Economy
From The Report: Abu Dhabi 2019
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Abu Dhabi is the largest of the emirates that comprise the UAE, in terms of both its land mass and economy, and home to the majority of the country’s energy production and reserves. According to Statistics Centre – Abu Dhabi (SCAD), its economy expanded at a rate of 31.7% in 2005 and 32.3% in 2011 in nominal terms. Given the current environment, in which oil prices remain below the $100 mark seen at the beginning of the decade, the emirate has embarked on a strategy focused on economic diversification and more efficient government spending. The drive features an examination of public spending and fiscal management; phased reductions and elimination of subsidies; and the gradual consolidation of duplicative commercial entities controlled by government bodies. This chapter contains interviews with Sheikh Hamdan bin Zayed Al Nahyan, Ruler’s Representative in the Al Dhafra Region; Khaldoon Khalifa Al Mubarak, Group CEO and Managing Director, Mubadala Investment Company; and Saif Mohamed Al Hajeri, Chairman, Abu Dhabi Department of Economic Development.

Articles from this Chapter

Overview

Strategic spending: Return to surplus anticipated as consolidation continues
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Abu Dhabi is the largest of the seven emirates that comprise the UAE, in terms of both its land mass and economy, and home to the majority of the country’s energy production and reserves. According to Statistics Centre - Abu Dhabi (SCAD), the emirate’s economy expanded at a rate of 31.7% in 2005 and 32.3% in 2011 in nominal terms. Although lower external demand and a sharp drop in oil prices in mid-2014 weighed on activity, Abu Dhabi’s economy remained resilient, growing by 9.5% in 2017. Given…

Interview

A modular future: Sheikh Hamdan bin Zayed Al Nahyan, Ruler’s Representative in the Al Dhafra Region, on staking growth in energy, education and transport
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Interview :Sheikh Hamdan bin Zayed Al Nahyan How can the province support the energy sector’s growth in an environmentally responsible manner? SHEIKH HAMDAN BIN ZAYED AL NAHYAN Al Dhafra has the means and motivation to support energy’s growth in a fashion that preserves the environment for future generations. As part of UAE Energy Strategy 2050, Emirates Nuclear Energy Corporation is currently building, in accordance with the highest global standards of safety, quality, efficiency and…

Analysis

On the rise: A surge of investment and diversification is benefitting Al Dhafra’s local economy
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Abu Dhabi’s government is pumping billions of dollars of investment into the region of Al Dhafra as it seeks to expand key hydrocarbons infrastructure, and create an integrated and diversified local economy. Located south-west of Abu Dhabi City, Al Dhafra encompasses around 60% of the total landmass of the emirate. Mostly desert, the region has historically been very sparsely populated, although government investment and job-creation initiatives are encouraging both locals and expats to move to…

Interview

Innovation drive: Khaldoon Khalifa Al Mubarak, Group CEO and Managing Director, Mubadala Investment Company, on developing asset portfolios and wider investment
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Interview :Khaldoon Khalifa Al Mubarak What are the main ways in which Mubadala is developing its capital allocation strategy? KHALDOON KHALIFA AL MUBARAK: As an active international investor, we are continually assessing our combined asset portfo- lio and capital allocation strategy in line with our principal goal of delivering attractive commercial returns for our shareholder, the government of Abu Dhabi. This has always been the case, but since the merger of International Petroleum Investment…

Analysis

Floats and mergers: Increased investment opportunities and consolidation efforts bolster fiscal policy
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One of the core aspects of Abu Dhabi’s drive to boost the efficiency of public spending is a reorganisation of the emirate’s investment vehicles and stateowned commercial arms. These include sovereign wealth funds, domestically oriented conglomerates, banks and other institutions commonly referred to as government-related entities (GREs). The past several years have seen a number of announcements of major mergers, such as the union of sovereign wealth funds Mubadala Investment Company and the…

Interview

New opportunities: Saif Mohamed Al Hajeri, Chairman, Abu Dhabi Department of Economic Development, on government strategies to promote growth in business, entrepreneurship and trade
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Interview : Saif Mohamed Al Hajeri How can public-private partnerships (PPPs) contribute to the emirate’s economic development? SAIF MOHAMED AL HAJERI: Through the Abu Dhabi Economic Vision 2030, the emirate seeks to achieve a number of important objectives for the future, such as sustained growth, diversification and balanced and equitable regional development. Economic Vision 2030 emphasises the importance of the private sector in encouraging progress across different sectors and regions. PPPs…

Overview

Tax liabilities: Impacts of the trend towards lower corporate tax rates on developed and developing economies – Abu Dhabi 2019
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Recent decades have seen a downward trend in corporate taxation, with headline corporate tax rates falling by 20 percentage points since the early 1980s. The average for advanced economies dipped to 22% in 2015, and investment incentives have further reduced effective rates for transnational corporations. After the 2007-08 global financial crisis, many countries had to slash spending and raise revenue to rein in deficits, but lower corporate taxes persisted. In the face of post-crisis austerity, however, public tolerance of corporate tax avoidance has dissipated, thus increasing political momentum to improve transparency and limit loopholes. The…