Economic Plans In UAE

The backbone of UAE’s economy is its large hydrocarbon wealth which gives it one of the highest GDP per capita in the world. Majority of these resources is owned by Abu Dhabi– 95% of the oil and 6% of gas. In the year 2010 oil production in UAE was in the range of 2.3m barrels per day. Number of projects have been started to increase the production to 3m bpd. In recent years domestic consumption for power, desalination and re-injection of gas into oil fields have increased considerably which has turned the focus to production of gas.

Present Economic Structure

The economy of United Arab Emirates is a growing rapidly. In 2006 there was growth of 9% in per capita income, which in turn provided a GDP per capita of $49,700. Recently the government has been diversifying their economic plans. A huge increase can be noticed in the contribution of non oil and gas sectors in the country’s GDP due to the high prices of oil. In UAE’s total GDP the contribution of Non oil and gas GDP is 64%. Abu Dhabi which is the largest oil producer of the UAE has also adopted an active diversification and liberalisation programme to reduce the UAE’s reliance on the hydrocarbon sector by making substantial new investment in industry, real estate, tourism and retail. Completion of an industrial free zone, Industrial City of Abu Dhabi, and the construction of another, ICAD II, in the pipeline are some of the results of such industrial diversification. Several large-scale development projects have been undertaken to promote the tourism and real estate sectors. A new port, an expanded airport and a proposed rail link between Abu Dhabi and Dubai are all in the development stages.

Objectives of Dubai Strategic Plan 2015

Being one of the most globalized economies, Dubai is being challenged on sectors like tourism, exports, construction and real estate. All these sectors in combination have produced a real GDP growth of about 8%  in 2008. Along with others  these sectors are also witnessing noticeable slowdowns. The contributions of these sectors in Dubai’s present and future economic growth cannot be any more taken for granted. Thus, giving rise to the situation where the economic pillar of Dubai Strategic Plan-2015 should be re-considered immediately(ttp://www.dubai.ae/opt/CMSContent/Active/Shared/Files/DEG_docs/Dubai_Strategic_Plan_2015.pdf) with the following two objectives of:

(1) Adaptation of a Shield to protect Dubai from the prevailing economic storm so that its past achievements can be safeguarded. (2) Providing a definition to a new, non-inflationary and sustainable growth path keeping in mind the imperatives of Dubai’s socio-economic structure.

Efforts of Dubai Economic Department

Dubai Economic Department (DED) (http://www.dubaided.gov.ae/english/Pages/default.aspx) has combined with various stakeholders their effort to achieve the diversification of economy. DED is the authority which makes economic policies in the Emirates of Dubai. It is in charge of revision of the 2020 Economic Strategy Plan of Dubai or ESP. Dubai Economic Department (DED) is currently developing a comprehensive program to recommend policies and take initiatives for development of SMEs (Small and medium enterprises) in UAE . SMEs have become the backbone of Dubai economy and are playing an important role in all aspects.  SMEs represent 95% of all firms registered in UAE.

Small and Medium Enterprises (SMEs) Strategy

Global competitiveness of Dubai based SMEs is ensured by focusing on establishment of a suitable business environment, which shall include better access to capital as well as more participation of public and private stakeholders. Proposed strategy will  allow Dubai to harness the opportunities available due to slowing down of global economy. It will also provide much required stability and sustainability to the economy of UAE.

Economy to be based more on innovative and technology

The focus on SME will enable to move economy of UAE to a new dimension of innovative and technology driven economy. The base of which will be formed by high degree of efficiencies and levels of productivity. Immediate measures have been undertaken to address the issues of access to and cost of funds. Simultaneously, achieving the development of institutional set up like SME Development Agency, specialized SME financing vehicles, rating and reporting infrastructure etc.

The Abu Dhabi Economic Vision 2030

Economic Vision 2030 is planned by the Abu Dhabi Urban Planning Council. In this plan Abu Dhabi's economy will be sustainable and not be dependent on any one facet or source of revenue. More specifically the non-oil portion of income is planned to be increased from about 40% to about 60%.

The Abu Dhabi Economic Vision 2030 identifies the following as the Government’s immediate economic priorities:

1. Building an open, efficient, effective and globally integrated business environment
2. Adopting a disciplined fiscal policy that is responsive to economic cycles
3. Establishing a resilient monetary and financial market environment with manageable levels of inflation
4. Driving significant improvement in the efficiency of the labour market
5. Developing a sufficient and resilient infrastructure capable of supporting anticipated economic growth
6. Developing a highly skilled, highly productive work force
7. Enabling financial markets to become the key financiers of economic sectors and projects.

The Abu Dhabi Economic Vision 2030 (http://www.adced.ae/en/EconomicVision/index.aspx??VisionID=1&mnu=P&MenuID=9) has established a common framework to align all policies and plans that contribute to the  development of the economy of UAE. It intends to provide increased opportunities to the local and international private sectors in UAE and also new employment opportunities for UAE Nationals in highly-skilled, knowledge-based, export-oriented sectors.