Abu Dhabi’s economic performance report by sectoral and macro indicators
Abu Dhabi's macro economy saw robust performance in Q1 of 2016, reflecting continuous good growth rates at the end of 2015. Latest estimates issued by SCAD indicate that the GDP of Abu Dhabi, at the fixed prices, reached AED 196.1 billion in Q4 of 2015 with a growth rate of 7.7%, compared to the same period in 2014.
These results appeared in Abu Dhabi's Economic Performance Report in Q1 of 2016 as per Abu Dhabi's sectoral and macro indicators. The report is issued by ADDED, the Abu Dhabi Department of Economic Development's Studies Directorate.
Ali Majid Al Mansouri, ADDED Chairman, stressed that Abu Dhabi's local economy witnessed strong growth momentum in non-oil sectors in Q4 of 2015. Sectoral data indicates that the performance of some economic sectors in Abu Dhabi improved in Q1 of 2016, especially in the financial market, the tourism sector and non-oil foreign trade, as reflected by data issued by the Abu Dhabi Tourism Authority, Abu Dhabi Securities Market, and SCAD.
He pointed out that non-oil sectors enhanced economic growth in Abu Dhabi in Q4 of 2015, when non-oil GDP growth rate, at fixed prices, reached 8.8% compared to an oil GDP growth rate of 7.1%.
The chairman pointed out that the relative contribution of non-oil activities to Abu Dhabi's GDP increased to 50.7% in Q4 of 2015, compared to roughly 50.2% in Q4 2014, as per the estimates of SCAD. The good performance of non-oil sectors in Abu Dhabi demonstrates the positive impact of efforts to transform the fluctuations in world oil prices into an opportunity, with the objective of promoting economic diversity by enhancing non-oil activities.
"The performance of non-oil sectors reflects the flexibility and capabilities of Abu Dhabi's economy, as it has the essential economic foundations in terms of a solid financial situation, competitive business environment, attractive investment climate and social stability. Furthermore, it reflects its flexibility to accommodate challenges related to unfavourable developments in the international economy, transforming these challenges into opportunities to move forward towards more diversified economy and achieve the goals of the Abu Dhabi Economic Vision 2030," he concluded.
Khalifa bin Salem Al Mansoori, ADDED Acting Under-Secretary, said that the overall reading of the results of development indexes in Q1 of 2016 reflects continuous optimism and confidence amongst consumers and within the business community over the economic conditions in the emirate. This follows the growth momentum witnessed by the economy in Q4 of 2015. Meanwhile, Abu Dhabi and the UAE's efforts continue to contain the economic impact of international economic developments, especially the continuous fluctuations in oil markets.
He said that the General Index for Consumer Confidence has shown continuous optimism among consumers in Abu Dhabi across demographic and social levels in Q1 of 2016, as they have better expectations of the economic conditions and their future financial conditions.
The Acting Under-Secretary said that in the business sector, the General Index of Confidence in the Business Climate and its sub-indeces have shown persistent optimism amongst economic establishments of various activities, sectors and sizes in Q1 of 2016, in spite of the fact that that the performance of the general indicator in 2016 was relatively affected by the decline of establishments’ evaluation of their own internal conditions and sectors in Q4 2015, compared to the same period the previous year, which in turn affected establishments' optimism levels.
Regarding the results of the National Family Status Observatory, and according to the goods prices indicator, the Chairman of ADDED said that these results showed that prices are seen to be high by less numbers/groups of UAE national families in Q1 of 2016. Moreover, the consumption pattern of most national families of food commodities did not witness any change, despite their feeling of price increases in Q1 of 2016. The results also showed a decline in the percentage of borrowers from national family heads to the minimum levels, thanks to the initiatives and efforts of rationalising citizens' consumption and borrowing behavior.
As for Abu Dhabi's sectoral performance indicators in Q1 of 2016, the latest data issued by Abu Dhabi Tourism and Culture Authority showed enhanced performance of the tourism sector in Q1 of 2016. The number of hotel guests increased by about 11%, compared to the same period in 2015, to approximately 1,115,547 guests. The number of hotel nights increased by about 10% to approximately 3,147,754 nights.
Occupancy rate in hotel facilities was about 79%, a decrease of 4% compared with the same period in 2015. However, the total revenues of hotel facilities went down by 6% to AED 1,719 million in Q1 of 2016 compared to AED 1,820 during the same period in 2015. By nationalities, guests from within the UAE recorded growth rate of 11% in Q1 of 2016, coming fifth after guests from Jordan, Egypt, India and the Philippines. UAE guests accounted for 32% of the total guests in Q1 of 2016. Indian guests came second with 7%.
In the real estate sector, the Jones Lang LaSalle annual report, which monitors real estate performance in Abu Dhabi, marks stability in housing unit rental rates in Q1 of 2016, despite the continuous decline in oil prices. Real estate market data indicates that available real estate units decreased due to lower demand. Consequently, rental rates were stable and market data reflected a decline in real estate trading volume for housing units in Q1 of 2016 owing to lower optimism levels amongst investors as a result of lower oil prices.
As for Abu Dhabi’s non-oil foreign trade in Q1 of 2016, the report highlighted that the total value of Abu Dhabi’s non-oil foreign trade in goods in January - February 2016 has grown to AED 30.8 billion, about 7.7% growth rate compared to the same period in 2015. This was the result of a higher rate of non-oil exports by 69.7% to AED 9.8 billion, while the value of imports and re-exports decreased -9.1% and about -0.5%, respectively.
The considerable increase of non-oil exports during January - February 2016, compared to the same period in 2015, was due to the emirate’s higher volume of exports in terms of consumer goods (food and beverage), by 316.4%, and transport equipment and its parts by 310.3%.
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