Abu Dhabi Department of Economic Development (DED) on Saturday said Abu Dhabi’s gross domestic product reached Dh209 billion in the third quarter of 2015 at current prices and roughly Dh200 billion at fixed prices of 2007.
The figure marks a 5.5 per cent increase over the Dh189.6bn recorded in the third quarter of 2014 (at constant prices), it said.
"Estimates by the Statistics Centre-Abu Dhabi, SCAD for the third quarter of 2015 have shown that Abu Dhabi’s GDP amounted to Dh209bn at current prices and roughly Dh200bn at constant prices. The emirate’s GDP at constant prices rose from Dh189.6bn during the same period of 2014 to Dh200bn during the third quarter of 2015, registering a positive growth rate of 5.5 per cent", the DED said in a press release.
Citing the SCAD estimates, the report shows that non-oil activities contributed to a growth rate of 11.8 per cent in the emirate’s GDP at current prices, and a 7.1 per cent increase at constant prices during the third quarter of 2015 compared to the same quarter in 2014.
The contribution of non-oil activities and sectors to the GDP at current prices amounted to 63.5 per cent during the first quarter of 2015, but then dropped to 61 per cent during Q2 2015, and rose again to 65 per cent during the third quarter of 2015.
SCAD's estimates of the emirate’s GDP were consistent with the economic forecasts announced by DED last December, said Khalifa Salim Al Mansouri, Acting Undersecretary of the Abu Dhabi Department of Economic Development, DED.
Estimates for the third quarter of 2015 give grounds for optimism on the outcome of the emirate's government policy which is aimed at strengthening the contribution of non-oil sectors to GDP, Al Mansouri said.
The DED said that the value added at current prices for non-oil activities in Abu Dhabi amounted to Dh135,753bn during the third quarter of 2015.
The value added at constant prices for non-oil activities in the emirate rose by 7.1 per cent during the quarter, while the value added at constant prices for oil activities increased by 3.9 per cent during the same period.
The quarterly GDP measures the value of goods and services produced by the economy during that quarter of the year minus the value of production requirements of goods and services used in the production during the same quarter.
Al Mansouri asserted that SCAD estimates of Abu Dhabi’s GDP for the third quarter of 2015 also included a number of macro-economic and sectoral indicators for the emirate’s economy, reflecting their positive results and the ongoing efforts of the emirate of Abu Dhabi to contain the economic consequences of regional and international economic developments due to declines and fluctuations in global oil prices.
He further added that the emirate of Abu Dhabi is endowed with a rich variety of features including high-quality infrastructure, which the emirate strives to develop continuously. He also pointed out the enhanced capacities of the emirate in terms of transformation into a knowledge-based economy, in addition to the sustainability of the financial sector and the enhanced competitiveness of the business environment.
This, he noted, has enabled the emirate to transform the challenges associated with the regional and global developments into opportunities to pursue efforts related to economic diversification, in such a way as to achieve the goals of the Abu Dhabi Economic Vision 2030.
Al Mansouri further explained that the performance indicators of numerous sectors in the emirate of Abu Dhabi, such as banking, tourism, real estate, foreign trade, etc. posted good results for the period January-September 2015. This comes as a complement to the good GDP growth rates registered by the emirate’s economy in 2014, especially for non-oil sectors, which resulted in their increased contribution to the GDP until the third quarter last year, he said.
Furthermore, Al Mansouri noted that Abu Dhabi government works to strengthen the contribution of non-oil sectors to GDP. "This, in and of itself, translates into reality the goals and objectives of the Abu Dhabi Economic Vision 2030," he said.
Al Mansouri further said that the continuous rise in the GDP growth rates of non-oil sectors, according to the SCAD estimates for the third quarter of 2015, reflects Abu Dhabi government’s strenuous efforts to achieve sustainable economic development by supporting investment in a number of non-oil sectors. This would, in turn, influence the quality of the various initiatives and development projects announced earlier by the emirate.
