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The government has played a key role in the expansion of the security, aerospace and defence industry over the past decade in an effort to strengthen the UAE’s defence capabilities and as a means of boosting economic diversification. The UAE has traditionally purchased the majority of its military hardware and equipment from the world’s largest suppliers; however, this is changing as more local companies enter the industry. By most counts demand for defence-related equipment and services is on the rise, both within the UAE and throughout the broader region, meaning that there is potential for continued growth in the sector in Abu Dhabi. Despite challenges such as high level of regional competition, most local defence and aviation firms expect to see continued expansion going forward. This chapter contains an interview with Staff Major General Obaid Al Ketbi, Member, Executive Council and Deputy Commander General, Abu Dhabi Police (ADP).

As a close-out agreement was signed for long-held concessions in early 2014 and the government is looking for potential new partners for the development of its oil and gas fields, 2014 is expected to see a shake-up of Abu Dhabi’s hydrocarbons industry. The government is keen to boost gas production, requiring investment in the emirate’s challenging sour gas reservoirs. This means opportunities in the upstream sector for everyone from oil majors to engineering, procurement and construction (EPC) contractors. There are also likely to be opportunities for independents and smaller players as Abu Dhabi National Oil Company (ADNOC) looks to diversify and broaden the potential of the sector to maximise the emirate’s vast hydrocarbons wealth. This chapter contains interviews with Abdulla Nasser Al Suwaidi, Director-General, ADNOC; and Khadem Al Qubaisi, Managing Director, International Petroleum Investment Company; as well as a viewpoint from Sultan Ahmed Al Jaber, UAE Minister of State, and CEO, Masdar.

In 2012 Abu Dhabi’s insurance sector posted continued growth on the back of increased spending from consumers, corporations and the government. The UAE market overall remains underpenetrated, though total premiums as a percentage of GDP did see a slight increase from 1.9% in 2011 to 2% in 2012. GDP growth and planned government spending on large-scale infrastructure projects will increase the emirate’s stock of insurable assets in the coming year and provide investment opportunities for national and foreign insurers, while improved technical underwriting, increasingly diverse assets and new regulations also signal maturation in the sector.

Home to some of the UAE’s most prominent Islamic banks and takaful operators, Abu Dhabi has long been a regional centre for Islamic financial services. Global Islamic banking assets are forecast to surpass the $2trn mark by the end of 2014, and Abu Dhabi’s sharia-compliant financers are well positioned to capitalise on this expansion, although a competitive market and the lingering effects of the 2008-09 global economic crisis remain challenges. Potential for takaful growth in Abu Dhabi and the wider UAE is strong, underwritten by high levels of disposable income and the low insurance penetration. This chapter contains an interview with Tirad M Mahmoud, CEO, Abu Dhabi Islamic Bank.

In 2012 the GDP of Abu Dhabi expanded by 5.6% y-o-y, and the government has forecast annual expansion of 5.7% in the 2013-16 period. With a sustained return to positive territory for its main index and a crucial upgrade to “emerging market” status by Morgan Stanley Capital International (MSCI), Abu Dhabi’s exchange has had a good year. Both developments have generated new optimism regarding the exchange’s ability to attract liquidity, a goal which local and federal authorities have made a strategic priority. Efforts are under way to improve investor relations, with the Securities and Commodities Authority teaming up with both of the UAE’s exchanges, HSBC and the Middle East Investor Relations Society to introduce systemic improvements. This chapter contains an interview with Rashed Al Baloushi, CEO, Abu Dhabi Securities Exchange.

The UAE’s banking sector has continued to grow in both depth and complexity to become the largest in the region, accounting for 31% of the total volume of the GCC banking sector and about 20% of the gross volume of the Arab banking sector at the close of 2012. The sector’s profitable trend continued into the first half of 2013: aggregate net profit for the period ending June 30, 2013 reached $2.3bn, a 13.4% rise on $2bn in the first half of 2012. Regulatory reform continues to pose a challenge moving into 2014, but the opportunities that are arising from the emirate’s economic expansion are expected to underwrite the ongoing growth of Abu Dhabi’s lenders. This chapter contains interviews with Sultan bin Nasser Al Suwaidi, Governor, Central Bank of the UAE; and Younis Al Khoori, Vice-Chairman, Al Etihad Credit Bureau (AECB), and Undersecretary, Ministry of Finance.