Economy
From The Report: Abu Dhabi 2014
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As the largest and most populous of the seven emirates that make up the UAE, Abu Dhabi plays a central role in the federation’s economy. Following the roadmap laid out in the Abu Dhabi Economic Vision 2030, its long-term economic development plan, the emirate has succeeded in nurturing new economic sectors and seems to be on track to meet its goals. The oil and gas sector accounted for 56.5% of Abu Dhabi’s GDP at current prices in 2012, followed by construction (9.6%), manufacturing (5.9%) and real estate (4.4%). According to the IMF, Abu Dhabi’s efforts to broaden its economic base will help drive annual growth of 4% in the non-oil economy over the coming years.
This chapter contains interviews with Nasser Alsowaidi, Chairman, Abu Dhabi Department of Economic Development; Khaldoon Khalifa Al Mubarak, CEO, Mubadala; Butti Ahmed Mohammed bin Butti Al Qubaisi, Director-General, Statistics Centre – Abu Dhabi; Mahmood Ebraheem Al Mahmood, CEO and Chairman, ADS Holding; and Mohamed Thani Murshed Al Rumaithi, Chairman, ADCCI.
Articles from this Chapter
On course: The growth of key non-oil sectors supports long-term strategic plans
Inclusive growth: New efforts focus on boosting Emirati participation in the workforceOBGplus
As Abu Dhabi seeks to transform itself from a resource-based economy to one in which knowledge-based activity accounts for a far greater share of GDP, its labour market faces a transition point. To date the emirate has, like much of the rest of the GCC, had great success in attracting skilled and unskilled foreign labour to work within its jurisdiction. It has provided financial incentives to private companies, manifold job opportunities for expatriates, formulated one of the world’s most favourable…
OBG talks to Nasser Alsowaidi, Former Chairman, Abu Dhabi Department of Economic DevelopmentOBGplus
Interview:Nasser Alsowaidi What can be done to balance high levels of public investment and private sector participation? NASSER ALSOWAIDI: Early on the government of Abu Dhabi recognised the importance of engaging the private sector in the development process. Indeed, the presence of a dynamic private sector is considered one of the cornerstones of the public policy agenda and is a key element of the Abu Dhabi Economic Vision 2030. I firmly believe the government is not competing with the…
OBG talks to Khaldoon Khalifa Al Mubarak, Group CEO and Managing Director, MubadalaOBGplus
Interview:Khaldoon Khalifa Al Mubarak As Abu Dhabi pursues its economic diversification priorities, what are the critical success factors for establishing new industry sectors? KHALDOON KHALIFA AL MUBARAK: The Abu Dhabi government has articulated a very clear vision for the development and diversification of its economy. Known as the Abu Dhabi Economic Vision 2030, the strategy is designed to boost the contribution of non-oil, export-oriented sectors to GDP. The government is relying on the…
Making a difference: Citizens of the UAE have a proven track record of providing charitable donationsOBGplus
The government’s significant role in the domestic economy, and the sizeable fiscal spending that underwrites much of the UAE’s infrastructural development, sometimes obscures another important facet of the nation’s economic development. The role played by charitable organisations in the UAE is a prominent one, and a wide array of institutions with a social development mandate – targeting populations both at home and abroad – operate within the emirate. A Jump In Donations A strong…
Data driven: OBG talks to Butti Ahmed Mohammed bin Butti Al Qubaisi, Director-General, Statistics Centre – Abu Dhabi (SCAD)OBGplus
Interview:Butti Ahmed Mohammed bin Butti Al Qubaisi How can Abu Dhabi improve its statistical system to put it on par with those in developed countries? BUTTI AHMED MOHAMMED BIN BUTTI AL QUBAISI: SCAD is eager to develop its statistical system and expand its best practices to all stakeholders. This is done by constant communication and coordination with major stakeholders in the emirate, and by conducting various workshops with our partners to improve awareness of statistics and its critical…
Spreading the wealth: The government is working to boost economic activity in Al Ain and Al GharbiaOBGplus
