Current policy of diversification of economy and sources of income will help Abu Dhabi reduce share of oil and gas sector to its Gross Domestic Product (GDP) to under 20 per cent by 2050 despite the great developments taking place in that sector, a local economic analyst predicts.
”The Emirates of Abu Dhabi will take advantage of the stellar performance of the hydrocarbons sector to provide greater support for economic diversification drive in the energy industry by upgrading and boosting output capacity, increase valu added exports and establish new industries,” Dr. Ahmed Menawi, economic expert, Abu Dhabi Department of Economy and Planning, said Tuesday during a lecture on ”Economic Development in Abu Dhabi : Opportunites and Challenges”.
”Abu Dhabi’s GDP is set surge to AED 650 billion ($ 179 bn) at current prices by 2010, pushing Abu Dhabi to become the second largest economy in terms of size after Saudi Arabia,’ he said, expecting the GDP to grow four times to $ 315 bn by 2025 and GDP per capita to cross the 2007 mark of $ 71,200, the second highest rate worldwide.
He indicated that projected high world oil demand in the long run vis-a-vis declining supplies had motivated Abu Dhabi to channel huge funds for boosting output capacity of the oil sector which still remains the main engine for economic growth not only in Abu Dhabi but also in the UAE at large.
”Given the vibrant growth in non-oil sectors, high oil revenues and strong investor’s confidence, Abu Dhabi is expected to maintain its dynamic economic performance for the next years, Menawi added.
The lecturer highlighted the vital role of the private sector in the economic development.
”This role is now dictated in the first place by international considerations and transformations. No one in the world of today has an option to swim against the tide of economic globalization which calls for forging a strategic economic partnership between the public and private sectors whose main goal is to serve development objectives and interests of both parties,” he maintained.
WAM
