Abu Dhabi’s economy is projected to grow by nearly 3.8 per cent in 2011 and the non-hydrocarbon sector will likely drive that growth, a local report has shown
As the emirate is pushing ahead with expansion projects in its hydrocarbon sector, oil investments are forecast to climb to a record high of around Dh33.7 billion in 2011, nearly Dhfour billion above 2010, said the report by the Abu Dhabi Chamber of Commerce and Industry (ADCCI).
From around Dh546.7 billion in 2010, Abu Dhabi’s real GDP is forecast to expand to about Dh567.3 billion, an increase of 3.8 per cent, it said.
The bulk of the growth is projected in the non-oil sector, which will swell by nearly 5.1 per cent to Dh258.5 billion this year from Dh246 billion in 2010.
The report expected the hydrocarbon sector to grow by about 2.69 per cent to Dh308.8 billion from Dh300.7 billion in the same period.
It gave no reason for the slower oil growth but it is apparently expecting a small increase in the emirate’s crude production in 2011.
Projections by the Washington-based Institute for International Finance (IIF) showed the UAE’s total oil output could rise by around 100,000 bpd through 2011.
In current prices, however, the oil sector is expected to soar by nearly 7.6 per cent in 2011 because of a projected rise in crude prices.
The report showed total investments in the UAE could expand to around Dh112.7 billion this year from Dh98 billion in 2010.
Investment in the hydrocarbon sector could grow to Dh33.7 billion from Dh29.4 billion while government investments are projected to rise to nearly Dh25.1 billion from Dh21.2 billion. Private sector investments are expected to swell to nearly Dh53.9 billion in 2011 from around Dh47.4 billion in 2010, the report said.
In current prices, Abu Dhabi’s economy, the largest in the UAE, is forecast to grow by around eight per cent from an estimated Dh546.7 billion in 2010 to nearly Dh590 billion in 2011, the report said.
Growth in the nominal economy will lift the emirate’s GDP per capita income to nearly Dh201,000 from Dh198,000 in current prices while real GDP per capita is expected to slip to Dh193,600 from Dh198,200.
The report expected inflation in the emirate at around 3.2 per cent in 2011.