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Abu Dhabi’s office, residential and retail markets, long buoyed by undersupply, now face the opposite challenge, with a host of large-scale new completions coming on-line in recent years. This weighed heavily on sales prices and rental rates in 2016, although bright spots remain in the mid-market residential segment, as well as in prime up-and-coming neighbourhoods and commercial districts. In addition renewed demand for more affordable housing in Abu Dhabi has strained rents in the high-end residential sector with developers now shifting their strategies to include new mid-market developments. This has enabled double-digit returns on rental yields for some, making the mid-market segment a bright spot in an otherwise subdued residential market. This chapter contains an interview with Mohamed Khalifa Al Mubarak, CEO, Aldar.

The transport sector in Abu Dhabi is gearing up for further progression, with a new strategy taking the emirate towards a smarter future for its airports, highways and harbours. Developments in the region are linking the emirate ever closer to its neighbours, with transport systems transforming the Gulf into a more integrated, multi-modal corridor, and Abu Dhabi into an increasingly vital hub in the global transport, warehousing and trans-shipment web. This chapter contains interviews with Abdullah Belhaif Al Nuaimi, Minister of Infrastructure Development and Chairman, Federal Transport Authority; Awaidha Murshed Al Marar, Chairman, Department of Municipal Affairs and Transport; and Mohamed Juma Al Shamisi, CEO, Abu Dhabi Ports.

The security, aerospace and defence sectors have risen to become an important component of Abu Dhabi’s economic diversification strategy, with activities gaining momentum in recent years. In the aerospace segment, 2016 saw major contracts for new original equipment manufacturing (OEM) and maintenance, repair and overhaul projects signed, which should support the emirate’s ongoing transformation into a knowledge-based economy. Aerospace development dovetailed with growth in the UAE’s burgeoning space programme, which will see it launch a probe to Mars in 2020, setting the stage for commercialisation and additional private investment on the back of a newly unveiled Space Policy. Development of a robust defence manufacturing base is also progressing well, following the launch of new armoured vehicle and protective equipment ventures. This chapter contains an interview with Khalifa Al Romaithi, Chairman, UAE Space Agency.

With widespread coverage of potable water, wastewater and electricity networks, Abu Dhabi maintains utility services that are on a par, if not better than, many countries in Europe and North America. At the same time, the emirate’s government has been committed for many years to boosting power and water infrastructure further, with 2017 seeing some of the world’s most advanced projects in these spheres. At the same time, utilities development is also being carried out within the framework of the Abu Dhabi Economic Vision 2030, which includes clear environmental and sustainability goals. While many of Abu Dhabi’s power and water projects and facilities are famed for their size, future expansion is based on quality and innovation, giving the emirate a place at the forefront of technological and scientific development in the utilities field. This chapter contains interviews with Sheikh Abdulla bin Mohammed Al Hamed, Chairman, Regulation and Supervision Bureau; and Mohamed Al Hammadi, CEO, Emirates Nuclear Energy Corporation.

In common with other major energy companies, lower hydrocarbons prices have prompted authorities to carry out streamlining and efficiencies in Abu Dhabi’s energy sector. Against a backdrop of reorganisation and reform, production from the emirate’s oil and gas fields reached record levels in 2016. Currently, Abu Dhabi National Oil Company produces some 3m barrels of oil and 9.8bn standard cu feet per day of raw gas. Looking ahead, ADNOC’s strategy is to improve profitability and sustainability upstream while increasing value downstream. It also plans to triple the emirate’s output of petrochemicals by 2025. In the broader energy sphere, Abu Dhabi remains committed to making long-term investments in innovation and development of renewable energy and carbon capture technologies. This chapter contains an interview with Sultan Al Jaber, UAE Minister of State; and Group CEO, Abu Dhabi National Oil Company.

As the first emirate in the UAE to roll out mandatory health coverage, Abu Dhabi’s insurance sector has benefitted from over a decade of strong growth in both the life and general lines, with the UAE home to the region’s largest and most mature insurance market. Still, 2015 was a difficult year for the industry, as underwriters struggled with prevailing low global oil prices, increasing market competition, and sweeping regulatory reforms requiring many to realign internal process and restructure operations to meet rising national standards. Although the sector returned to profitability in 2016, strong competition continues to weigh on loss and retention ratios. Insurers are set to remain profitable in 2017, as mandatory health schemes continue to expand, while technical capacity and underwriting performance should continue to improve under the recent reforms’ rolling deadlines.