TOMORROW 2021: THE ABU DHABI BLUEPRINT FOR ECONOMIC GROWTH
Dh20bn to be spent next year as part of overall stimulus package Crown Prince reveals dramatic results of three-month action plan Fifty initiatives ‘reflect priorities of citizens, residents and investors’
Abu Dhabi’s drive to accelerate its economic growth will come under the banner of Tomorrow 2021, the Crown Prince revealed yesterday, in what marks the culmination of a summer of reforms aimed at preparing the emirate for a more prosperous future.
Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, said the plan includes “50 initiatives that reflect the priorities of citizens, residents and investors”.
The move is part of an action plan to generate a vision of the future economy in a post-oil world that aims to stimulate investment, create jobs, spur innovation and improve the overall quality of life in the emirate.
Government officials were set a 90-day deadline on June 5 to put in motion wide-ranging economic reforms ordered as part of a Dh50 billion stimulus package over three years.
“We have approved a threeyear, Dh50 billion budget for the Abu Dhabi Government Accelerators Programme ‘Ghadan 21’,” the Crown Prince wrote on Twitter.
“Dh20 billion will be allocated to the 2019 development package.
“The aim of ‘Ghadan 21’ is to enhance the competitiveness of Abu Dhabi, based on four main tenets – business and investment, society, knowledge and innovation, and lifestyle.
“The first phase includes over 50 initiatives that reflect the priorities of citizens, residents and investors.
“We have commissioned the launch of the first phase of ‘Ghadan 21’ with the aim of improving the business environment. We are confident in the success of ‘Ghadan 21’ and of our partnerships with the community and business sector.”
In recent months, a series of changes have been unveiled in tandem with the Dh50bn in planned spending, from allowing start-ups to launch without a physical address to making it easier for free-zone businesses to trade onshore.
Tajer Abu Dhabi’s “golden package” – which allows companies to reduce costs by letting them obtain licences to trade without a physical office – is being expanded to Gulf nationals and UAE residents, for example.
At the same time, sweeping changes to the country’s immigration system were announced by the Cabinet, making key workers such as doctors
and engineers, and their families, eligible for long-stay visas of up to 10 years. Sheikh Mohammed yesterday set out four economic objectives to prepare the emirate for the future, national news agency Wam reported.
The first is to stimulate business and investment. It promotes economic development in the private sector and small businesses, and supports industry projects for the renewable energy sector.
The second will ensure the employment of UAE nationals, with quality education at a reasonable cost and new housing projects to ensure citizens are well provided for.
The third focuses on developing the knowledge sector by encouraging technology companies, research and development, and talent.
The fourth goal is to enhance the quality of life in Abu Dhabi, by improving recreational, cultural and sporting initiatives, as well as infrastructure in the areas of transport, communication and urban development.
Analysts said investment in the public sector will also boost private companies.
“Any time the government starts to expand its spending you will start to see stronger growth,” said Tariq Qaqish, head of asset management at financial services group Menacorp.
“This is an additional budget in effect and it is not an insignificant amount. The question now is exactly which sectors will be invested in. This has to be done quickly to bring back confidence.
“Companies in Abu Dhabi have had to lay off people and there has been a knock-on effect on property prices, and occupancy and so on.”
Emirati businessman Hamad Al Junaibi, who runs a fitness business, said the cash injection will strengthen Abu Dhabi’s economy and shore up confidence.
“It will encourage more people to invest in business here, especially since we are going through a critical situation with regards to oil prices, worldwide,” he said.