TLTP
ABU DHABI
Abu Dhabi’s economy will expand by 6 percent to 8 percent over the next two years, with the oil sector, financial services, government spending and foreign investment driving the growth, a senior government official said.
The expansion from 2021 to 2022 comes after a dip in gross domestic product of about 3 percent to 4 percent this year, and will depend on the Covid-19 pandemic and the global trade environment, said Mohammed Al Shorafa, chairman of the Abu Dhabi Department of Economic Development (ADDED).
“Abu Dhabi’s economy is very resilient in terms of external shocks. Don’t forget that Covid has disrupted a lot of global systems and logistics chains and everyone has to find ways to resolve those issues,” he said.
“We have not stopped any of our capital investment, it is a testament that the economy is still continuing, the government is still spending and the government support is in all different angles of the economy.”
Abu Dhabi, which holds about 6 percent of the world’s proven oil reserves, is taking measures to help its economy rebound amid the virus-induced slowdown and cheaper oil prices.
The government has launched economic stimulus packages worth several billions of dirhams to soften the blow of the pandemic on businesses and citizens as it presses on with its economic diversification goals.
Al Shorafa, who is also a member of the Abu Dhabi Executive Council, said the pandemic had further hastened the emirate’s existing strategy to invest in advanced technology in areas that range from artificial intelligence to e-commerce.
“Abu Dhabi had a plan even before the pandemic and we are pushing even harder to get all of these online,” he said.
Having Abu Dhabi’s holding company ADQ, government-related entities and the private sector “working hand in hand and developing our economic strategy is now the most important thing in getting it done”, he said.
The emirate is positioning itself as a technology hub and seeking to attract companies in sectors that are crucial to its growth such as agricultural technology, health care and renewable energy.
It is focused on projects that invest in innovative start-ups, develop strategic industries such as local manufacturing and make it easier to do business in the emirate.
“For the future economic growth of Abu Dhabi, the strategy is very simple: it is how to be as competitive as possible to attract companies, start-ups [and] innovators, and creating the right ecosystem for them here, not only to come and work but to live, retire [and] get more education,” said Mr Al Shorafa.
“This is to enable specific clusters that we believe are important for the growth of Abu Dhabi going forward.”
The Abu Dhabi Investment Office, of which he is also chairman, was launched in 2019 under the Dh50 billion ($13.6bn) Ghadan 21 economic stimulus programme.
