Abu Dhabi's economy improves in H1 of 2013

The UAE capital’s General Business Climate Index has gained two points in the second quarter of 2013, compared to the first quarter of the same year, about 57 and 55 points respectively, says a report of Abu Dhabi Department of Economic Development.

This clearly reflects the continued optimistic outlook of various economic establishments on the performance of Abu Dhabi’s economy during the first half of 2013, it added.

According to the results of the General Business Climate Index issued by the Studies Directorate of Abu Dhabi Department of Economic Development for the second quarter of the present year,  this continued optimism is owed to the spectacular improvement witnessed by Abu Dhabi Securities Exchange, and the improved indicators of the banks operating in the Abu Dhabi particularly and in the UAE generally, in addition to  the large-scale projects that the Emirate devotes itself  to executing,  ranging from citizen housing projects, to educational and tourism projects, including the new passenger building at Abu Dhabi International Airport.

This has positively impacted investors and their becoming aware of the improvement of the Emirate’s economic scene, the report stated.

The views of economic establishments as to the current economic conditions generally and their facilities particularly have improved during the second quarter of 2013, compared to the first quarter of the same year. The value of the current conditions index scored (52) points during the second quarter of 2013, as against 49 points approximately during the first quarter of the same year. This means that Abu Dhabi’s economy is going through a critical period of waiting, despite huge fluctuations in global economy, especially in light of the continued euro zone crisis and the ongoing drop in US economy’s performance levels.

The results showed a higher level of optimism about future conditions during the second quarter of 2013, compared to the first quarter of the same year, with an increase of roughly one point. The index value marked 58 and 57 points respectively.

This improvement is a product of strenuous efforts by the Abu Dhabi Government and the enactment of laws set up to foster an investment and business climate environment in the Emirate. The law establishing Abu Dhabi Global Marketplace as a free zone amid international expectations is one of such examples, that would upgrade the UAE's status to emerging market following enhanced level of performance of Abu Dhabi Securities Exchange.

According to economic activity, the results of the General Index indicate high level of optimism among economic establishments engaged in industrial, construction and commercial activities in general, while levels of optimism among establishments engaged in service activity remained intact.

With respect to services, levels of optimism reached their peak with the index value registering 58 points on average, while index value with respect to industrial activity  scored 57 points approximately, thereby ranking second.

This is quite normal at a time when the banking sector, financial market, and tourism sector particularly are seeing a real recovery take place since the beginning of this year. Numbers of establishments supposed to enter into operation during this year, increased by 24 hotel establishments. This will culminate in new rooms increasing by 4567 to reach up to 28,000 rooms by the end of 2013.


 

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