Abu Dhabi's GDP likely to touch $300b by 2025

Dubai: Abu Dhabi's gross domestic product (GDP) is projected to triple to $300 billion (Dh1 trillion) by 2025 from an estimated $105 billion this year, according to a report by the Department of Planning and Economy (DPE).

Currently, oil sector contributes about 59 per cent of the emirate's GDP, which, according to the report, will shrink to 50 per cent by 2015 and 40 per cent by 2025.

DPE estimates that a combination of factors such as giant projects, economic reform plans and government-restructuring programmes will enable the emirate to achieve its target of economic diversification.

"These [development initiatives] are supported by a strong, resourceful political leadership guided by a clear and far-sighted vision. There are strong indications for a 'brand new Abu Dhabi' and a strong, lasting and stable economy," the report said.

Currently, Abu Dhabi has an average per-capita GDP of $74,000, the second highest in the world.

The government's new economic development initiative revolves around five main pivots such as privatisation, consolidation of Abu Dhabi Stock Market, diversification of its industrial base by focusing on petrochemicals, iron and aluminum, allocation of special economic zones and development of the tourism sector.

During the past five years, Abu Dhabi's economy grew at an average rate of 18 per cent, mainly due to high oil prices.

The emirate is currently taking major steps towards a balanced diversification of its production base in order to build a self-reliant economy away from oil.

Last year oil and gas revenues represented 80 per cent of government revenues and 90 per cent of total exports.

According to the report, the structural reforms initiated three years ago are bearing fruits now.

The emirate is expected to maintain outstanding economic performance supported by factors such as comfortable financial position, a highly developed business environment and good results of macroeconomic management.