Economy
From The Report: Abu Dhabi 2013
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Thanks in large part to high oil prices and an increase in its hydrocarbons production, Abu Dhabi continued its economic recovery in 2011 and 2012. Hydrocarbons remain at the centre of the emirate’s economy, accounting for nearly half of its GDP and almost 90% of government revenues in 2010. However, the emirate has been channelling its substantial oil earnings into other sectors so as to reduce its reliance on hydrocarbons in the long term. Indeed, the non-oil sector has exhibited fair growth in recent years as a result of this strategy, rising by 5.4% in 2010 and 7% in 2011, reaching Dh334.3bn ($91.1bn) in the latter year. Another feature of Abu Dhabi’s changing economic landscape is the continued efforts to promote private sector employment. The government is looking into a range of measures to create jobs in the private sector, including encouraging a culture of investment and entrepreneurship among young people, and the promotion of small and medium-sized enterprises. This chapter includes interviews with Nasser Alsowaidi, Chairman, Department of Economic Development (DED); Butti Ahmed Mohammed bin Butti Al Qubaisi, Director-General, Statistics Centre – Abu Dhabi (SCAD); and Mahmood Ebraheem Al Mahmood, CEO and Chairman, ADS Holding.

Articles from this Chapter

Overview

The long view: According to government plans, growth will be supported by added development in selected sectors
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Thanks in large part to high oil prices and an increase in its hydrocarbons production, Abu Dhabi continued its economic recovery in 2011. Hydrocarbons remain at the centre of the emirate’s economy, accounting for nearly half of its GDP and almost 90% of government revenues in 2010. However, the government has a different vision for the future of Abu Dhabi, with far-reaching plans to develop fledgling areas of activity such as manufacturing and tourism. To this end, the emirate has been actively…

Analysis

Welcome changes: A new law is set to alter the structure of companies
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In December 2011 the UAE Cabinet approved a new draft Commercial Companies Law that will replace the companies law that has been in place since 1984. Under development for several years, the new law as specified by the draft could spur investment in Abu Dhabi by making it easier to operate in the UAE and improving corporate governance. However, when it comes to perhaps the most heavily anticipated change – a loosening of foreign ownership restrictions – the draft did not raise the current…

Interview

OBG talks to Nasser Alsowaidi, Chairman, Department of Economic Development (DED)
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Interview: Nasser Alsowaidi Is there a risk that high levels of government spending will crowd out the private sector? NASSER ALSOWAIDI: The net impact of government spending may vary with different conditions: it may increase aggregate demand, stimulating private sector investment in response. Public spending on infrastructure will create opportunities for the private sector. Some may argue that a budget deficit financed by debt will dry up available finance for the private sector, but this is…

Analysis

Breaking the pattern: Efforts to increase Emirati participation in the private sector continue
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A key aim of Abu Dhabi’s labour policies is to increase participation by nationals in the workforce. The government takes a multi-pronged approach, combining employment quotas enforced at the federal level with emirate-specific policies – including investments in education and training, and job placement programmes – designed to develop an Emirati labour force that will meet the requirements of local employers. LABOUR MARKET: The emirate’s workforce has grown rapidly over the past…

Interview

Statistically significant: OBG talks to Butti Ahmed Mohammed bin Butti Al Qubaisi, Director-General, Statistics Centre – Abu Dhabi (SCAD)
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Interview: Butti Ahmed Mohammed bin Butti Al Qubaisi How does SCAD collate its information? What sources do you use, and do all government departments submit their own data? BUTTI AHMED MOHAMMED BIN BUTTI AL QUBAISI: As the sole authority in Abu Dhabi responsible for statistical work, SCAD collects data, conducts censuses and surveys, and prepares and publishes official statistics in collaboration with other government entities. This role is crucial for consistency and efficiency in the emirate's…

Analysis

Selling debt: State-owned enterprises regularly issue bonds
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The government’s strong fiscal balance means Abu Dhabi has only needed to issue a limited number of sovereign bonds. When the emirate has sold government securities at all, it has mainly been for the purpose of establishing a yield curve for the private sector. While the government may have only rarely tapped international capital markets, a few 100% state-owned enterprises (SOEs) – including the Tourism Development and Investment Company (TDIC), Mubadala Development Company and International…

Analysis

The art of giving: Charitable organisations are providing assistance at home and abroad
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While the government plays a key role in supporting residents in need, several charitable organisations are also part of the landscape of the emirate and the larger UAE. Some of these groups are explicitly focused on domestic issues, while others look further afield and financially support development projects abroad. DONATIONS UP: According to the World Giving Index 2011, a report compiled by Charities Aid Foundation (CAF), the UAE was the 47th-most-charitable country in the world that year,…

Viewpoint

Mohamed Thani Murshed Al Rumaithi, Chairman, Abu Dhabi Chamber of Commerce & Industry (ADCCI), on doing business in the emirate
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Abu Dhabi enjoys a prime position in the region as a leading centre of business. Many of the world’s largest companies have established themselves in the emirate, having been attracted by its healthy business environment. Abu Dhabi offers companies a range of investment opportunities, while creating the right business and legislative environment for investors to grow their respective enterprises. ADCCI has been a very important component when it comes to the UAE capital’s strategic plans to…