Abu Dhabi’s GDP to grow at 3% this year on policy boost
GOVERNMENT’S DIVERSIFICATION DRIVE ELICITS POSITIVE IMPACT — OFFICIAL
Abu Dhabi’s overall GDP (gross domestic product) in 2019 is expected to grow by 3 per cent at constant prices with nonoil growth projected at 3.9 per cent, a top official of Abu Dhabi’s Department of Economic Development told Gulf News.
“Abu Dhabi’s economy showed further improvement by the end of 2018, and growth has strengthened somewhat as a result of policies taken by the government to boost economic growth. Our forecast shows that this improvement will continue in 2019,” said Rashed Abdul Karim Al Beloushi, undersecretary of the Abu Dhabi Department of Economic Development.
Different sectors, including manufacturing, tourism, transportation and storage, information and communication, finance and insurance, and media, are expected to perform well to boost the economy.
Growth in FDI
In 2020, non-oil activities will continue to improve with growth projected at 4.1 per cent driven by faster growth in manufacturing (4 per cent), transportation and storage, information and communication (7.4 per cent), accommodation and food services activities (7.4 per cent), financial and insurance activities (4.5 per cent). ■
“The fast growth expected over the next few years will attract and enhance the growth of foreign direct investment over all economic activities, open up the growth of non-oil trade exports and increase the contribution of private sector to the economic growth.”
The comments come as the government takes new measures to diversify the economy away from oil and boost non-oil growth with heavy investments in different sectors, including infrastructure, is the projected growth in non-oil activites in 2020 tourism and industries.
In early June 2018, the Abu Dhabi government announced a stimulus package of Dh50 billion for the next three years to encourage foreign investment and improve the business environment.
Abu Dhabi currently derives 50 per cent of its real GDP and more than 90 per cent of central government revenue from the hydrocarbon sector, including oil taxes and royalties and dividends from Adnoc. Abu Dhabi’s non-oil foreign trade during the first quarter of 2019 reached Dh51.8 billion, an increase of 3.1 per cent compared to Dh50.2 billion during the same quarter of 2018, according to the latest figures released by Abu Dhabi Statistics Center.
The growth in Abu Dhabi’s non-oil trade was supported by the re-export activity during the quarter, which rose to Dh13.1 billion, an increase of 37.7 per cent compared to Dh9.5 billion in the same period last year.
However, in the first quarter the emirate’s imports declined to Dh24.2 billion, down 7.7 per cent compared to Dh26.2 billion in the first quarter of last year, while the value of exports amounted to Dh14.449 billion in the first quarter of 2019 with industrial supplies amounting to Dh11.246 billion or 77.8 per cent of the emirate’s total exports.
The value of food and beverages exported amounted to Dh1.7 billion and Dh777 million for exports of consumer goods during the first quarter of this year. The balance in exports is related to fuel and lubricating oil and transport equipment.
—