Recession trims Abu Dhabi's GDP by 18% in 2009

ABU DHABI - Abu Dhabi's gross domestic product or GDP trimmed 18 per cent year-on-year in 2009, after peaking a high of 24 per cent, as financial crisis brought down the record high oil prices.

By Haseeb Haider

Published: Tue 9 Nov 2010, 11:05 PM

Last updated: Mon 11 Oct 2021, 1:40 PM

“It could be argued that the economy of the Emirate of Abu Dhabi had 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, the undersecretary of Department of Economic Development Abu Dhabi, in his foreword to ‘Annual Economic Report for the Emirate of Abu Dhabi – 2010’. To be released in phases, the report will be the first official account on the impact of the devastating global financial crisis, on an economy that posted a double-digit growth in five year 2003-2008, on higher oil revenues.

The drop in oil prices, and oil exports of the emirate, led to a retard in oil GDP growth of 34 per cent in 2009, in the interim, at the same time the non-oil activities achieved reasonable growth rates during the same year, notwithstanding the considerable challenges they faced; where non-oil GDP growth rate marked six per cent.

“All non-oil economic activities were able to maintain the positive growth rates achieved in previous years, and although those rates were comparably lower than before,” he said.

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 programmes 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.

Nasser Ahmed Khalifa Al Suwaidi, the chairman of Department of Economic Development said that 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, by setting off the potential 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 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 Abu Dhabi in 2009, noted that “Economic Vision” 2030, had set to reach that figure by the year 2015.

haseeb@khaleejtimes.com