Abu Dhabi

Abu Dhabi is the largest of the seven Emirates in the UAE, with an area of 68,000 sq. kms, constituting 86% of the UAE . Abu Dhabi City, which is the capital of the UAE, is an island on the Gulf with an area of about 60 sq. kms. It comprises the islands of Das, Seer Bani Yas, Mubarraz, Dalma, Saadiyat and Umm Al Nar. The Emirate has other cities like Dhafra, Ruwais and Wathba in the Western sector.
The Eastern sector includes Al Ain, which has a series of mountains having natural spring water which runs underground.

Al Ain city is distinguished for the archaeological sites at Hili, green pastures, and also the Emirates University. Its own International Airport was inaugurated in 1994. Al Ain also has a number of Parks, a Zoo and a Sports City at Hili.

Foreign Trade and Facilities:
Abu Dhabi Emirate is regarded as a very important center of the re-export trade since it shares borders on the land with Saudi Arabia, Qatar and Oman. This is assisted by the fact that it has the required infrastructure including modern ports and airports, and a well-developed road network with modern fly-overs, which links the Emirates of the country with the other member countries of the Gulf Co-operation Council.
The fact that the economy allows for free trade and the absence of taxes and duties has made Abu Dhabi a center of attraction for both investment and business, since it also occupies a strategic location in the Gulf, and lies almost mid-way between the continents of Europe and East Asia. This has led to the attraction of investments and traders from all over the world.
Accordingly, there has been an appreciable rise in the economic prosperity and progress in the Emirate in different economic sectors particularly in trade.
It is expected that the present upswing in the economy would continue in the forth-coming years. It wouldbe mainly due to the strategic location of Abu Dhabi as a center of re-export trade in the region.

Agriculture:
The agricultural sector received the special attention of the President, His Highness Sheikh Zayed Bin Sultan Al Nahyan, and in accordance with his instructions investments were allocated for this sector. The Nationals also played an active role in developing this sector by implementing the belief of H.H. the President, that the agricultural sector constitutes an important economic enterprise, thereby contributing to the overall revenue of the
country.
The Ministry of Agriculture & Fisheries has played an important role in developing this sector, by providing many facilities such as consultation and long term loans to the farmers, in addition to the supply of water for irrigation purposes, and construction of reservoirs and their maintenance. The efforts exerted over the recent years resulted in substantial accomplishments. The result was that the cultivated land area increased from 14,100 hectares in 1972 to 72,374 hectares in 1994. Meanwhile, the value of the agricultural production went up from Dh. 154 million, in 1972 to 4,210 in the year 1994.

Oil and gas sector:
The UAE is one of the principal producers and exporters of crude oil and natural gas in the world. The oil sector has been given substantial importance by the Government due to the crucial role it plays, and since it is the main financer for the developmental process. The sector's affairs are well organized, with all output and export operations being subject to accurate planning as dictated by the country's interest, and ensuring realization of the main objectives in the future.
Despite the turbulence that prevailed over the world oil markets during the recent years, the programmes of expansion and development of the crude oil installations proceeded according to original plans. The aggregate volume of investments carried out in this field during the years 1992, 1993 and 1994 were approximately Dhs. 7.5 billion, Dhs. 7.9 billion and Dhs. 7.8 billion respectively. The contribution of the Crude Oil Sector to the country's Gross Domestic Product (GDP) has been very high.. In 1972, the revenue of this sector was Dhs. 4.1 billion, while in the year 1994 it reached Dhs. 45.2 billion, though its individual contribution decreased in comparison to that of the other economic
sectors.
Natural gas is of no less importance than crude oil as a source of energy and a raw material for many industries. It is used in two ways it is either liquefied and exported, or directed towards petrochemical industries. In order to benefit from this national wealth, the Government set up many projects at Das Island, Jebel Ali, Ruwais and other
places.
The Emirate of Abu Dhabi is the principal oil producer and reservoir of crude oil in the UAE. It possesses 11% of the world's oil reserves. According to recent statistics, its oil reserves are estimated to be more than 100 billion barrels, while the natural gas reserves are estimated to be 57.6 billion cubic meters.

