Individuals trust indicator regarding the current situations showed increase during the second quarter of 2012 reaching 111 points reflecting optimism in the emirate, compared to pessimism levels during the same period of 2011.
Regarding private sector investment, the projects that Abu Dhabi declared will give a great push in investments in the emirate. Forecast, in this respect, indicate increase in investment rate during 2012 (real prices) with 11.3% which will go on to reach 8.7% on the average during 2013 ? 2016 along with the investor's confidence in the emirate economy endeared by the government efforts to strengthen business competitive atmosphere in order to create an open, interactive and globally integrated business environment according to 2030 vision. Regarding government finance, government subsidies for the economy and the ability of that economy to face challenges, the report lauded the efficiency of Abu Dhabi government in handling the consequences of the global financial crisis, specially in 2009. The government motivated the overall demand in the emirate by means of government investment expenditure, making use of oil revenues surplus that resulted from oil price hike. The report expected the continuation of that attitude from the government during 2012-2016 and redirecting the expenditure in line with the economic vision 2030, in the favor of fortifying the interest of socially motivated projects such as education, environment, infrastructure etc. that boost luxury for all residents either expats or locals. The report said that that reflects the insistence of the government to provide luxury and splendid life for the people, as lauded by great international institutions, leaving UAE in the forefront in the international human development report 2011among Arab countries for the second consecutive years, and 30th globally. As for exports, forecasts indicate that overall exports witnessed 30% increase (real prices) during 2012. Such a growth will increase in line with the improvement of world economic situations and increase of oil demand as shown in the following figure. Exports growth rate will raise up to 7.9% during 2013-2016 on average. According to the report, the general index of business atmosphere during the second quarter of 2012 (June) witnessed an increase compared to the first quarter (March 2012) with (1) point to jump from 55 to 56 points which reflects optimism of the economic establishments in their look at Abu Dhabi as a secure heaven for investment, as the country enjoys security and stability. The report referred to the incessant efforts exerted by the Department of Economic Development to boost foreign trade and promote for Abu Dhabi economy in the world great circles. As for imports, the forecasts predict a 6.1% hike during 2012 in line with the increase of family consumption levels and growth of private and government investment, and continuing rise of growth rates reaching up to 6.3% during 2013-2016The reports asserted the ability of Abu Dhabi government to fortify the attitude towards knowledge economy, diversification by means of encouraging converting industry private investment. In this respect, the report mentioned that the Executive Council approved the set up of two new industrial cities, one in Ruwais, the other in Madinat Zayed, reflecting the keenness of the government for achieving balanced development by encouraging the investment in the Western region in order to qualify that region to adopt other industries rather than oil. Forecasts refer to the leading sectors as continuing to play their role in motivating the emirate's economy during 2012-2016. Construction sector is the leading sector specially in light of that huge package of development projects that the government declared last February. The report expects that converting industries sector will have a wider role in GDP, in line with the inception of implementing the industrial plan that will focus on technological and export industries in which Abu Dhabi enjoys promising advantage, resulting in impressive increase in non-oil exports. Add to that the inauguration of new industrial zones in 2012. The report also asserted that converting industries sector is a point of interest as an important leading sector for the leadership. That sector is considered a main corner in achieving economic diversification and turning into knowledge economy, as stated in Abu Dhabi economic vision 2030 that comprised a number of strategic sectors as main engine for the development and economic diversification in the emirate such as petrochemicals, aerospace, defense, pharmaceuticals, biotechnology and biology. The report predicts that converting industries sector will witness tangible growth during 2012-2016, following the completion of the first industrial strategy for the emirate of Abu Dhabi, which took in consideration all various strategies for the upsurge of this sector and how to surpass the challenges. The report referred to the recent directives from the Executive Council for approving setting off for building and improving the industrial cities. Such cities include vehicle park as a very important economic development project in the Western region. The report also referred to the council's support for Khalifa Fund for Projects Development in order to develop mid and small size project for the citizens. The report also spoke about setting up two new industrial cities, the first in Ruwais to motivate chemicals, petrochemicals, plastics, oil and gas services, cement and building materials industries. The second in Madinat Zayed that mainly targets oil and gas services, food stuff and logistics industries. Setting those cities is expected to start during 2012. The report expects that such a sector will see 5.2% growth rate during 2012 and 7.1% during 2013-2016, in the light of government policies for attracting more investors on one side and giving subsidies on the other. The report said that construction sector is a leading one for the economy of Abu Dhabi during the past years. This sector achieved real growth rates from 2005 to 2010 mounted to 20.4% average. The report sees that this sector will continue boosting the economy with 11% growth and during 2012 it may reach 12% average. The report said that such expected growth comes in line with a package of development projects such as housing projects and community facilities by means of re-qualifying the infrastructure for a number of housing areas. There is another package of infrastructure projects of roads, sanitary drainage, marine and air transport, education and healthcare to support development plans in the emirate. As for tourism in Abu Dhabi, the report said it has achieved annual record results during 2011. Such progress is expected to reach 7.5% during 2012-2016. Such sector is important in achieving economic diversification according to 2030 economic vision. As for personal and social services sector, the report said that such sector received the highest interest of the government in order to properly provide the community with the services needed. Healthcare sector is a leading one in economic development according to 2030 vision. This sector includes pharmaceuticals, and medical equipment that help in economic development. The Executive Council, within that vision, approved recently a number of healthcare projects for setting up 14 facilities in order to secure high level of services. Education took a special priority according to 2030 vision, as education is a corner stone of achieving more human development in line with transformation into knowledge economy. The report also said, in this context, that the Executive Council approved all projects offered by Abu Dhabi Educational Council in order to boost such a sector that is expected to grow with 7% during 2012-2016. The report is divided into three main chapters. The first is about the global future economic horizons; showing analytical view for the global economy depending on international recent periodicals and publications. The second chapter is about the most important forecasts for the UAE economy as reflected in international reports. The third chapter is about the horizons of Abu Dhabi economy 2012 ? 2016 comprising the most important hypotheses that shape the economicforecasts of the emirate; either globally, regionally or locally. The report also considered the opinion polls results on development indicators, as done by the Department. Then it offered the most important economic forecasts for the emirate of Abu Dhabi including economic (oil and non-oil) real growth rates, as well as GDP components such as family consumption, private investment, and foreign trade. It also displayed inflation and growth rates in the various economic sectors and activities as expected in the emirate.Copyright Emirates News Agency (WAM) 2012.
