Background

Abu Dhabi is the capital of the United Arab Emirates and is also the Emirates’ second largest city. This oil-Persian Gulf island is made up of 67,340 sq km and its estimated population is 860,000.

Abu Dhabi is a key hub in the Emirates given that it is the seat of the United Arab Emirates Government and also the home of the Emarati Royal Family. The city is in the process of transformation and, indeed, is now widely viewed as a major cultural and commercial centre in the Gulf. Abu Dhabi is a huge success story for UK exporters and investors.

Abu Dhabi generates an estimated 15 per cent of the GDP of the United Arab Emirates and its strategic location sees it provide a home to important financial institutions - including the Central Bank of the United Arab Emirates - as well as being the HQ of many multinationals.

Economy

Abu Dhabi is one of the world's largest producers of oil - it holds 9 per cent of the world’s proven oil reserves and almost 5 per cent of its natural gas. However, Abu Dhabi has in recent times attempted to diversify its economy through investments in financial services, tourism and other potential high growth sectors.

The vision of Abu Dhabi in terms of its future economic direction is evident in its Economic Vision 2030 as set out by Government’s Policy Agenda. The government has stressed the importance of adopting industrial modernisation policies by correcting the educational systems, keeping pace with state-of-the-art technologies, establishing and developing vocational training centres, restructuring industrial projects and supporting companies' scientific research centres.

Abu Dhabi is moving towards sustainable development and growth and it is felt this will be achieved through the expansion of a number of strategic economic sectors - many of which represent opportunities for UK firms. These include: oil and gas, petrochemicals, metals, aviation, aerospace and defence, pharmaceuticals, biotechnology and life sciences, tourisms, healthcare equipment and services, transportation, logistics, educations, medias, financial services and telecommunications.

Investment climate and opportunities

Abu Dhabi is ripe for growth. The recession of the past 12 months has impacted on the city, however, long term prospects are extremely positive given its status as an oil rich Emirate and key trading partner of the west. Opportunities exist for UK exporters in numerous sectors. Areas of particular interest include:

Healthcare and related products

According to a government report, the UAE population is expected to grow to 6.6 million by 2010. In 2001, The Health Authority-Abu Dhabi (HAAD) was established by a royal decree with a mandate to manage all the Ministry of Health hospitals and PHCs within Abu Dhabi. The aim of the HAAD is to upgrade and operate all Abu Dhabi hospitals according to accredited international standards. The HAAD is said to have had an open budget in recent years, of which a major portion is spent on upgrading current hospitals. In 2007 HAAD launched SEHA, an independent, public stock company to oversee the operations of eight public hospital systems totalling 14 facilities, 2472 licensed beds, more than 55 primary health clinics and 14,350 employees in Abu Dhabi. Recent developments indicate that the private sector will play a bigger role in the healthcare industry, particularly because of the new health insurance schemes and the goal of the UAE government to treat complex operations in the country, rather than sending patients abroad.

Construction

The Abu Dhabi construction market is one of the most dynamic markets in the region. Projects worth US$10.16bn are in various phases of completion; US$5.17bn has been invested for airport development, and US$3.45bn for road infrastructure projects. The potential of the UAE's construction sector is recognised globally. All major projects require international construction project management firms to supervise work execution, representing opportunities for UK firms to provide such services.
Some of the mega infrastructure projects for Abu Dhabi are:
• Saadiyat Island – US$27bn
• The Al Raha Beach Development – US$14.68bn
• Shams Abu Dhabi project: – US$6.8bn
• The Abu Dhabi Airport Expansion – US$6.77bn
• The Mohammed Bin Zayed city – US$1.36bn
• The port and industrial zone at Taweelah – US$2.17 bn

Air conditioning and refrigeration equipment

Extensive construction activity, population growth and harsh climatic conditions Abu Dhabi an obvious growth market for air conditioning and refrigeration equipment. Peak temperatures over 115 degrees F and high humidity mean cooling equipment is a necessity almost all year round. The current market trend is towards high-rise buildings and large-scale luxury hotels and residential apartments. These will generate a higher demand for air-conditioning systems, while the market for complex, centrally packaged air-cooled water chillers is also growing. The growth in size of the UAE air-conditioning industry generally has led to the establishment of major local manufacturers of central air-conditioning equipment.