Industry:
The industrial sector is regarded as a new development in the country. The Government has given a special importance to this sector particularly since it offers one of the options with regard to the development of a production sector. Accordingly, there have been major investments in gigantic industrial projects, with the Government encouraging the private sector to build up the industrial sector with many large-scale projects. The Government has not only provided assistance, but also various facilities through the Emirates Industrial Bank.
The Central Bank report shows that the Industrial sector contributes heavily in improving the Gross National Product of the country. In Abu Dhabi, Government managed industries are presently the largest, with the GIC General Industries Corporation being in direct control of these industries, which play an important role in the development of industry in the Emirate. The GIC is also responsible for charting out a strategy for industry in the Emirate and encouraging the private sector and the present industrial ventures in Abu Dhabi.
The most important industrial units managed by the corporation are the Al Ain Cement Plant, the Abu Dhabi company for flour and animal fodder, the Abu Dhabi factory for plastics and pipes, the Abu Dhabi plastics and construction block, and the construction block manufacturing plant at Wathba.

Transportation and Warehousing :
The Transportation and Warehousing sector plays an important role in the growth of the UAE. An excellent road network links the different parts of the country and highly sophisticated means of communication links it with the outside world. This is in addition to efficient warehousing capacity, which meets the substantial growth in trade. There is a large number of refrigerators, stores and huge warehouses. Due to its influence on the economic and social activities in general, this sector has been given special importance by the Government, with substantial investments being allocated to execute the projects of this sector. The UAE now possesses a modern, developed and highly efficient transportation and storage sector. It keeps abreast of the latest developments in the transportation and communication sciences. The UAE airports are equipped with the latest systems, and operate in accordance with the most advanced quality standards.
The road networks, highways, fly-overs are highly efficient, and the seaports possess the latest machinery for handling of goods and their loading, unloading and storage.

Mina Zayed:
Mina Zayed contributes to the growth of the economy with its positive role in regulating the operations of import and export. Mina Zayed is very well-equipped with all the potential equipment and instruments to support the economic projects for development in the country. Mina Zayed is located in the Northeast sector of the island of Abu Dhabi, and began its formal operations from June, 1972. The port has 21 berths, which are 4,300 meters long, and the depth is between 9 and 11.5 meters. The Port is expanding its facilities and potentials every year and is presently handling cargo load of more than 5 million tons annually. This includes receiving and handling of all kinds of ships, vessels, general cargo and oil rigs.

Three Industrial Zones in Abu Dhabi, Al Ain and Ruwais
The efforts exerted by the Government of Abu Dhabi Emirate towards diversifying the sources of national income thereby ceasing reliance on oil as the sole source of income, and with the aim of encouraging and developing the UAE industrial sector in its various aspects. This led to the adoption of a resolution by His Highness Shaikh Khalifa Bin Zayed Al Nahyan, Abu Dhabi Crown Prince, Deputy Supreme Commander of the Armed Forces and Chairman of the Executive Council, to establish three industrial zones in Abu Dhabi Emirate to be located at Abu Dhabi, Al Ain and Ruwais.
The construction process will be supervised by the GIC in Abu Dhabi, which will co-ordinate with the Municipality Departments of Abu Dhabi and Al Ain so as to determine the appropriate sites and land areas required to set up the three zones. His Highness also approved allocation of Dhs. 100 million to provide the industrialists with soft loans. Accordingly appropriate rules and means shall be laid down so as to ensure provision and repayment of the loans through proper means. The GIC is in charge of laying down the criteria and rules of giving loans to industrialists. Meanwhile, the authorities concerned in the Emirate are planning to set up the new industrial cities in the vicinity of seaports, highways and areas that have civic communities.
The Government of the Abu Dhabi Emirate intends to focus on the industrial projects that would positively contribute to increasing income on the public economy level. On their part, the parties concerned in the Emirate will provide many incentives for the projects that would contribute to increasing the national income. Most prominent of these incentives are making available the necessary utilities at subsidized rates; giving them priority as regards the allocation of industrial plots located in distinct sites against appropriate leasing fees; providing soft loans; granting tax exemption on their imports of raw materials and equipment so as to enable these pioneering projects to realize utmost success and shoulder their ways towards the local and regional markets.
The Abu Dhabi National Oil Company (ADNOC) has developed the first petro-chemical complex in the country aimed at meeting the requirements of the growing market for petro-chemical products in the world. This petro-chemical complex along with several other industrial projects including ship building, aircraft maintenance, development of electrical power, electronics industry and other Offset programmes are likely to make Abu Dhabi the focal point of trade and industry in the region.

