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The region’s GDP is set to double by 2030 with various sectors, including oil and gas, power generation, infrastructure and transport, and tourism, expected to drive this growth. The government has identified these sectors as having particular potential for investment and can offer competitive advantages in terms of resources, geography and development needs. The region is home to both the world’s largest sour gas project and the biggest concentrated solar power project. In addition, a rising population is expected to drive real estate demand in coming years, while the region is increasingly looking to boost visitor numbers by promoting its natural beauty in an effort to attract tourists. This chapter contains an interview with Sheikh Hamdan bin Zayed Al Nahyan, Ruler’s Representative in the Western Region.

Manufacturing is playing an increasingly important role in the emirate as it pushes ahead with efforts to build a long-term growth path that is less dependent on hydrocarbons. In 2013 manufacturing contributed 5.7% to the emirate’s GDP, up from 5.3% in 2012 with the sector accounting for 12.6% of the country’s non-oil GDP in 2013. Meanwhile Abu Dhabi’s petrochemicals industry has a number of competitive advantages, such as the emirate’s vast crude oil reserves and gas resources, the UAE’s location and significant local demand. Local producers of construction materials are set to benefit from the upcoming construction projects in the emirate, which include projects in the oil and gas, infrastructure, transport and chemical sectors. Retail construction is also on the rise with Abu Dhabi’s retail stock growing strongly in recent years, from 1.7m sq metres of gross leasable area in 2011 to 1.8m in 2012 and 2.2m in 2013. Growing competition in the sector is expected to see players start to diversify their retail mix as more malls open in the coming three to four years. This chapter contains an interview with Suhail Mubarak bin Athaeeth Al Ameri, CEO, Senaat.

The transport and storage sector contributed some Dh35bn ($9.5bn) to the emirate’s economy in 2013, equivalent to 3.67% of overall GDP. Sector GDP for the year was up 7.1% on 2012 figures in real terms, with its real compound annual growth rate for the period between 2009 and 2013 standing at over 12%. Several major new infrastructure projects indicate that the rapid development and growth of the transport sector is set to continue. The current expansion of the emirate’s rail capacity is seeing the construction of 1200-km network that will connect industrial centres with sea- and airports, while the emirate’s ports, which are primarily used for cargo transport and reshipping, are now being paired with industrial zones and manufacturing centres to integrate with the logistics offering. In the aviation sector, a new terminal at Abu Dhabi International Airport will occupy a 700,000-sq-metre footprint on completion in 2017, making it the largest building in all of Abu Dhabi. This chapter contains an interview with Faris Al Mazrouei, CEO, Etihad Rail.

The real estate sector in Abu Dhabi is currently in a period of growth and rising prices, following the global financial crisis that began in 2008. As of the third quarter of 2014, all segments of the market were in simultaneous recovery for the first time since the downturn. The government is set to continue promoting market stability, maintaining its high level of involvement in real estate investment development while growing demand, coupled with tight supply in some areas, suggests that overall prices will continue to rise across most market segments in 2015. Meanwhile the emirate’s construction industry appears to be entering a period of renewed growth, with the total value of construction projects under way or in the pipeline standing at $727bn as of April 2014, making the UAE the second-largest construction market in the GCC. This chapter contains interviews with Saeed Al Ghafli, Chairman, Department of Municipal Affairs; and Mohammed Al Mubarak, CEO, Aldar.

Driven in large part by targeted government investment and an offset programme aimed at bolstering domestic capacity, Abu Dhabi has witnessed tremendous growth in its aerospace and defence industry in recent times. National Service was introduced in the UAE in 2014 and is mandatory for Emiratis aged 18 to 30. The government has also launched a range of training programmes aimed at bolstering its national security initiatives and applying international best practices to the domestic security sector. Moving forward the UAE is expected to double homeland security spending over the next 10 years, from $5.5bn to more than $10bn, while the emirate’s growing aerospace sector is having positive knock-on effects for domestic industry, with additional training set to boost employees’ qualifications in other key areas, such as foundries and shipbuilding. This chapter contains a viewpoint from Homaid Al Shemmari, CEO of Aerospace and Engineering Services, Mubadala.

Abu Dhabi’s economic growth, rising population and expanding industrial sector have contributed to increasing power demand in the emirate. Demand is growing at a rate of 7.5% a year with authorities expecting this trajectory to continue over the next decade. The sector is run on an independent water and power producer model, which sees the government investing in an increasingly diversified range of facilities to meet demand for power and water generation. Most of Abu Dhabi’s power generation comes from combined-cycle gas turbine power stations, though both nuclear and renewable energy are developing in the emirate. The Gulf’s first nuclear power plant is due to come on-line in 2017, when the first of four reactors at the Barakah plant in Al Gharbia starts generation. Developments in wastewater management are improving the sewerage system, which will see it become one of the world’s largest gravity-driven networks when completed, with a 42-km main tunnel. This chapter contains an interview with Saif Al Qubaisi, Acting Director-General, Regulation and Supervision Bureau.