Contribution of real estate to the GDP in Abu Dhabi 2013-2019

In 2019, the contribution of the real estate sector to the gross domestic product (GDP) of the emirate of Abu Dhabi reached around 38.4 billion United Arab Emirates dirhams (AED), down from around 47 billion AED in 2017. The total estimated GDP of the emirate for that year was about 915 billion dirhams.  

 The economy of Abu Dhabi 

The UAE is a federation comprising of seven emirates, the largest of which is Abu Dhabi. It makes up around three-quarters of the country’s total land area and is the center of the oil industry. By 2030, the emirate of Abu Dhabi was forecasted to have a population size of around 1.6 million people. The country has been diversifying its economy to shift away from its reliance on the hydrocarbons sector. Following the same strategy, the Abu Dhabi government has adopted transformative steps to achieve a knowledge-based economy, making the emirate an attractive business environment. Moreover, Abu Dhabi’s strategic geographic location, highly developed infrastructure, in addition to access to energy sources have contributed to its integrated business environment. The market capitalization of the emirate in 2019 was almost double its value in 2010.

 The future of the real estate market 

    The real estate sector has been one of the driving forces of the UAE’s economic growth over the past two decades. The total number of real estate enterprises in Abu Dhabi reached 880 in 2017. However, the market conditions have been slowing down recently, with COVID-19 adding further instability. The UAE and Abu Dhabi authorities have taken initiatives aiming to support the economic recovery of the emirate for 2021.