Economy
From The Report: Abu Dhabi 2015
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While hydrocarbons still form the bulk of Abu Dhabi’s economy, the sector’s contribution to GDP has been falling over the last 10 years as the emirate pushes ahead with diversification goals in line with Abu Dhabi Economic Vision 2030. The manufacturing segment has seen sustained growth in recent times with the manufacturing of chemicals and plastics, basic metal and non-metallic mineral products (excluding oil), contributing $31.22bn, $5.47bn and $3.39bn to GDP, respectively, in 2012. The 2015 launch of the Abu Dhabi Global Market (ADGM) is expected to help boost the emirate’s growing reputation as a financial centre and a number of incentives have been proposed for companies operating within ADGM including 100% foreign ownership, a 50-year tax holiday, and a Customs duty exemption. Elsewhere, tourism is another sector that has been targeted for expansion, with the government aiming to attract 8m visitors by 2030. With nearly 3.5m arrivals in 2014, representing year-on-year growth of 25%, it appears the emirate is well on its way to hitting that target.

This chapter contains interviews with Ali Majed Al Mansoori, Chairman, Abu Dhabi Department of Economic Development; Khaldoon Khalifa Al Mubarak, Group CEO and Managing Director, Mubadala Development Company; Butti Ahmed Mohammed bin Butti Al Qubaisi, Director-General, Statistics Centre – Abu Dhabi; Mahmood Ebraheem Al Mahmood, CEO and Chairman, ADS Holding; and Mohammad Helal Al Muhairi, Director-General, Abu Dhabi Chamber of Commerce and Industry.

Articles from this Chapter

Overview

Despite falling oil prices, the economic outlook remains positive
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As home to the capital of the UAE, the emirate of Abu Dhabi hosts many of the institutions that oversee the nation’s social and economic development. Over recent decades these bodies have put the country’s hydrocarbons resources to good use, employing the sizeable revenues to underpin an ambitious strategy of economic diversification. The results of this effort are apparent on the emirate’s balance sheet, where expansion of the non-oil sector outpaces oil sector growth. The emerging hubs of…

Interview

Innovation focus: OBG talks to Ali Majed Al Mansoori, Chairman, Abu Dhabi Department of Economic Development (ADDED)
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Interview:Ali Majed Al Mansoori Which sectors have been identified as areas that require greater investment and more active participation from the private sector? ALI MAJED AL MANSOORI: Parallel to the continuing expansion of the emirate’s primary economic segments of oil and gas, the focus will be on developing other industries that are expected to grow at an aggregate annual rate exceeding 7.5%, helping the emirate realise its desired balance in non-oil trade by 2028. In particular,…

Analysis

Mubadala remains an agent for local economic development and diversification, while pursuing a global vision
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The expansion of the UAE’s non-oil sector over the past 10 years has been one of the major economic success stories to emerge from the country. A number of factors have combined to bring this about, nearly all of them a direct result of government policy. The nation’s openness as a business destination, the resulting expansion of the workforce and expatriate population, a carefully managed financial system, and a clear, long-term development strategy for the country have all helped the non-oil…

Interview

Khaldoon Khalifa Al Mubarak, Group CEO and Managing Director, Mubadala Development Company: Interview
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Interview:Khaldoon Khalifa Al Mubarak How would you assess Abu Dhabi’s industrial development and diversification? What effect is this having in terms of job creation? KHALDOON KHALIFA AL MUBARAK: I think we’re making good progress. GDP diversification is a high priority, yet part of that is developing sectors that create a range of career paths for current and future generations. Mubadala is helping to progress Abu Dhabi’s diversification – actively developing industries such as…

Analysis

Soon to launch financial zone set to significantly contribute to the economy
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A new financial centre for Abu Dhabi is taking shape on Al Maryah Island. Due to formally launch in 2015, Abu Dhabi Global Market (ADGM) is designed to promote the emirate as a global financial centre, develop the economy and make Abu Dhabi an attractive environment for financial investments. Developing the financial services sector is one of the seven pillars of Abu Dhabi Economic Vision 2030, and it is highlighted as a key component of achieving a sustainable, diversified economy. ADGM will join…

Analysis

A new city is beginning to offer a more sustainable lifestyle
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While Abu Dhabi’s global reputation and high per capita GDP are derived from the exploitation of its hydrocarbon resources, the emirate is also home to what has been described as the world’ first “cleantech” cluster. Masdar City was established in 2006 as a centre for research and development (R&D) for clean technology and is set to become one of the most sustainable cities in the world. The initial master plan for the 6-sqkm development was designed by British architectural firm Foster…

Interview

Informed decisions: 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 What is the role of a comprehensive statistics resource in the context of a modern economy, and how can it further boost investor confidence? BUTTI AHMED MOHAMMED BIN BUTTI AL QUBAISI: Official statistical information provides a sound basis for development in the fields of economics, demographics, society and the environment. It is a key element in the information system of a society, and is of benefit to the government, the economy…

Interview

Mahmood Ebraheem Al Mahmood, CEO and Chairman, ADS Holding: Interview
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Interview:Mahmood Ebraheem Al Mahmood To what extent does the MSCI upgrade promote more stability and enhance the depth of the market? What else needs to be done in this regard? MAHMOOD EBRAHEEM AL MAHMOOD: The MSCI upgrade for the UAE was a very positive move, but as with all changes of this significance, we must allow time for the benefits to become apparent. GCC regional markets have a very high percentage of retail investors, but the change to emerging market status will encourage more…

Analysis

The events industry is attracting an increasing number of visitors
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An impressive roster of events is helping to attract business and travellers to Abu Dhabi, as a result transforming it into a major regional tourism destination. What do the F1 season finale, the legendary British rock band The Who, the final of the International Sailing Federation Sailing World Cup, the Taste of Abu Dhabi food festival and the world premiere of a new concert by Spanish conductor Jordi Savall all have in common? The answer is that visitors to Abu Dhabi in November 2014 could enjoy…

Interview

Mohammad Helal Al Muhairi, Director-General, Abu Dhabi Chamber of Commerce and Industry (ADCCI): Interview
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Interview:Mohammad Helal Al Muhairi How can local content requirements and institutional frameworks be developed to support small and medium-sized enterprises (SMEs)? MOHAMMAD HELALAL MUHAIRI: The local content requirement has long been used by many countries, both advanced and developing, as a tool for promoting SMEs and protecting infant industries. The extent to which SMEs will benefit from this requirement depends on the types of goods and services covered by this rule, the ownership…

Analysis

Building on existing progress to create an environment conducive to entrepreneurship
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The best way of using public funds to encourage entrepreneurship has long been a source of debate. Market purists argue that a government’s role is primarily that of an enabler, in that its core focus should be on creating an environment in which capital can flow from investors to new businesses. The classic example of this approach is Silicon Valley, where a confluence of talent, money and innovation attracts thousands of investors each year, all of them hoping to take an equity stake in the next…

Analysis

Ratings agencies maintain that falling oil prices will not be a major concern for the emirate
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One of the more notable global economic trends observed during the second half of 2014 was the sustained slide of oil prices. After trading above the $100 mark since 2011 and starting 2014 around $110, from August 2014 Brent North Sea Crude began a decline, which saw it dip below $70 by early December 2014 and end the year at $56. Naturally, attention turned to hydrocarbons-fuelled economies in the GCC and elsewhere, with analysts running through fiscal budgets, crosschecking estimated break-even…