But new industrial sectors to be ventured upon are metals; aviation, aerospace and defence; pharmaceuticals, biotechnology and life sciences; tourism; healthcare equipment and services; transportation, trade and logistics; education; media; and telecommunication services.

The new economic vision has been developed as the emirate had a $21 billion non-oil deficit in 2006, although it has a healthy trade deficit.

The targeted 7.5 per cent growth anticipated with the economic diversification should help Abu Dhabi achieve a neutral non-oil trade balance.

Energy

Abu Dhabi which has exceptionally low production cost aims at the global hydrocarbon market with expected revenue of $2.15 trillion and a profitability of 15 per cent. Abu Dhabi will reap opportunities in exploration, production, refining and energy transport.

By next decade, oil output will reach 3.5 million barrel per day (bpd ), as existing facilities are being redeveloped, as well as fields that had not been placed under production before.

TAKREERTAKREER and International Petroleum Investment Company (IPIC)International Petroleum Investment Company (IPIC) are pursuing new refining projects to triple existing capacity of 485,000 barrels per day. IPICIPIC is aggressively investing in the refining facilities in Asia, North Africa, and Europe.

Abu Dhabi which has a large fleet of oil and LNG tankers, is Investing in oil and gas transportation infrastructure by constructing a 1.5 million barrel per day pipeline to Fujairah, which will allow for significant oil exports outside of the Straits of Hormuz.

Petrochemicals

This industry is expected to produce an economic output of $1.350 trillion in 2007 and is growing at 4 per cent a year, with 17 per cent profitability. With its large reserves of natural gas and associated liquids, Abu Dhabi is well positioned to increase its exposure to this sector.

The emirate has approved a massive expansion of its petrochemicals industry owned and operated by Borouge,Borouge, which produces 600,000 tonnes of ethelyne  and  580,000 tonnes of polyethelyne per annum will complete Borouge-2 project in late 2010. Once completed it will be world's largest ethane crackers unit producing 1.4 million tonnes per annum.

The complex will also be the world's largest olefins conversion unit; a 540,000 tonnes per year polyethylene plan and two 400,000 tonnes per year polypropelyne plants.

Abu Dhabi's Ruwais Fertiliser Company is expanding its urea production from 1800 tonnes per day to 2700 tonnes per day.

Media

Large investments will be made in media development, including electronic media, in the coming years, leading to a number of gains for the broader economy, including the creation of jobs for highly-qualified workers and diversification into a sector that is not dependent on natural resources.

Enabling Sectors

In order to develop these focus sectors, Abu Dhabi is also enhancing other domestic industries, which will act as enablers, particularly construction and engineering, machinery, electrical equipment, construction materials, and food and beverages.

Each of the "engine" sectors requires supply or support from at least one of these enabler industries.

© Khaleej Times 2009

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