WAM ABU DHABI: Abu Dhabi’s manufacturing industries rate of growth doubled in 2011 as it rose to 22% compared 11% in 2010. This reflects the success of the efforts exerted by the Government of Abu Dhabi to develop the industrial sector, and other promising industries, which will constitute one of the main pillars of economic diversification for the implementation of the Abu Dhabi Economic Vision 2030.
The Abu Dhabi Economic Report 2012, issued by Abu Dhabi Department of Economic Development, contains six chapters, which deal with international, regional, economic developments, investment, commodity exchange through Abu Dhabi ports, productive activities, service activities and public finance and economic planning in the emirate of Abu Dhabi. The report reviews the important economic issues pertinent to the local economy of Abu Dhabi.
Chairman of Abu Dhabi Department of Economic Development, Nasser Ahmed Al Suwaidi, in his foreword to the report, said that the Department timely issues its annual economic report, to serve as a reference for economic and social development in the emirate. He pointed out that Abu Dhabi economy had undoubtedly surpassed the repercussions of the global financial crisis, made great strides in its economic diversification surge and achieved high levels of development and progress in a short span of time, under the prudent leadership which spares no effort in utilizing available resources for the betterment and prosperity of people.
The official stressed that the optimal use of oil revenues under the vision of President His Highness Sheikh Khalifa bin Zayed Al Nahyan and the continued support of His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, provided the opportunity to implement development plans and programs, which focus on the main objectives of diversifying sources of income, expanding the economy, and achieving sustainable development.
He explained that the judicious vision of the leadership is evidenced by the implementation of several strategic projects, which contributed to the enhancement of the competitiveness of Abu Dhabi, and the consolidation of conviction among investors from different countries of the world, to invest in the emirate, and that Abu Dhabi offers a spectrum of various opportunities for investment in the private sector, and supports balanced, stable and sustainable growth.
Al Suwaidi, hailed the progress achieved by Abu Dhabi during the past few years, despite the unfavorable external conditions. He said that this confirms the robustness and effectiveness of remedial policies adopted by the government, and the measures taken to overcome difficulties and challenges.
"I have great confidence in our ability to continue along the path of excellence, and realize the ambitious vision of the government of Abu Dhabi, in view of the unlimited support of our leadership, our determination and joint efforts. " For his part, the Undersecretary of Abu Dhabi Department of Economic Development, Mohammed Omar Abdullah, said in his introduction to the report, that the report provides a comprehensive analysis of the different variables and economic indicators, highlights the points of strength and improvement in the emirate’s economy and provides detailed data on economic issues to aid decision-makers, businessmen, and researchers.
The Undersecretary said that according to the report, Abu Dhabi GDP had achieved a quantum leap in 2011, as it increased by 30% to AED 806 billion; exceeding the levels that had been reached prior to the global economic crisis.
This strong growth provides a clear evidence that Abu Dhabi economy had completely recovered from the effects of the global crisis, supported by high oil prices, and the growth of non-oil economic activities good, which grew by 7% in 2011; as well the continued strong growth of the manufacturing activity, which achieved the highest growth rate among non-oil economic activities.
H.E. the Undersecretary, mentioned that despite the hike in oil prices during 2011, but the contribution of oil to GDP did not exceed 58.5%, which emphasizes that the plans of emirate to expand its economy and diversify sources of income, were successfully implemented, in accordance with the objectives of the Economic Vision 2030.
The Undersecretary explained that Abu Dhabi’s economy has become one of the best performing economies in the world, due to the emirate’s continuous investment in human resources upgrading and innovation and development, in line with its long-term vision to transfer into a knowledge-based economy.
The first chapter of Abu Dhabi Economic Report 2012, deals with international and regional economic developments, and analyzes international economic growth, inflation, international trade, unemployment, the current account and other issues. The report focuses on the general economic situation of the State.
The second chapter sheds light on the economic developments in the emirate of Abu Dhabi, and analyzes performance data, GDP, inflation, trade balance, unemployment, population, labor force, total fixed capital formation and the relative importance of economic activities.
In its third chapter, the report reviews investment and commodity exchange through the ports in the emirate; and analyzes commodity exchange, exports, imports and re-exports; and lists the most important trade partners of the emirate, as well as sources of foreign direct investment by economic activity.
The fourth chapter of the report highlights the productive activities in Abu Dhabi during 2011; and reviews manufacturing and extractive industries, construction, agriculture and fishing, and the electricity, gas, water and waste management activities.
Chapter five of the report focuses on services activities in the emirate of Abu Dhabi in 2011 and analyzes relevant data and statistics issued by the Statistics Centre – Abu Dhabi, in addition to the performance and developments in the activities of wholesale and retail trade, health, education, hotels and restaurants, real estate, transport and storage, financial institutions and insurance.
Chapter six of the annual economic report is devoted to public finance and economic planning, and the analysis of relevant data on finance, revenue and expenditure.
The report concluded by addressing important economic issues of concern to Abu Dhabi’s economy, highlighting the recently launched "Abu Dhabi Economic Outlook Report 2012 – 2016", and the most important assumptions, predictions and forecasted results derived by using the macro-economic model for the emirate Abu Dhabi; in addition to the most significant engines of economic growth during the forecast period. The report also reviewed the first "Human Development Report for the Emirate of Abu Dhabi", which was launched recently.
The Abu Dhabi Department of Economic Development will publish the chapters of the report in media in the coming days to provide an analytical review on the performance of the Abu Dhabi’s economy during 2011.