Abu Dhabi economy will grow by at least 8.2% this year - top officials

Abu Dhabi: The gross domestic product (GDP) of Abu Dhabi will grow by at least 8.2 per cent in 2008 and an average of 13 per cent in the years to follow, top officials announced at the Abu Dhabi Economic Forum which opened on Sunday.

The emirate has allocated more than $10 billion to develop its infrastructure in the coming few years, including Khalifa port, industrial cities, airport expansion and the Emirates University expansion," said Nasser Bin Ahmad Al Suwaidi, chairman of the Abu Dhabi Department of Planning and Economy.

The forum's main theme this year is the emirate's policy agenda up to 2030.

Top officials and businessmen participating in the discussion panels include Hussain Al Nowais, chairman of the Khalifa Fund to Support SMEs, and Salah Al Shamsi, chairman of the Abu Dhabi Chamber of Commerce and Industry.

"The core target of the plan is to achieve a sustainable development pattern, with the partnership between the public and private sectors as an essential pillar," Al Shamsi said.

"The restructuring of the government sector and the increasing support to the private sector as well as the drive towards privatisation and increasing investments in the infrastructure, tourism, industry, education and health will all contribute to convert Abu Dhabi into one of the most attractive investment locations worldwide," he added.

One of the most serious challenges facing the development of the industrial sector in Abu Dhabi are the different forms of subsidies provided for the similar industries in other GCC countries.

"We do not seek to subsidise our industries, as the market mechanisms provide the best circumstances to yield healthy competition and better products," said Mohammad Omar Abdullah, undersecretary in the Department of Planning and Economy said.

"To face this challenge, the emirate's strategy is based on establishing industrial clusters mainly for the steel industry, aluminium, and plastics, where we will have huge production facilities surrounded by related industries, and this will provide competitive advantages," he explained.

The importance of the human resources was also highlighted, including several initiatives announced by the Department of Planning such as the establishment of an institution to develop the youth's skills, leadership development institutions, and programs for developing executive leadership with the government.