Business | Oil & Gas

Abu Dhabi’s extractive industries contribute 5% to GDP

Electricity generation grew 10.4 per cent over three years

  • WAM
  • Published: 18:00 January 1, 2013
  • Gulf News

  • Image Credit: Abdul Rahman/Gulf News
  • The employees of MBM Dallah, cleaning contractor of Centre of Waste Management, (CWM), cleaning after disposing litter in pressurized bin in Abu Dhabi's Khalidia area at night.

Abu Dhabi: The UAE Government attaches special attention to the activity of electricity, water, gas and waste management, as a supporting activity for all other economic activities. 
This activity witnessed remarkable development following the issuance of the law No. 2 in March 1998, by which Abu Dhabi Water & Electricity Authority was founded to replace the former Abu Dhabi Water & Electricity Department.
This was accompanied by the opening of free investment for the national private sector and foreign investors alike, which contributed to raising the level of competitiveness among companies to provide the best offers and services in the field of electricity and water.

The government established the “Centre of Waste Management-Abu Dhabi”, in December 2008 under the umbrella of the “Environment Agency — Abu Dhabi (EAD)”, to act as the competent authority for monitoring and coordinating the activities of waste management across the emirate, and overseeing the implementation of the government’s ambitious strategy in this regard.

The generation of electricity in the Emirate of Abu Dhabi grew at an annual rate of 10.4 per cent on average over the last three years, reaching 46.4 thousand (GW/h) in 2011.The rate of production of desalinated water increased to 219.8 billion gallons in 2011, rising at an average annual rate of 17.3 per cent during the period (2008 2011).

The continuing rise in the rates of generation and production of electricity and water is compatible with the need to meet the increasing consumption, due to urbanisation and industrial expansion, where electricity consumption rose to 43.3 thousand (GW/h) in 2011, and the consumption of desalinated water was 211.5 billion gallons in 2011. The contribution of the electricity, gas, water and waste management activity to the total GDP of the Emirate of Abu Dhabi, amounted to about 2 per cent in 2011.

 

Value added

 

The value added to the activity of electricity, gas, water and waste management activities, recorded a remarkable increase during the period (2006 - 2011), from Dh10.42 billion in 2006 to Dh16.13 billion in 2011, at an annual rate of 9.14 per cent on average during the period, while the growth rate of the value added to the activity stood at 10.5 per cent in 2011, compared to 2010.


Total fixed capital formation


The total fixed capital formation in electricity, gas, water and waste management activity increased from Dh6.6 billion in 2006 to Dh20.9 billion in 2011, at an annual rate of 25.6 per cent on average during the period (2006-2011), while the growth rate of capital formation in the activity reached 14.5 per cent in 2011, compared to 2010.

No doubt that the steady growth demonstrates and justifies the interest paid to the activity of electricity, gas and water, and waste management activities on the part of investors in various government, public and private sectors; taking into consideration the feasibility of investing in this activity, which witnesses rapid development over time.

 

Construction and building

 

The construction and building activity is of particular importance, as one of the activities most linked to the national economy, as it implements projects required by other activities, in addition to carrying out the maintenance work for these projects. The activity includes a number of sub-activities, according to the International Standard Industrial Classification of economic activities, such as site preparation, construction of complete facilities or parts thereof; and installation and finishing of buildings.

The construction and building activity is mainly influenced by the demand resulting from population growth and direct investment. The activity contribution to GDP rose from 6.8 per cent in 2006 to more than 10 per cent in 2011, as a result of the construction boom witnessed by the emirate during the last five years, as several construction projects were completed, to meet the needs of population increase, and the growth of various economic activities. In 2011, the number of building permits for all purposes rose to 13559 licenses, increasing by 17.5 per cent compared to 2010.

 

Value added

 

The value added to the construction and building activity witnessed remarkable development during the last five years, as a result of the economic development and prosperity experienced by the Emirate of Abu Dhabi during that period, as the value added to the activity increased significantly from Dh36.9 billion in 2006 to Dh81 billion in 2011, at a rate annual growth rate of 17 per cent on average during the period (2006-2011).

Total fixed capital formation

 

Many investment projects were carried out during the past five years, resulting in the increase of the total fixed capital formation in the activity of the construction of Dh2,805 million in 2006 to Dh4,862 million years 2011, recording an increase of Dh2,057 million, and a growth rate of 11.6 per cent on average during that period.

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