The non-oil sector in Abu Dhabi swelled by around six per cent in 2009 to dominate economic activity in the emirate and surpass 50 per cent of the overall GDP, a senior official said Monday.

The growth was in sharp contrast with the contraction of the oil sector, which plunged by nearly 34 per cent last year as a result of lower prices and output.

“The growth of non-oil activities by more than six per cent in 2009, in addition to the sharp drop in oil prices, raised the contribution of non-oil activities to GDP to more than 50 per cent in the Emirate of Abu Dhabi in 2009……it should be noted that ‘Economic Vision 2030’ had set to reach that figure by the year 2015,” said Nasser Ahmed Khalifa Al Suwaidi, Chairman of the Abu Dhabi Department of Economic Development (Added).

“This confirms the integrity of the balanced approach followed by the emirate, based on the expansion and diversification of domestic production and sources of income, which emphasized the soundness and strength of the economy, against the volatility of oil revenues and stock and real estate markets.”

In a foreword to ADDED’s annual economic report to be released shortly, Suwaidi said Abu Dhabi is undergoing a phase of economic expansion “firmly grounded on the determined ambitious vision” of the Emirate's leadership, which aims at promoting Abu Dhabi as a prominent business hub in the region.

He said the plan involves better utilization of capabilities of the Emirate’s economy, launching a wave of new investments across the economic sectors, and intensifying openness towards foreign investment, in order to speed up its contribution to achieving the goals of the “Economic Vision 2030."

“The strengthening elements in Abu Dhabi embody, the economic potential, opportunities, and prospect the economy, which placed the emirate in the forefront ahead of leading economies in the region, posing as one of the brightest spots in a world tangled with economic recession,” he said.

He said the prompt government intervention in the aftermath of the global fiscal distress had mitigated the repercussions of the crisis and contributed effectively to maintaining stability in the country’s banking sector.
“This has significantly helped non-oil activities to sustain the positive growth rates achieved in recent years,” he said.

Another Added official said Abu Dhabi’s economy grew by a staggering 24 per cent during 2003-2008 but nominal GDP shrank by 18 per cent last year following a steep fall in the hydrocarbon sector.

“However, it could be argued that the economy of the Emirate of Abu Dhabi achieved a satisfactory performance during 2009, despite the plummeting oil prices, and the instability in the global economy following the economic crisis,” said Mohammed Omar Abdullah, ADDED Undersecretary.

His figures showed a plunge in crude prices allied with a cut in the emirate’s oil output in line with a collective OPEC agreement to depress Abu Dhabi’s nominal GDP by around 34 per cent last year.

“At the same time the non-oil activities achieved reasonable growth rates during the same year, notwithstanding the considerable challenges they faced.”

He said all non-oil economic activities were able to maintain the positive growth rates achieved in previous years.
“The first five-year economic plan for Abu Dhabi marks an important pace as it puts forward real economic reforms, and presents clear and defined programs for diversification of sources of income and the structure of the economy, by raising private sector efficiency, and nurturing sectors of strategic development dimensions, with emphasis on targets far beyond the local market.”