Rashed Al Balooshi, Undersecretary, The Abu Dhabi Department of Economic Development (ADDED) • Interview
The government of Abu Dhabi with the help of ADDED is working to support innovators and the continuity and sustainability of the economy.
“We have a clear strategy to have an economy based on knowledge and sustainability.”
How does the current crisis enhance the Emirate’s resiliency for future shocks and assure the investors and organizations doing business in the country?
What makes Abu Dhabi unique is a clear strategy with clear objectives, projects, and the ability for all stakeholders, be they the government or the private sector, to work together side by side at the same rhythm to reach the objectives of the entire Emirates. Today, Abu Dhabi is ranked 12th in the ease of doing business, and the financial ranking of Abu Dhabi is seventh globally. These are positions and achievements for Abu Dhabi and investors to rely on and think about. When the global economy slowed down, we looked into the opportunities available and invited foreign investors to join us. We have specified each sector with the sub-sectors, and these are available for any opportunity. For example, for the manufacturing of food we have eight strong initiatives awaiting investors in or outside the UAE to take advantage of. We have 14 initiatives related to healthcare and nine different initiatives related to energy and water. These are study cases available for any opportunity to be taken by any local or foreign investors.
Where do you see Abu Dhabi today in taking an innovative approach to new sectors and diversifying the economy?
We have a clear strategy to have an economy that is based on knowledge and sustainability. As a government, there are different sectors supporting innovators to create a big ecosystem and support the continuity and sustainability of the economy. We do have financial and non-financial support. Hub71 is a host for any ideas surrounded by technical and financial support, advisors, and all means for that innovative idea to be developed, explored, and become big enough. Fintech is hosted in ADGM’s environment, which is heavily concentrated on developing fintech. We have Masdar, which works on the green initiatives that Abu Dhabi is trying to achieve. We have different universities to provide research, support, and information. We have an entity that gathers data and makes it available. Then, to make it easy for investors, we have issued the Golden Visa, a long-term visa for innovators. All they need to think about is how to come up with innovative services and products, and here is where Abu Dhabi is a great opportunity for such innovators.
What are the immediate priorities for ADDED in the next six months?
Our main priority is to ensure that the private sector, especially SMEs, are protected. The private sector was one of our first priorities, and Abu Dhabi has a clear strategy to diversify its economy away from oil via the industrial sector. We have both the logistics infrastructure and the technology to further develop our industrial sector. In the last six months, we have seen 29 new industrial licenses issued to take advantage of the available opportunities. These have injected AED2.6 billion, and this is the result of years of hard work. When it comes to industry, some require more investments. To encourage such investments, we have introduced two key programs. One is called In-Country Value, where we have a formula that has a special calculation to see how much of that money goes back into the system and cycle of the economy. This would encourage more big companies to support medium-sized companies that will in turn support small companies as a large ecosystem. The other program we have introduced is an electricity tariff, whereby we provide incentives to the industrial sector for innovative ideas to reduce electricity consumption and increase their production. This goes back again to an innovative knowledge-based economy.