in responding positively…to mega shifts in the global economy as we are accelerating the transition to diversified, smart, and sustainable economy,” Ahmed Jasim Al Zaabi, chairman of Abu Dhabi’s economic development department, said in a statement.

Abu Dhabi’s economy grew 3.7% in the first half of the year compared to the prior year period.

The emirate, which holds more than 90% of the UAE’s oil reserves, is leaning on its vast wealth and sovereign funds to boost non-oil growth, develop national champions and attract foreign investment. ($1 = 3.6726 UAE dirham) (Reporting by Jana Choukeir and Rachna Uppal, Editing by David Goodman and Ed Osmond)

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