Strong oil prices will boost Abu Dhabi’s economy by nearly eight per cent in current prices next year while investments will surge by 15 per cent, nearly half of which will come from the private sector, according to a local study.
Exports are also projected to swell by nearly 9.5 per cent in 2011 and imports by around eight per cent, indicating a continued recovery in domestic business, said the study by the Abu Dhabi Chamber of Commerce and Industry.
From an estimated Dh546.7 billion in 2010, the emirate’s nominal gross domestic product is forecast to rise to nearly Dh590 billion in 2011, the report said.
Gross fixed capital formation (public and private investments) will swell by nearly 15 per cent to a record Dh112.7 billion and around 48 per cent will be pumped by the private sector, the report showed.
The government will account for nearly 22 per cent of the investments while the hydrocarbon sector will attract nearly 30 per cent, including 19 per cent for crude oil and 11 per cent for refining, gas and related sectors.
The report put hydrocarbon investments at around Dh33.7 billion in 2011 compared with Dh29.4 billion in 2010, an increase of about 15 per cent.
Government investments will rise by 18 per cent to Dh25.1 billion from Dh21.2 billion while those by the private sector will grow by nearly 14 per cent to Dh53.9 billion from around Dh47.7 billion in the same period.
The report expected Abu Dhabi’s exports to increase by around 9.5 per cent to Dh346.1 billion in 2011 from Dh316.1 billion in 2010. Imports are projected to swell by about eight per cent to Dh108.6 billion from Dh100.5 billion.
Growth in the nominal economy will lift the emirate’s GDP per capita income to nearly Dh201,000 from Dh198,000 despite a steady rise in the population.
“Abu Dhabi is witnessing massive economic and social developments thanks to the balanced development policy adopted by the government,” the report said.
It showed the oil sector’s contribution to nominal GDP stood at around Dh300.7 billion in 2010, or 55 per cent, and forecast it to rise to Dh308.8 billion in 2011, nearly 52.3 per cent. The non-oil will rise to Dh258.5 billion from Dh246 billion.
A breakdown showed the manufacturing sector will likely remain the second largest component to GDP after oil, with a share of 12 per cent in 2011. It will be followed by construction, with 10 per cent, government services with around eight per cent and trade with nearly six per cent.
According to the report, the government sector could grow by 5.8 per cent in 2011 and the private sector by nearly 10 per cent.