Economy
The UAE’s large hydrocarbon wealth gives it one of the highest GDP per capita in the world and Abu Dhabi owns the majority of these resources – 95% of the oil and 6% of gas. Abu Dhabi thus holds 9% of the world’s proven oil reserves (98.2bn barrels) and almost 5% of the world’s natural gas (5.8 trillion cu metres). Oil production in the UAE was in the region of 2.3m barrels per day (bpd) in 2010, and projects are in progress to boost production to 3m bpd. In recent years the focus has turned to gas as increasing domestic consumption for power, desalination and reinjection of gas into oil fields increases demand. Gas extraction is not without its difficulties, however, as demonstrated by the sour gas project at Shah where the gas is rich in hydrogen sulphide content and is expensive to develop and process.
Recently the government has been diversifying their economic plans. Served by high oil prices, the country’s non oil and gas GDP has outstripped that attributable to the energy sector. Remarkably, non oil and gas GDP now constitutes 64% of the UAE’s total GDP. This trend is reflected in Abu Dhabi with substantial new investment in industry, real estate, tourism and retail. As Abu Dhabi is the largest oil producer of the UAE, it has reaped the most benefits from this trend. It has taken on an active diversification and liberalisation programme to reduce the UAE’s reliance on the hydrocarbon sector. This is evident in the emphasis on industrial diversification with the completion of free zones, Industrial City of Abu Dhabi, twofour54 Abu Dhabi media free zone and the construction of another, ICAD II, in the pipeline. There has also been a drive to promote the tourism and real estate sectors with the Abu Dhabi Tourism Authority and the Tourism and Development Investment Company undertaking several large-scale development projects. These projects will be served by an improved transport infrastructure with a new port, an expanded airport and a proposed rail link between Abu Dhabi and Dubai all in the development stages.
Abu Dhabi is the wealthiest emirate of the UAE in terms of Gross Domestic Product (GDP) and per capita income. More than $1 trillion is invested worldwide in this city alone. In 2010, the GDP per capita also reached $49,600, which ranks ninth in the world after Qatar, Liechtenstein and Luxembourg and many others. Abu Dhabi is also planning many future projects sharing with the Cooperation Council for the Arab States of the Gulf (GCC) and taking 29% of all the GCC future plannings. The United Arab Emirates is a fast-growing economy: in 2006 the per capita income grew by 9%, providing a GDP per capita of $49,700 and ranking third in the world at purchasing power parity. Abu Dhabi's sovereign wealth fund, the Abu Dhabi Investment Authority (ADIA), currently estimated at US$ 875 billion, is the world's wealthiest sovereign fund in terms of total asset value. Etihad Airways maintains its headquarters in Abu Dhabi.
Abu Dhabi's government is looking to expand revenue from oil and gas production to tourism and other sorts of features which would attract different types of people. This goal is seen in the amount of attention Abu Dhabi is giving to its International Airport. The airport, in 2009, experienced a 30%+ growth in passenger usage. This idea of diversification of the economy is also seen in the Abu Dhabi Economic Vision 2030 planned by the Abu Dhabi Urban Planning Council. In this plan Abu Dhabi's economy will be sustainable and not be dependent on any one facet or source of revenue. More specifically the non-oil portion of income is planned to be increased from about 40% to about 60%.
Read more about this topic: Abu Dhabi
Famous quotes containing the word economy:
“Wise men read very sharply all your private history in your look and gait and behavior. The whole economy of nature is bent on expression. The tell-tale body is all tongues. Men are like Geneva watches with crystal faces which expose the whole movement.”
—Ralph Waldo Emerson (1803–1882)
“The aim of the laborer should be, not to get his living, to get “a good job,” but to perform well a certain work; and, even in a pecuniary sense, it would be economy for a town to pay its laborers so well that they would not feel that they were working for low ends, as for a livelihood merely, but for scientific, or even moral ends. Do not hire a man who does your work for money, but him who does it for love of it.”
—Henry David Thoreau (1817–1862)
“I favor the policy of economy, not because I wish to save money, but because I wish to save people. The men and women of this country who toil are the ones who bear the cost of the Government. Every dollar that we carelessly waste means that their life will be so much the more meager. Every dollar that we prudently save means that their life will be so much the more abundant. Economy is idealism in its most practical terms.”
—Calvin Coolidge (1872–1933)