Abu Dhabi expects economic growth in H2

GROWTH PREDICTED: Abu Dhabi officials expect to see the economy grow in the second half of 2009 and through 2010. (Getty Images)

Abu Dhabi said on Sunday it expected to see growth in the second half of the year and that growth in 2010 could reach double digits.

Abu Dhabi said in January it was aiming for seven percent annual economic growth through to 2015 by developing its non-oil sector.

"Growth in the near-term is going to happen," Ahmad Abu Ghaida, acting director of economic planning at the Abu Dhabi Department of Economic Development told a news conference.

"We have not seen a contraction, but growth is going to continue very soon. We expect to post growth in the second half of 2009 and 2010," he said.

“I wouldn’t be surprised if we see double digit growth in 2010 and 2011. It’s highly possible,” said Abu Ghaida.

Real estate will be a key growth sector in Abu Dhabi in the short to medium term, due to the current undersupply, he said.

But going forward, other sectors will increasingly underpin growth.

These include Masdar’s push into renewable energy, the aluminium smelter complex being built by a Mubadala backed joint venture and expansion plans at The Abu Dhabi Ports Company and Abu Dhabi Airports Company.

Holding more than 90 percent of the UAE's oil reserves, Abu Dhabi wants to wean its economy away from relying on volatile oil export revenues.

Oil prices have slumped from a July peak above $147, putting the brakes on a regional economic boom and casting doubts about the Gulf's ability to finance future expansion projects.

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