Abu Dhabi’s massive injection will boost private initiatives, analysts say

Abu Dhabi: The plans and development projects announced on Sunday by the Abu Dhabi Executive Council, which will see Dh330 billion invested in capital projects within the next five years, is expected to provide 5,000 Emiratis with new job opportunities. It would also grant housing loans for 1,500 UAE nationals. This says the emirate of Abu Dhabi is preparing another aggressive developmental phase, some experts have noted.

Commenting on the plan, announced by the Abu Dhabi Executive Council and led by Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, Mohammad Omar Abdullah, Undersecretary of the Department of Economic Development, said the initiative would be shaping development for the period between 2013 and 2017; ultimately achieving the strategies and objectives set for Abu Dhabi Vision of 2030.

“The timing of the unprecedented swath of new projects and plans is very suitable to empower the local economy by diversifying the Abu Dhabi economy through non-oil sectors. In other words, it okayed the role of the private sector to give a hand to the government to be a real strategic partner effectively to achieve such goals,” Abdullah said.

Waddah Taha, chief analyst and economist at Zarooni Group, said the announcement is a strong message to the world that “we are here”.

“Abu Dhabi set a very good example of a speedy recovery from the setback resulting from the financial crisis of 2008. The plan is an execution of Abu Dhabi Vision to create long-term welfare programmes for the citizens and to create a better investment climate,” said Taha. He added that the plan reflected the balanced and stable economy of Abu Dhabi; unlike other economies in the world which are still fighting to remove the repercussions of the financial crisis.

The timing at the start of 2013 is also significant. “It tells investors and others that Abu Dhabi, in particularly and the UAE in general, are moving towards a bright future, not relying mainly on profit making projects, but rather on long term investment projects in various fields such as housing, education, health, infrastructure amongst others,” clarified Taha.

Salem Al Ameri, Federal National Council member, agrees, saying the Council’s decision on allocating the fresh round of funding projects would without doubt contribute to a quantum leap in the emirate’s economy. “It is a leap towards upgrading and improving the economy of the Emirate of Abu Dhabi via some projects and initiatives which would create new jobs and businesses,” remarked Al Ameri.

Khalfan Al Kaabi, First Vice-Chairman of the Abu Dhabi Chamber of Commerce and Industry, also said that the plans aim to develop the national economy and better its performance more to be amongst the top 5 countries in the world. “The decisions of the Executive Council will positively affect the financially and economically and will help achieve the best economic and financial results through pumping this huge amount of money for sustainable development towards Abu Dhabi Vision 2030,” said Al Kaabi.

Amer Al Mansouri, Chairman of 3-B Group, said this will motivate and incentivise the market and will help achieve a real economic recovery through such various economic projects. Al Mansouri: “We will be witnessing a real growth in the Abu Dhabi economy throughout these years as many projects will be executed, particularly in construction and housing.”

Craig Plumb, Director of Research for Jones Lang LaSalle, said such projects will bring confidence to the market and will give impetus to the market, particularly real estate and construction industries. “Such projects will give confidence to the people and to investors and will also bring significant shift for the emirates’ economy during the next five years by providing more jobs, services and infrastructure,” said Plumb.

Last month, the Abu Dhabi Executive Council approved a plethora of new development projects in the emirate, especially in the areas of social services, housing, health and education.