Abu Dhabi to embark upon an ambitious US$175 billion diversification programme
Abu Dhabi’s ambitious diversification programme from its reliance on hydrocarbons reserves is well under way and will take place in the form of public-private partnerships, with developments, encompassing tourism, energy, real estate and social programmes, according to The Report: Abu Dhabi 2007, the English language economic and political review of the emirate.
Created by Oxford Business Group (OBG), the UK-based publishing, research and consultancy services company, the book’s findings will be published this July in the much anticipated The Report: Abu Dhabi 2007.
Although the basis of the emirate’s economic strength remains its considerable oil and gas reserves, the next year will see a large number of projects coming online.
“Abu Dhabi, has embarked on a US$175 billion plan to be executed over the period between 2007 and 2012,” said Tatjana Marinko, OBG’s Regional Director for the GCC.
“State organizations and spin-offs such as Mubadala Development and the Tourism Development & Investment Corporation will act as project integrators and strategic investors, while at the same time inviting interest from foreign investors.”
One of the Emirati capital’s initiatives towards diversification is the launch of the Industrial City of Abu Dhabi and the Khalifa Port and Industrial Zone. The projects have been major drivers of industrialization, and, with almost half of the US$25.5 billion project cost coming from private sources, the industrial zones have proved a major contributor to the emirate’s non-oil exports. The creation of further zones should reinforce this trend, with clusters being set up for petrochemicals, plastics, aluminium, steel and glass.
The second fastest growth sector has been financial services, while the largest planned investments have been in real estate, especially the project on Saadiyat Island, a US$27 billion project in three phases to create a mixed-use development that will be the cultural hub for the region.
“Abu Dhabi has achieved international status as a major player in the culture and arts scenes while creating a more economically diverse infrastructure,” said Ms Marinko.
Tourist development, led by the Abu Dhabi Tourism Authority, is an integrated project that oversees the expansion of Etihad Airways, the local airport and the emirate’s hotel infrastructure, scheduled to accommodate an additional 4500 rooms over the next three years, allowing Abu Dhabi to capture some of the growing regional traffic.
The Report: Abu Dhabi 2007 is produced by OBG analysts who work with top industry specialists to create the most comprehensive and accurate report available for the emirate. The 2007 edition, following the previous year’s well received edition, provides the latest trends and developments to an extensive base of business subscribers.