- Abu Dhabi aims to triple GDP
- Strategy expected by end of year
- Ambitious targets for non-oil sectors
Abu Dhabi will soon launch a new economic strategy aimed at tripling its GDP by 2045, sources told AGBI.
The strategy, expected to be released by the end of the year, outlines a broad transformation that seeks to further diversify the emirate’s economy, significantly reduce its reliance on oil, and position Abu Dhabi as a major global centre for trade and finance.
The total value of the emirate’s economy (including both oil and non-oil sectors) reached AED286 billion during the first quarter of 2024, according to the Department of Economic Development.
The plan sets ambitious targets, including increasing investments by almost five times and a rise in non-oil exports by almost seven fold by 2045.
The growth will be driven by sectors such as healthcare, financial services, hydrogen, energy storage and advanced manufacturing, particularly in high-tech fields like semiconductors.
The private sector is expected to play a significant role in this transformation, the source said.
Executives from Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics, two of the world’s largest chipmakers, recently visited the UAE to explore possible chip-making operations in the UAE.
These projects could involve multi-billion-dollar complexes with investments exceeding $100 billion.
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In May, AGBI reported that the UAE plans to allocate AED23 billion ($6.3 billion) to support local manufacturers in line with its economic diversification goals.
Abu Dhabi, the wealthiest UAE emirate, has also made strategic investments in chipmakers, biotech, agritech, renewables, and fintech businesses through Mubadala Capital, the asset management arm of sovereign fund Mubadala Investment Co, and other state entities.
The emirate’s strategy aims to introduce new policies to improve market openness, boost access to finance and invest in connectivity and infrastructure in order to attract more businesses, investors and talent.
Abu Dhabi’s vision also includes creating a “green falcon economy,” which emphasises the role of technology and innovation for sustainable development, with a heavy focus on renewable energy and the energy transition.
This strategy aligns with long-standing efforts by the UAE and other Gulf states to diversify their economies away from hydrocarbons.