Expectations for economic growth in Abu Dhabi sit at 4.5 percent for 2011, which falls under the government plans. Inflation should remain at about 3 percent in the emirate, according to recent statements by a government official.
Plans for the emirate lay out an annual economic output expansion of 7 percent on average until 2015.
Mohammed Omar Abdullah spoke to the media at a recent investment forum stating that numerous driving factors will impact growth, including tourism and industry. Abdullah is an undersecretary in the Economic Development Department of Abu Dhabi.
Abu Dhabi is responsible for over 60 percent of the annual GDP of the third largest oil-exporting nation in the world, the UAE.
A March Reuters poll of analysts state that the UAE economy will see 3.4 expansion for this year, which is a faster rate than the 2.2 percent estimated for 2010 due to the process Dubai went through last year emerging from debt woes.
Abdullah added that expectations see consumer prices in Abu Dhabi holding at about 3 percent for 2011.
He noted that there are mechanisms in place to deal with and control inflation.
Abu Dhabi holds 10 percent of global oil reserves and has experienced increasing rates of inflation over the last year. There was a peak of 4.1 percent seen in October and November 2010, but the rate slowed down from February’s 3.1 percent to 1.9 percent in March based on year-on-year numbers.
The last half of 2011 will see the implementation of plans for the set up of an agency to promote exports according to Abdullah, who also stated that a competitiveness office bent on establishing the rules and regulations involved in opening new businesses is also on the table.Paul Holdsworth, Staff Writer, Gulf Jobs Market News