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Although the emirate’s economic growth can be primarily attributed to its vast hydrocarbons resources, it has also made progress diversifying into new sectors such as manufacturing, tourism, aerospace, defence, finance and logistics. In addition to its economic investments, Abu Dhabi has also made major contributions to social welfare as well as infrastructure, which has been identified as the bedrock for future growth. The government has played a key role in the expansion of the security, aerospace and defence industry over the past decade in an effort to strengthen the UAE’s defence capabilities and as a means of boosting economic diversification. Despite challenges such as a high level of regional competition, most local defence and aviation firms expect to see continued expansion for years to come. The evidence suggests that the emirate has succeeded in nurturing new economic sectors and is on track to meet its goals. The oil and gas sector accounted for 56.5% of Abu Dhabi’s GDP at current prices in 2012, followed by construction (9.6%), manufacturing (5.9%) and real estate (4.4%).
2013 saw the transition of power from the former Emir, Sheikh Hamad bin Khalifa Al Thani, to Sheikh Tamim bin Hamad Al Thani, his fourth son and second son with Sheikha Moza bint Nasser, a move unprecedented elsewhere in the Gulf but not unexpected in Qatar. With sustained, long-term economic growth, the highest per capita income in the world, a stable and well-capitalised banking sector, a sovereign wealth fund that is of true global significance and one of the largest reserves of natural gas just offshore, Qatar today has many advantages. It is clear that the country is in a strong position from which to continue its robust economic performance, and the years ahead will see a vast construc...
The sultanate’s economy continues to enjoy the benefits of petroleum wealth, which has provided budget surpluses in most years and served as a backbone for growth. However, planning is well under way for an era in which oil will not be the main economic driver, with the twin goals of diversification and creating an increased number of private sector jobs at the top of the government’s current agenda. Indeed, in recent years, the non-OPEC oil exporter’s economy has been undergoing a steady transformation, reorienting from oil toward a more diverse set of service and industry-based economic activities. So far, progress has been promising. In 2011 oil and gas accounted for 38.8% of GDP. With the continuation of higher-than-expected energy prices in 2012, the government has increased economic investments accordingly. These investments, which include infrastructure, social programmes and small-business development, are aimed toward better preparing the country for its post-fossil fuel future.