UAE: Abu Dhabi

In 2011 Abu Dhabi made significant progress towards its long-term goal of economic diversification, with major developments in the fields of industry, transport and tourism. While these are significant accomplishments, the government announced in late 2011 that it was reprioritising certain projects.

Key elements of Abu Dhabi’s economic diversification programme, including the development of the emirate’s manufacturing base, are moving ahead as planned, with the government reiterating its commitment to encourage investment and diversification.

Abu Dhabi will soon be connected to the other emirates of the UAE and to the wider region by a broad-gauge rail network that will streamline logistics, boost exports and increase industrial development.

The face of Abu Dhabi’s oil industry could be set for a major makeover, with long established international operators facing increased competition for existing concessions and new contracts due to be agreed in coming years. In particular, energy-hungry Asian states are queuing up to gain access to the emirate’s oil fields.

Abu Dhabi’s construction industry is shifting its focus from residential and commercial development, which has long dominated the trade, to a rising number of infrastructure projects. However, supply pipeline bottlenecks could cause costs to rise and delay the rollout of some plans.

Abu Dhabi has surpassed 1m hotel guests for the first half of the year and seems likely to achieve its tourism aims for 2011, although increased competition could eat into margins in the longer term.