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Wednesday, 13 April 2011 00:01 - - {{hitsCtrl.values.hits}}
Abu Dhabi plans to grow by an average of 7 percent a year until 2015 and 6 per cent a year thereafter, supported by economic diversification and a reduced dependence on oil, a bond prospectus showed on Monday.
The capital of the United Arab Emirates, which accounts for most of the country’s oil wealth, would expand at total growth in gross domestic product (GDP) of over 500 per cent by 2030, a prospectus by Abu Dhabi’s investment vehicle, Mubadala, seen by Reuters showed.
‘The 2030 Economic Vision seeks to grow Abu Dhabi’s GDP by an average of seven percent per annum through 2015, and thereafter to stabilise growth at an average of six percent per annum for total growth in GDP of over 500 per cent by 2030,’ the document said.
Unlisted Mubadala held investor roadshows in Abu Dhabi and Dubai on Sunday as it plans to invest around 60 billion dirhams ($16.3 billion) in 2011.
In 2009, the Abu Dhabi government set up a long-term plan to turn the emirate into a knowledge-based economy and reduce its dependence on the oil sector.
Its 2030 Economic Vision aims to significantly expand the non-oil sector by 2030 to reach a balance between oil and non-oil trade by 2028.
‘The government also intends to foster non-oil GDP growth at a higher rate than that of the oil sector, with a goal of reaching equilibrium in oil and non-oil trade by 2028,’ the prospectus said.
‘This growth is not expected to be consistent throughout the period, as different economic cycles and the fluctuation in oil prices will mean that rates of growth will vary from time to time.’
The economic vision focuses on 12 sectors for future growth, such as oil and gas, aviation, tourism and transportation.
The UAE has escaped public unrest sweeping the Arab world, which had also spread to nearby Bahrain, Oman and Yemen.
Worried by the turmoil, the UAE pledged to spend $1.6 billion on infrastructure, keep prices of basic commodities low and raise military pensions. Plans to further cut fuel subsidies were also postponed, industry sources have said.
