Font Size

- Aa +

Tue 3 May 2011 03:16 PM

Font Size

- Aa +

Abu Dhabi sees 2011 economic growth at 4.5%

UAE's capital plans to increase its economic output by an average of 7 percent a year until 2015

Abu Dhabi sees 2011 economic growth at 4.5%
ECONOMY WATCH: Abu Dhabis economy is expected to grow by 4.5 percent this year, below government plans (Getty Images)
Abu Dhabi sees 2011 economic growth at 4.5%
Abu Dhabi Investment Authority

Abu Dhabi's economy is expected

to grow by 4.5 percent this year, below government plans, while

inflation in the Gulf Arab emirate should hold at around 3

percent, a government official said on Tuesday.

Abu Dhabi, the capital of the UAE, plans to

increase its economic output by an average of 7 percent a year

until 2015.

"There are many factors that will drive growth. Industry,

tourism," Mohammed Omar Abdullah, undersecretary at Abu Dhabi's

Department of Economic Development, told reporters at an

investment forum.

The emirate accounts for more than 60 percent of annual

gross domestic product of the UAE, the world's third largest oil

exporter.

Analysts polled in March forecast the UAE's

economy would expand 3.4 percent in 2011, faster than an

estimated 2.2 percent in 2010 as its trade hub Dubai emerges

from debt troubles.

Abdullah also said he expected the rise in Abu Dhabi

consumer prices to hold at around 3 percent this year.

"Inflation is controllable and we have a mechanism to deal with

the situation," he said.

Annual inflation in the emirate, which has 10 percent of the

world's oil reserves, had been edging higher over the past year.

It peaked at 4.1 percent in November and October last year

before slowing to 1.9 percent year-on-year in March from 3.1

percent the previous month.

Abu Dhabi plans to set up an export promotion agency in the

second half of the year, Abdullah also said, as well as a

competitiveness office to establish rules and regulations for

opening businesses.