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Contribution of extractive industries to Abu Dhabi's GDP amounted to 5% in 2011

posted on 02/01/2013: 4634 views



The Value added to the activity of the extractive industry achieved a remarkable increase, from Dh 291.5 billion in 2006 to Dh 471.8 billion in 2011 at an annual growth rate of 10.1% on average during the period 2006-2011, while the growth rate of the value added to the activity reached 53% in 2011. This dramatic rise was attributed mainly to the increase in oil prices and oil production, according to Chapter IV of Productive Activities of Abu Dhabi Economic Report 2011 issued by the emirate's Department of Economic Development.



Extractive Industries: The extractive industry is the backbone of the economy of the Emirate of Abu Dhabi, and one of the most important components of the national income of the emirate, where oil revenues are used in construction of infrastructure projects, as well as other giant national industries. The contribution of extractive industry to the GDP of the Emirate of Abu Dhabi reached 58.5% in 2011, as a result of high oil prices in world markets, and the increase in production of oil in Abu Dhabi. OPEC average oil price rose from US$77.45 per barrel in 2010 to US$107.46 per barrel in 2011.



Total Fixed Capital Formation: The total fixed capital formation in the extractive industry activity rose from Dh 7.8 billion in 2006 to Dh 48.8 billion in 2011 at an annual growth rate of 44% on average during the period, while fixed capital formation in the activity grew by 11.6% in 2011.



Manufacturing Industries: The manufacturing industries activity is one of the vital economic sectors in the Emirate of Abu Dhabi. Abu Dhabi Vision 2030 focuses on the activity as an engine for diversifying the economic structure of the emirate, by investing in industries in which Abu Dhabi has more competitive advantage. This embodies the development of innovation and technology-based industries that are supportive of a shift towards a knowledge-based economy. The contribution of the extractive industries to Abu Dhabi's GDP amounted to 5% in 2011.



Value added: The value added to the manufacturing industry during the last five years increased significantly to reach Dh 32.9 billion in 2006, and continued to rise to Dh 40.5 billion in 2011, increasing at an annual growth rate of 4.2% on average during the period 2006-2011. The growth rate of the value added to the activity hiked to 22% in 2011, due to the great attention given by the Government of Abu Dhabi to this activity, and the efforts exerted to develop the activity according to best international practices.



Total Fixed Capital Formation: The total fixed capital formation in the manufacturing activity rose from Dh 9.6 billion in 2006 to Dh 34.4 billion in 2011, growing at an annual rate of 29% on average during the period 2006-2011,. This was attributed to the investment boom witnessed by the activity during that period, when many giant industries were established, most importantly the "EMAL", aluminium smelter complex and "Strata" aero structures manufacturing plant.

Agriculture, Forestry and Fishing: The agriculture, forestry and fishing activity receives particular attention and great support from the government of Abu Dhabi, which seeks to raise levels of self-sufficiency, and achieve food security in the emirate. This concern prompted launching development and marketing plans, guidance and awareness programs, introduction of modern agricultural techniques for conservation of water resources, in addition to guiding farmers to adopt high productivity, non-water depleting species and varieties of agricultural crops, which suit the emirate's prevailing climatic conditions.

Abu Dhabi government had developed and initiated programs to improve and raise farmers' incomes, introduce high quality marketable agricultural products and enhance competitiveness of local products. It always hosts international events and encourages participation in such activities. Efforts continue to set comprehensive infrastructure, and maintain sustainable development in the agriculture sector.

On the other hand, efforts are being made to realise Abu Dhabi government vision to develop a sustainable livestock sector. Important programs in this regard include supporting feed through the establishment of stores in feed distribution centres, and provision of feed at nominal prices, which will all contribute to maintaining the vitality of the livestock sector. Mentoring programs aimed at raising awareness and culture among livestock owners, were initiated to introduce modern methods in management of farms, and disease fighting. Many programs were meant to develop the sector, including genetic improvement of animals and artificial insemination, with the aim of breeding high yielding local strains to help achieve rewarding economic returns.

Abu Dhabi Government seeks protection and conservation of fisheries, by achieving balance between fishing practices; and ensuring sustainability and health of fish stocks, in order to promote economic development. Support is rendered to fishermen by providing needs, addressing difficulties and obstacles facing them, facilitating necessary funding for buying and renovating boat, and granting of interest-free loans. The protection of fisheries is carried out through several controls to fisheries management in the emirate, including the setting of I certain periods and specific seasons to catch some kinds of fish, and banning fishing during fish reproduction periods, in addition to raising consumer awareness of extinction threatened fish species, with aim to reduce demand for them, and protect such species from overfishing. The Contribution of agriculture, forestry and fishing to Abu Dhabi's GDP stood at 0.6% in 2011.

