Abu Dhabi to See Double Digit Growth in 2010, 2011

(MENAFN - Khaleej Times) Ahmad Abu Ghaida, Acting Director General of Abu Dhabi Economic Planning said that industrial and real estate expansion pursued by the capital may help the emirate record double-digit growth in 2010 and 2011.

Participating in a panel discussion during the release of IMF's regional economic outlook report, Ghaida disagreed with fund's forecast and said that the emirate of Abu Dhabi constitutes about 55 per cent of the country's GDP and the capital city would see massive investments in real estate in the coming months. He said the growth in the UAE might have paused for now but it is certain to resume in the second half of this year.

"There are major shortages in the housing market in Abu Dhabi and Dubai market is acting as a cushion for Abu Dhabi. In fact, a lot of people, more than ever, are commuting from Dubai to Abu Dhabi." Ghaida said that the major developers in Abu Dhabi such as Sorouh and Aldar are going ahead with their plans and that is going to be a key growth sector in short to medium term.

He cited the renewable energy project, Masdar, expansion of basic industries such as Emirates Steel, expansion of communication sector, Mubadala's foray into aerospace and planned expansion of emirate's sea and airports.

"We have looked at capital expenditures over the next four years in order to assess the gross domestic contribution (of these expansion plans). I would not be surprised if Abu Dhabi registers double digit growth in 2010 and 2011. It is highly possible. That is why I am having some issues with the forecast," he said.