Energizing the future:
One of the major projects being launched at present is the development of the LPG from the Bab field. According to the present provision, 1.5 million tons of associate gas is to be produced from the on-shore Bab field. This gas is mainly to be utilized for the ambitious projects for generating electrical power and desalinating seawater.
The gigantic project has also envisaged taking the gas from Bab through Tawelah to Dubai. The 120-km pipeline is expected to add a new dimension to the industry of the UAE. Abu Dhabi's gas is expected to provide the industry in the UAE with the basic form of energy required to run the future high-tech industries.
The Liquid Natural Gas (LNG) coming mainly from the offshore fields is also being upgraded to serve new markets in the growing demand for gas in the fast developing states of East Asia. After Japan, South Korea and countries like Thailand may become potential markets for Abu Dhabi's Gas. The major feature of development would also focus on the development of the shipyard at Musaffah. Here in co-ordination with a very well known international US company, ships and vessels up to 10,000 tones are to be fabricated. This would make Abu Dhabi a pioneer center for ship building in the region. These relatively smaller ships and vessels would mainly serve the oil and gas industry as tug boats, supply vessels and mobile workshops to serve the oil fields lying off-shore. In doing so, Abu Dhabi would attract the business of oil field supplies in the region, which is known to have 60% of the world's energy reserves.

Maintaining the future:
Another significant development would be in the field of aircraft maintenance. The aircraft would also prove to be a major source of transport and communication, in developing the energy industry. The project, which is being launched with a very well known international company, is expected to make Abu Dhabi an all important center for aircraft maintenance and repair.
All these projects and several others would put Abu Dhabi in the front seat of the energy industry, both in terms of oil and gas and also as a major producer of petro-chemicals which would serve the high-tech development of industry all over the world.
Another significant development, which is underway, concerns the Sadiyat Island project, which is expected to open a new era in the history of commerce in the region.
The US$ 3 billion project envisages the expansion of Sadiyat and the surrounding area into a vast storage and warehousing facility.
The object is to make the region an important conduit for re-export and transit trade. With the increasing frequency of ship movement, and with the Gulf region becoming perhaps the most active and busy area for international commerce, Sadiyat would serve as one of the key focal points where exporters would be able to have warehousing facility to store their products, before being targeted for the consumer market.

Future Dynamics:
The Abu Dhabi authorities are convinced that Sadiyat would ultimately become one of the most important transit points of trade on the world map. This is in view of the fact that some of the ambitious projects in the field of energy and power are being launched around the same location.
This, coupled with the Musaffah shipyard can very well turn Abu Dhabi into a viable entity in regional and international commerce. Another important industrial development is likely to take place in the food processing business. The Abu Dhabi planners are aiming to diversify revenue and to move swiftly towards gaining self-reliance.
Food processing technology is being developed fast to ensure that farm and fish products are exported to earn revenue. Already the agro-industry of Abu Dhabi has produced remarkable results. The Planning Authorities in the UAE say that 40% of the GDP now comes from the private sector. With the privatization campaign in full swing and many major public sector projects being handed over to the private sector, a major upsurge in the economy is expected. The surplus liquidity in the market is being regulated and utilized to serve national development.

Avenues for trade:
One of the very significant if not unique features of trade and commerce in Abu Dhabi is the combination of business with the defence requirements.
This is very much evident from the biennial International Defence Exhibition - IDEX which commenced in 1993 after the second Gulf conflict, and which presents new facets for trade - as probably for the first time civilian commerce has been linked with the largest business sector of the world involving sales of defence equipment estimated to be around US$ 1 trillion annually.
IDEX '93, '95 and '97 have proved beyond doubt the significance of this combination of the two business sectors. Deals and transactions involving billions of Dirhams have been conducted through these exhibitions which have now become the focal point of trade involving defence equipment and the requirements of industry which provides hi-tech hardware and electronic software.