Cover of The Report: Abu Dhabi 2017

The Report: Abu Dhabi 2017

While reduced oil prices are undoubtedly a concern for the emirate’s authorities, economic diversification efforts of recent years mean Abu Dhabi is well placed to weather a prolonged period of subdued prices. Vision 2030 meanwhile contains a raft of goals that will further reduce the emirate’s reliance on hydrocarbons, and continue to foster the emergence of a more sustainable and knowledge-based economy in the years ahead.

The wealth generated by Abu Dhabi’s significant hydrocarbons reserves has allowed the emirate to substantially increase its economic and political clout, both on a regional and a global level, over the past couple of decades, and although the Gulf region has faced a challenging economic environment since the second half of 2014 when oil prices began to slide, a more optimistic outlook for international oil prices in 2017 has offered some welcome relief. The authorities are, however, continuing to push ahead with the process of fiscal reform precipitated by the price drop, with measures long-called for by international bodies such as the World Bank including subsidies reduction and the introduction of new taxes now moving ahead as the government looks to boost revenue streams. Meanwhile, efforts towards economic diversification continue to develop apace as the emirate progresses towards the goals laid out in Abu Dhabi Economic Vision 2030, namely the realisation of a sustainable, knowledge-based economy fuelled by private sector activity and investment across a range of sectors.

 

OBG & UAE: Abu Dhabi