Energy 'still Abu Dhabi's backbone'

Abu Dhabi: Despite the extensive efforts to diversify the economy of Abu Dhabi away from hydrocarbon production, the energy sector will remain the backbone of the emirate's economy according to a top executive.

Abu Dhabi, which has set a target to increase its oil production to four million barrels per day, is also seeking to establish a strong petrochemical industries cluster in Ruwais.

"Energy will remain the backbone of our economy, and that does not only include oil, as we are seeking a major development programme for our sour gas production, as well as the petrochemical sector, in which we lagged behind compared to our neighbours," Khaldoun Al Mubarak, chairman of Abu Dhabi's Executive Affairs Authority said at the Middle East Economic Digest's (MEED) conference on Abu Dhabi's development in the capital on Sunday.

Nevertheless, the emirate has planned ambitious development schemes in other economic sectors to be implemented over the next 25 years. "Looking forward, we seek to further diversify our economy through developing other sectors such as heavy industries, tourism and real estate, as well as education and healthcare," he added.

Commenting on the emirate's policy agenda up to the year 2030, Al Mubarak outlined the core issues and objectives set by the government to meet the fast paced economic growth.

"The partnership with the private sector has proved to be most efficient in sectors such as education or healthcare, as this sector is more efficient and quicker in adapting to changes," Al Mubarak said.

Abu Dhabi's model of planning has been based on demand-supply realities. In tourism, hotels in the emirate operate at more than 95 per cent of full capacity. In real estate, some studies outlined that demand surpasses supply by more than 800 per cent.

"We seek to increase the number of hotel rooms to about 25,000 rooms in the year 2015, which is a very realistic plan given the huge demand," Al Mubarak said.