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Abu Dhabi GDP to hit $300bn by 2025
Abu Dhabi’s gross domestic product (GDP) is forecast to triple in value to $300 billion by 2025, according to research by the emirates’ Department of Planning and Economy (DPE).
The DPE report, carried by state news agency Wam on Saturday, revealed Abu Dhabi’s non-oil sector would contribute 60% of the emirates’ GDP by 2025 while the oil sector would offer 40%.
Oil and gas revenues currently represent about 35% of GDP, 80% of government revenues and 90% of total exports, the DPE said.
The report said Abu Dhabi was “faring steadily” into the future under strategic plans aiming at a radical transformation in its economic structure.
”During the last five years [the] Abu Dhabi economy witnessed the strongest, broadest and highly diversified-ever development as a result of high oil prices at international markets," it said.
The report said Abu Dhabi’s GDP will rise to $170 billion in 2015, of which the oil sector will constitute 50% and the non-oil sector 50%.
“But the non-oil sector will overtake the oil sector percentage in Abu Dhabi GDP, which will surge to $230 billion by 2020 as [the] oil sector is projected to be only 45% of Abu Dhabi GDP, while [the] non-oil sector will surge to 55% of GDP," the report said.
"By 2025 Abu Dhabi GDP will jump to $300 billion, of which [the] non-oil sector will be 60% of GDP, while [the] oil sector will be 40 per cent.”
The DPE said the emirate’s stable business environment, cash surplus, highly developed infrastructure, political stability and security has seen Abu Dhabi’s economy become one of the leading and fast-growing economies in the Gulf.
This has a positive response on various economic sectors, which maintained an average annual growth rate of 18%, it said.
”With oil prices soaring, 500 billion dirhams in projects underway, open-door policy, liberal economy and reform programmes, privatisation, series of bilateral partnerships with foreign countries, Abu Dhabi's economy is forecasted to grow steadily,” the report continued.
However, the DPE warned challenges remain on how to increase projects, diversify the economy and counter inflation.
Solutions are also required to address the lack of UAE nationals working in the industrial sector, it added.
“Ministry of Finance and Industry statistics show that nationals working in the industrial sector represent only 2% of total manpower in a sector we heavily depend on in building modern economy," the report said.
"Industrial sector GDP share stands at 13% and expatriate workers in this sector come to 260,000 UAE-wide. This means that the national element is a missing link in this sector, where practical steps are required to solve this problem."
The Abu Dhabi government is currently moving toward building a self-reliant economy removed from the negative aspects of volatile oil revenues and fluctuations of share and real estate markets, the report noted.
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