The value added to agriculture, forestry and fishing increased slightly during the period (2006-2011), rising from Dh 4.4 billion to Dh 4.8 billion, up by 1.9% on average during that period. Despite fluctuations in the rate of growth of the activity's value-added from year to year during the period referred to; however, the total value added, remained relatively stable, since the activity did not achieve significant positive growth rates, and did not experience significant slow down during the same period.

The growth rate of value added to agriculture, forestry and fishing, reached 0.9% in 2011, which was less than the average annual growth rate during the period (2006-2011).



Total fixed capital formation: The total fixed capital formation in the activity of agriculture, forestry and fishing, experienced successive hikes during the period (2006-2011). The average annual growth rate during that period amounted to 1.6%, while the annual growth rate of total fixed capital formation in the activity remained around 1% in 2011.



Electricity, Gas, Water and Waste Management Activity: Abu Dhabi Government attaches special attention to the activity of electricity, water, gas and waste management, as a supporting activity for all other economic activities. This activity witnessed remarkable development following the issuance of the law No. 2 in March 1998, by which Abu Dhabi Water '&' Electricity Authority was founded to replace the former Abu Dhabi Water '&' Electricity Department. This was accompanied by the opening of free investment for the national private sector and foreign investors alike, which contributed to raising the level of competitiveness among companies to provide the best offers and services in the field of electricity and water.



The government established the "Centre of Waste Management-Abu Dhabi", in December 2008 under the umbrella of the "Environment Agency - Abu Dhabi (EAD)", to act as the competent authority for monitoring and coordinating the activities of waste management across the emirate, and overseeing the implementation of the government's ambitious strategy in this regard.

The generation of electricity in the Emirate of Abu Dhabi grew at an annual rate of 10.4% on average over the last three years, reaching 46.4 thousand (GW / h) in 2011.The rate of production of desalinated water increased to 219.8 billion gallons in 2011, rising at an average annual rate of 17.3% during the period (2008 2011).

The continuing rise in the rates of generation and production of electricity and water is compatible with the need to meet the increasing consumption, due to urbanisation and industrial expansion, where electricity consumption rose to 43.3 thousand (GW / h) in 2011, and the consumption of desalinated water was 211.5 billion gallons in 2011. The contribution of the electricity, gas, water and waste management activity to the total GDP of the Emirate of Abu Dhabi, amounted to about 2% in 2011.



Value added: The value added to the activity of electricity, gas, water and waste management activities, recorded a remarkable increase during the period (2006 - 2011), from Dh10.42 billion in 2006 to Dh16.13 billion in 2011, at an annual rate of 9.14% on average during the period, while the growth rate of the value added to the activity stood at 10.5% in 2011, compared to 2010 Total Fixed Capital Formation: The total fixed capital formation in electricity, gas, water and waste management activity increased from Dh 6.6 billion in 2006 to Dh 20.9 billion in 2011, at an annual rate of 25.6% on average during the period (2006-2011), while the growth rate of capital formation in the activity reached 14.5% in 2011, compared to 2010.

No doubt that the steady growth demonstrates and justifies the interest paid to the activity of electricity, gas and water, and waste management activities on the part of investors in various government, public and private sectors; taking into consideration the feasibility of investing in this activity, which witnesses rapid development over time.



Construction and building: The construction and building activity is of particular importance, as one of the activities most linked to the national economy, as it implements projects required by other activities, in addition to carrying out the maintenance work for these projects. The activity includes a number of sub-activities, according to the International Standard Industrial Classification of economic activities, such as site preparation, construction of complete facilities or parts thereof; and installation and finishing of buildings.

The construction and building activity is mainly influenced by the demand resulting from population growth and direct investment. The activity contribution to GDP rose from 6.8% in 2006 to more than 10% in 2011, as a result of the construction boom witnessed by the emirate during the last five years, as several construction projects were completed, to meet the needs of population increase, and the growth of various economic activities. In 2011, the number of building permits for all purposes rose to 13559 licenses, increasing by 17.5% compared to 2010.



Value added: The value added to the construction and building activity witnessed remarkable development during the last five years, as a result of the economic development and prosperity experienced by the Emirate of Abu Dhabi during that period, as the value added to the activity increased significantly from Dh 36.9 billion in 2006 to Dh 81 billion in 2011, at a rate annual growth rate of 17% on average during the period (2006-2011).

Total fixed capital formation: Many investment projects were carried out during the past five years, resulting in the increase of the total fixed capital formation in the activity of the construction of Dh 2805 million in 2006 to Dh 4862 million years 2011, recording an increase of Dh 2057 million, and a growth rate of 11.6% on average during that period. - Emirates News Agency, WAM

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