UAE: Abu Dhabi

As the first emirate to introduce a compulsory medical insurance scheme for expatriate workers in 2006, Abu Dhabi has long been a leader in the health care sector. Since then, the Health Authority – Abu Dhabi (HAAD) has continued to implement changes to improve the health insurance system.

Efforts to galvanise business tourism by investing in infrastructure look to be paying off for Abu Dhabi, with figures showing that the number of events taking place in the emirate is on the rise.

With demand for electricity and water rising quickly, authorities in Abu Dhabi have taken steps to reduce consumption, including the introduction of a billing system that will indicate usage more clearly to consumers. Meanwhile, a recent study by an international consultancy firm shows that the introduction of some power-saving techniques could reduce electricity demand in the UAE by up to 50%.

Abu Dhabi’s construction sector appears set to return to near-full capacity, with the government announcing it is reactivating a number of major development projects and stepping up spending on infrastructure development. In late January, the government unveiled its revised construction programme, putting a number of formerly stalled projects on the top of its investment agenda.

The four largest banks in Abu Dhabi reported an increase in annual profits for 2011 and, in two cases, have substantially exceeded analysts’ expectations. Meanwhile, lending in the UAE overall was up in 2011 and is expected to continue through 2012, with growth being driven in part by retail banking, including loans to small and medium-sized enterprises (SMEs).

The real estate market in Abu Dhabi is continuing to undergo a period of correction, with prices flat, slower demand and more supply expected to come to market in 2012. But while the market is expected to remain subdued in the near future, new real estate laws anticipated in 2012 could improve the situation in the longer term.