UAE: Abu Dhabi

With a rule requiring Abu Dhabi government employees to live within the emirate set to come into effect in September, demand for residential real estate is expected to climb. However, certain segments of the market – particularly at the low end – remain soft.

A multi-billion-dollar redevelopment plan for Abu Dhabi International Airport (ADIA) is expected to help the facility handle a rising number of passengers as well as assist the emirate in establishing a position as a regional aviation hub.

As Abu Dhabi looks to develop its capital markets, it has again raised discussions of establishing a Gulf Derivatives Exchange, while an upgrade for the UAE to emerging market status is likely to boost the bourse’s international profile and attract more institutional investors.

Industrial activity is on the rise in Abu Dhabi as the emirate’s drive towards sustainable economic diversification under Abu Dhabi Economic Vision 2030 gathers pace. The recently opened Khalifa Industrial Zone Abu Dhabi is likely to be a key engine of growth for the emirate, while a recent multi-billion dollar merger between the UAE’s two aluminium manufacturers is also set to bolster plans for industrial expansion.

A new free zone planned in Abu Dhabi could spur on further investment in the local economy.

The spate of large defence contracts recently awarded to Abu Dhabi-based firms, together with the emirate’s growing success in attracting investment for technology, has highlighted the key role earmarked for the industry in the emirate’s long-term plans to diversify its economy.