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Abu Dhabi’s security, aerospace and defence industries have become a critical component of the emirate’s ongoing push to both protect critical national infrastructure and its interests abroad, as well as transform itself into a knowledge-based, diversified economy. Total military spending in the UAE stood at 5.1% of GDP in 2012 before rising to 6.1% in 2013 and then moderating to 5.7% in 2014. The UAE is the regional leader in defence manufacturing companies, with more than 80 firms focusing on shipbuilding, unmanned systems, and aviation and land systems. Meanwhile, the UAE’s space plans formally began in July 2014 with the announcement that the country would launch a scientific mission to Mars in 2021. This chapter contains an interview with Major General Mohammed Khalfan Matar Al Rumaithi, Commander-in-Chief, Abu Dhabi Police.

With the decline in oil prices placing the federal budget under pressure, and demand for power and water increasing at a rapid rate, the authorities have turned their attention toward more effective consumer pricing and demand management. Diversification away from reliance on combined-cycle gas independent water and power producers will have a transformative effect on the supply side of the sector in the coming years. Renewable energy is expected to play an increasingly important role in Abu Dhabi’s power generation in the near future, with the emirate working towards a 7% renewable target by 2020. The biggest shake-up to Abu Dhabi’s power sector, however, will arrive with the launch of the Barakah Nuclear Power Plant, which is due to begin producing power in 2017 and will eventually have an output of 5600 MW – representing more than a third of current generation capacity.

According to figures from the Statistics Centre – Abu Dhabi, in 2014 the mining and quarrying sector, including oil and gas, contributed Dh485.7bn ($132.2m) to Abu Dhabi’s GDP when measured at current prices. The emirate holds 94% of the UAE’s oil reserves and as of the end of 2014 the UAE had proven oil reserves of 97.8bn barrels, equivalent to 5.8% of the world total, placing the UAE eighth globally in terms of oil wealth. Alongside these reserves, the UAE is also home to the world’s seventh-largest reserves of natural gas, estimated at 215trn standard cu feet, with Abu Dhabi again holding the majority of resources. Although the delivery horizon for some new projects has been extended in light of the falling oil price, Abu Dhabi authorities remain committed to a long-term investment strategy that will see production reach a plateau of 3.5m bpd within the next two years. This chapter contains interviews with Sultan Al Jaber, CEO, Abu Dhabi National Oil Company (ADNOC); and Mohamed Jameel Al Ramahi, CEO, Masdar.

With a total of 60 insurers in the UAE, including 34 locally incorporated companies and 26 foreign branches, federal authorities have increasingly sought to promote consolidation in the nation’s growing insurance market. According to the Statistics Centre – Abu Dhabi, financial and insurance activities were a significant contributor to the emirate’s economic growth in 2014, expanding by 27.1%. Takaful represented a particular growth driver not just in the UAE but across the region, with gross written premiums in the GCC’s takaful market growing at an 11.8% compound annual growth rate between 2010 and 2014 to reach $8.9bn. Meanwhile, there were 3.3m active health insurance members in Abu Dhabi in 2013 according to Health Authority - Abu Dhabi, more than the entire population, meaning that the emirate has achieved its goal of universal coverage.

After a robust performance in 2015, the sector has entered 2016 ready to weather the economic challenges presented by a subdued oil price and is well positioned to pursue growth where opportunities arise in the coming years. With total assets estimated at $127bn in 2014, the UAE has one of the largest sharia-compliant banking sectors in the world – the third largest after Saudi Arabia and Malaysia. Beyond the dedicated Islamic banks, the majority of the UAE’s 23 licensed lenders and many of the 26 foreign banks in the country operate sharia windows. Moving forward, Islamic lenders can expect to benefit from domestic economic activity, including the projects attached to Dubai Expo 2020 and the opening up of Iran to increased trade and investment activity. This chapter contains an interview with Tirad Al Mahmoud, CEO, Abu Dhabi Islamic Bank.

The Abu Dhabi Securities Exchange (ADX) has quickly developed from a fledging investment platform to an institution of global significance. At the end of 2015 a total of 66 public companies were listed on the exchange, with insurance, banking and industry making up the largest subsectors in terms of listings. The government has made moves to expand its debt and bond offerings in recent times, with the emirate’s most recent sovereign issuance, consisting of a five-year $3bn bond in 2009, following on from two similar five-year offerings, which together formed the beginnings of a yield curve by which subsequent corporate offerings might be made. Meanwhile, the development of a new financial centre promises to significantly add to Abu Dhabi’s inward and outward investment activity. Al Maryah Island has been chosen as the location for a new financial free zone in the emirate. This chapter contains an interview with Rashed Al Balooshi, CEO, Abu Dhabi Securities Exchange (ADX).