Abu Dhabi’s bid to steer its economy away from a reliance on hydrocarbons by shifting the focus to knowledge-based segments of the economy and high value-added industries, is mapped out in a new report from the global research and consultancy firm Oxford Business Group (OBG).
The Report: Abu Dhabi 2019 examines the key role that downstream segments, including petrochemicals and plastics, are playing in generating new growth, as part of the emirate’s diversification drive. It also looks in detail at the expansion under way in energy-intensive manufacturing, led by the steel and aluminium components.
In addition, OBG’s report shines a spotlight on the aerospace, defence and security industries, which combined, represent an integral component of the emirate’s long-term strategy, Abu Dhabi Economic Vision 2030.
Alongside its raft of downstream projects, Abu Dhabi is pursuing several new initiatives in non-conventional hydrocarbons. OBG’s report examines the emirate’s plans to foster new links with global partners to drive these plans forward, while providing coverage of Abu Dhabi National Oil Company’s landmark first competitive exploration tender.
Hopes of carving a niche as a major transit hub have spawned a long list of transport projects within the emirate. The Report: Abu Dhabi 2019 tracks the progress of these initiatives, which include major road upgrades, aimed at easing congestion, and new port facilities.
The emirate’s expanding tourism industry is another focus. OBG charts the key part that new attractions, such as the Louvre Abu Dhabi, have played in boosting visitor numbers, while also documenting its plans to tap new niche markets, such as the cruise, medical and ecotourism segments.
The Report: Abu Dhabi 2019 contains an interview with Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affair, together with a detailed sector-by-sector guide for investors.
It also features a wide range of interviews with other high-profile personalities, including: Sheikh Hamdan bin Zayed Al Nahyan, Ruler’s Representative in the Al Dhafra Region; Saif Mohamed Al Hajeri, Chairman, Abu Dhabi Department of Economic Development; Khaldoon Khalifa Al Mubarak, Group CEO and Managing Director, Mubadala Investment Company; and Ahmed Ali Al Sayegh, Chairman, Abu Dhabi Global Market.
Commenting ahead of the launch, OBG’s Editor-in-Chief Oliver Cornock said that a reduced reliance on hydrocarbons, combined with the decision to invest in nascent areas of the economy, had enabled Abu Dhabi to weather the storm of lower oil prices in recent years and achieve healthy GDP growth, which the IMF predicts will reach 2.7% in 2018 and 3.4% in 2019.
“Against this backdrop, our analysis looks at the steps that Abu Dhabi is taking to consolidate government spending, strengthen fiscal policy and return the budget to surplus,” he said.
The Group’s Managing Director for the Middle East, Jana Treeck, added that a major stimulus package aimed at encouraging private sector expansion and boosting inward investment were expected to play a key role in the next chapter of Abu Dhabi’s growth story.
“Abu Dhabi already offers investors an attractive environment in which to do business,” she said. “With its strong regulatory framework now supported by a growing number of financial services offerings, the emirate is well positioned to secure new inflows for its wide-ranging investment portfolio.”
The Report: Abu Dhabi 2019 marks the culmination of more than 12 months of field research by a team of analysts from Oxford Business Group. The publication assesses trends and developments across the emirate, including those in macroeconomics, infrastructure, banking and others.
The Report: Abu Dhabi 2019 has been produced with First Abu Dhabi Bank, PwC and Reed Smith. It is available online and in print.