Abu Dhabi is looking to diversify the economy and reduce its dependence on oil.
The plans in Abu Dhabi are to hit 7 percent annual growth on average from now until 2015, with a further 6 percent annual growth from that point on. The upward momentum will be supported by diversification and a lower dependence on oil, based on information in a recent bond prospectus.
The capital is the source of most of UAE’s oil wealth and will see expansion of more than 500 percent in total GDP growth by 2030, based on a Mubadala prospectus. In the 2030 Economic Vision, the GDP in Abu Dhabi is expected to grow by seven percent annually from now until 2015 and experience stable growth of six percent annually thereafter. This will result in total GDP growth of more than 500 percent by the year 2030, according to the document.
Mubadala hosted road shows for investors in Dubai and Abu Dhabi earlier this week, working out the plans to spread out Dh 60 billion in investments this year.
The government of Abu Dhabi put in place a long-term plan in 2009 to establish an economy based on knowledge and reduce the dependence on oil.
The non-oil economic sector will see significant expansions by the fulfillment of the 2030 Economic Vision, reaching a trade balance between non-oil and oil by 2028.
Growth in non-oil GDP will experience acceleration beyond the rate seen in the oil sector, based on government intentions. The two should reach equilibrium in trade by 2028, based on information in the prospectus. Growth may not be consistent over the course of the period, due to differing economic cycles and oil price variations that cause the growth rate to vary.
Twelve sectors are in focus in the economic vision, including aviation, transportation, tourism and oil and gas.
Spending totaling $1.6 billion is pledged to maintain low prices for basic commodities, increase military pensions and improve infrastructure in the UAE. Also, according to sources the plans for further cuts on fuel subsidies have been postponed.Paul Holdsworth, Staff Writer, Gulf Jobs Market News