UAE: Abu Dhabi

Railway developments are moving forward in Abu Dhabi, with the first phase of an expansive national project expected to be completed this year. A national network will decrease the emirate’s dependence on increasingly busy highways, and could be a boon to GDP growth. However, delays in scheduled passenger services will keep commuters on the highways for the next several years.

The banking sector in Abu Dhabi showed consistent increases in liquidity and net profits throughout 2012, largely aided by net-interest earnings and bigger profits from Islamic finance. Fourth-quarter results and a strong performance by many banks’ shares – the strongest in five years – have led many analysts to conclude that the sector is firmly on the path to recovery.

Efforts to raise the profile of farmers and their produce in Abu Dhabi are gathering strength as the emirate steps up its bid to generate greater food production. Addressing the challenges stemming from the UAE’s arid climate and limited water supply forms a key component of the emirate’s agriculture drive and is expected to facilitate Abu Dhabi’s plans to to roll out extensive development projects in the coming years.

New developments in the logistics sector, alongside an increase in non-oil trade, are expected to keep Abu Dhabi’s economy on track for moderate expansion in the coming year, with plans for further diversification set to deliver increasingly balanced growth.

Rising confidence among local consumers is being matched by the steadily strengthening economy, both of which should encourage spending in Abu Dhabi’s retail sector.

The emirate’s education system is in the midst of a major overhaul, one aimed at making the school system more responsive to the needs of students in a changing community. The new system will reflect evolving social, economic and cultural trends, with English coming to share the platform with Arabic as the language of learning.