Butti Ahmed Mohamed bin Butti Al Qubaisi, Director-General of the Statistics Centre-Abu Dhabi, praised the tremendous development of non-oil activities and sectors in the emirate of Abu Dhabi, with a contribution of 65 per cent to the emirate’s GDP at current prices during the third quarter of 2015, the highest contribution rate registered by these activities in the history of the emirate. He further noted that this record rise was registered in light of the real growth achieved by these activities, and, simultaneously, the recent sharp fall in oil prices on the international markets.
In light of the positive results registered by non-oil activities and sectors in spite of the huge drop in oil prices, Al Qubaisi indicated that the considerable development of these activities reflects the extensive efforts undertaken by the emirate of Abu Dhabi throughout its development journey towards the diversification of the economic base.
Al Qubaisi confirmed that the value added at current prices for non-oil activities and sectors in the emirate of Abu Dhabi amounted to Dh135,753bn during the third quarter of 2015. He further added that the flexibility of the emirate’s economy and the remarkable growth achieved by these activities, as well as other significant factors, have all contributed to the stability of the local economy, in light of the significant drop in oil prices on international markets over the past period.
Al Qubaisi asserted that the value added at constant prices for non-oil activities in the emirate of Abu Dhabi rose by 7.1per cent during the third quarter of 2015, as compared with the same quarter of the previous year, while the value added at constant prices for oil activities increased by 3.9 per cent during the same period.
He further stated that the fixed price index reflects the actual change in the economy where the effect of change in prices is eliminated. Thus, the fixed price index of GDP is recognised as a measurement tool for the quantity of goods and services produced during that quarter and it reflects the real situation of the local economy, especially in light of the non-stability of oil prices.
Al Qubaisi also asserted that Abu Dhabi’s economy, which achieved a significant leap in terms of growth, development and diversification in a short period of time, is growing stronger and stronger thanks to the wise management and strong will and by capitalising on the past experiences. The aim is to achieve optimal exploitation of opportunities available and to utilise the resources in such a way as to achieve comprehensive, sustainable development, thus securing a decent quality of life for citizens with one of the world’s highest standards of living.
Al Qubaisi noted that the results of the quarterly economic surveys conducted by SCAD show that the contribution of non-oil activities and sectors to the GDP at current prices amounted to 63.5 per cent during the first quarter of 2015, but then dropped to 61 per cent during the second quarter of the same year and rose again to 65 per cent during the third quarter of 2015.
He asserted that the latter percentage is the highest rate of contribution to the GDP achieved by non-oil activities and sectors in the history of Abu Dhabi.
He noted that despite the significance of oil in Abu Dhabi’s economy, the emirate employs an ambitious strategy for a diversified economic base, given the remarkable fluctuations in oil prices on the international markets owing to the numerous regional and international developments.
He also explained that the efforts exerted by Abu Dhabi government have clearly influenced the detailed results of the economic surveys conducted by SCAD on a quarterly basis.
Al Qubaisi underlined the importance of quarterly economic surveys conducted by SCAD and the data collected from different administrative sources in giving a recent picture of the reality of Abu Dhabi’s economy. He pointed out that quarterly economic surveying and the making of GDP estimates before the end of the first quarter of 2016 counts as a major achievement, compared to the other statistics centers and authorities around the world.
Al Qubaisi also asserted that the economic surveys and data collected from administrative sources aim at providing the information necessary for establishing a recent database on a number of economic activities and sectors operating in the emirate of Abu Dhabi.
The director-general of the Statistics Centre-Abu Dhabi indicated that this would support decision makers and policy makers in developing these sectors thanks to the data provided whereby the contribution of each activity to the emirate’s economy can be recognised, in addition to the provision of the data required for businessmen and investors to enable them to make the right decisions and assess their investment decisions, as well as to contribute to a comprehensive economic database in the emirate.
He also said that the SCAD also provide the data required for assessing economic diversity and development in non-oil sectors and offer main data to measure the development in development plans and programs in Abu Dhabi.