Abu Dhabi is on track to achieve growth targets

Abu Dhabi is on track to achieve its economic growth targets set in Vision 2030, said Mohammed Omar Abdullah, undersecretary, Abu Dhabi Department of Economic Development. “The annual economic growth rate of five to six per cent envisaged in Vision 2030 may not be met this year. It can fluctuate, however, on an average in the next 18-years, the target fixed will be achieved,” he said. Speaking to reporters after opening the Global Investment Forum organised by DED Abu Dhabi and Institutional Investor magazine, he said the economic department was working on the final touches of key important initiatives to further enhance national economic competitiveness. “The ongoing efforts of establishing a dedicated Investment Promotion Agency coupled with setting up a world class Export Promotion Agency are major enablers to fulfill our vision goals,” he told 200 investors and business executives. The UAE’s overall global competitiveness, 27th globally out of 142 economies surveyed, is a product of tangible achievements among key sub-indicators. For example, the country’s high quality of infrastructure, where it captures the 8th position globally, as well as the 10th globally in terms of its highly efficient goods markets, he said. Moreover, UAE’s strong macroeconomic stability comes at the 11th globally, in addition to other aspects of the country’s institutions — such as high public trust in politicians (8th globally) and high government efficiency (5th). Abdullah said the recent FDI growth in agriculture could be traced back to 2008, when food prices hikes paid attention on food security worldwide, signaling a remarkable rise in foreign investments in agri sector. According to the OECD, the UAE, Saudi Arabia, Qatar, China and Korea are among the world major investors in agricultural land. In Abu Dhabi, cross border investments, joined with international trade, have traditionally been a defining characteristic and a principal pillar of the Emirate’s viewpoint with the wider world. Recent statistics show that non-oil GDP captured 50.3 per cent of the emirate’s total GDP, while oil GDP accounted for 49.7 per cent in 2010. Abu Dhabi has set the boosting of FDI as a key priority which will rise to 23 per cent of GDP by 2030. Abu Dhabi stands as a promising hub for investments and partnerships based upon its firm fundamentals, motivated particularly by the government-targeted 10 focus sectors. Abu Dhabi offers a considerable package of incentives to foreign investors and companies wishing to invest in the emirate, making it one of the most competitive investment destinations. In the same context, a recently published report by Economist Intelligence Unit (EIU), entitled Hot Spots, which ranks the most competitive cities in the world for their demonstrated ability to attract capital, business, talent and tourists, according to the report, UAE’s two major sisters cities Abu Dhabi and Dubai are ranked as the most competitive cities in the Middle East.