Abu Dhabi economy to grow 3.9pc

ABU DHABI: Abu Dhabi’s economy is likely to grow 3.9 per cent this year, lagging previous forecasts, but should pick up in the next few years helped by further diversification away from oil, the Department of Economic Development said yesterday.

A drop in oil production this year is expected to curb economic growth in Abu Dhabi. The department, in an inaugural report on Abu Dhabi’s development outlook, said the government should keep spending to support growth although it said the focus of spending was shifting to social projects.

Abu Dhabi accounts for 65pc of UAE economic output and almost all of its oil production.

The department forecast economic growth would accelerate to average 5.7pc annually in 2013-2016. Non-oil gross domestic product would rise 5.5pc this year, accelerating to an average of 6.5pc in the 2013-2016 period on a projected increase in private sector investment.

“The non-oil sector will be the prime driver (of growth from 2012 onwards) with investments in industry, tourism, infrastructure and others. The oil sector will also contribute to the GDP,” department undersecretary Mohamed Omar Abdulla said.

gulf-daily-news, September 25, 2012