While the Abu Dhabi Economic Vision 2030 strategy provides a clear path to growth and diversification, reaching its goals – which include an average annual growth rate of 7% until 2015 and 6% annually thereafter; significant expansion of the non-oil sector, with the aim of it accounting for 64% of GDP by 2030; and a 50% or greater increase in GDP per capita – is a challenging undertaking. It is made more so by the emirate’s geographic location, which finds Abu Dhabi in close proximity to regional…
OBG talks to Mahmood Ebraheem Al Mahmood, CEO and Chairman, ADS HoldingOBGplus
Interview:Mahmood Ebraheem Al Mahmood Given that the Abu Dhabi Global Market (ADGM) will have free zone status, in what ways will it be able to enhance the domestic economy? MAHMOOD EBRAHEEM AL MAHMOOD: The ADGM is an important part of the Abu Dhabi Economic Vision 2030 and the overall diversification and development of the economy. The financial services sector is already expanding very quickly, and the additional benefits that the new free zone will offer will support this growth. The ADGM…
OBG talks to Mahmood Ebraheem Al Mahmood, CEO and Chairman, ADS HoldingOBGplus
Interview:Mahmood Ebraheem Al Mahmood Given that the Abu Dhabi Global Market (ADGM) will have free zone status, in what ways will it be able to enhance the domestic economy? MAHMOOD EBRAHEEM AL MAHMOOD: The ADGM is an important part of the Abu Dhabi Economic Vision 2030 and the overall diversification and development of the economy. The financial services sector is already expanding very quickly, and the additional benefits that the new free zone will offer will support this growth. The ADGM…
OBG talks to Mohamed Thani Murshed Al Rumaithi, Chairman, Abu Dhabi Chamber of Commerce and Industry (ADCCI)OBGplus
Interview:Mohamed Thani Murshed Al Rumaithi How will the private sector benefit from the development budget? Might it be necessary to import expertise to ensure spending goals are met? MOHAMED THANI MURSHED AL RUMAITHI: In advanced economies, almost half of fiscal expenditure is directed towards strategic development projects. Abu Dhabi has steadily increased its expenditure and is expected to reach international benchmarks in the near future. The existing budget is primarily directed towards…
Greater inflows: Foreign direct investment is becoming more diverse in terms of both sources and destinationsOBGplus
A number of reasons combine to make Abu Dhabi an attractive location for foreign direct investment (FDI), the most obvious of which is the emirate’s sustained positive economic performance. Indeed, Abu Dhabi’s real GDP grew at a compound rate of 5.6% between 2001 and 2012, according to the Abu Dhabi Department of Economic Development (ADDED), the body responsible for developing and proposing the emirate’s economic and commercial policy. The results of this growth are visible to any visitor…
From small beginnings: Encouraging the development of SMEsOBGplus
The role of small and medium-sized enterprises (SMEs) is crucial in any economy. According to the International Finance Corporation (IFC), formal SMEs account for up to 45% of employment and up to 33% of GDP in emerging economies, while in high-income countries they account for 62% of employment and nearly 64% of GDP. Given the significant role that SMEs play in any economy, Abu Dhabi has placed the nurturing of this segment at the forefront of its development strategy. The current policy regarding…
Setting benchmarks: The authorities hope to establish a vibrant financial marketOBGplus
The strong fiscal position of the UAE has meant that it has never been compelled to turn to the debt markets to balance its budgets, and comments in recent years by the federal government suggest that this is not likely to change in the short term. While the government has moved to formulate legislation that would allow for public debt issuances at the federal level, it seems unlikely that an actual issuance would occur any time soon. When discussions regarding the proposed law took place in the…
Signs of recovery: Inflation has been increasing alongside renewed activity in the real estate sectorOBGplus
Although inflation had been a growing issue prior to the 2008-09 global economic crisis, these concerns have since been receding. In December 2008, the inflation rate hit an all-time high of 12.3% – a level high enough to present a significant challenge for the Central Bank of the UAE (CBU). Finding its ability to respond to the trend through standard monetary policies limited by the dirham’s formal link with the US dollar, the CBU faced calls to do away with currency peg altogether – a route…
