As we all know that UAE is recovering very fast after global economic crisis hits in 2009. According to economic experts Abu Dhabi seems to be beating Dubai as the fastest growing city in UAE. An official at the Department of Economic Development had suggested that the Abu Dhabi growth rate will reach up to 5% in next year while as Dubai growth rate will reach up to 4.5%.
Giyas Gokkent, Chief Economist at National Bank of Abu Dhabi, said: “I would assume that Abu Dhabi is the fastest growing in the UAE amongst all the emirates. If you look at the growth rate in Dubai, it was projected to be maybe around 4.5%. So Abu Dhabi seems to be growing at a more rapid pace.”
According to Mr. Gokkent, growth rate in Abu Dhabi is fueled by the Two growth Engines.
(1) The Oil Sector
(2) The Non-Oil Sector
Non-Oil Sector has been growing at 23% and it is likely to continue in up coming years. According to Mr. Gokkent real estate prices in Abu Dhabi have rises from AED800/sqrft to average AED1,200/sqrft in areas that are open to expats for property purchase. Other sectors that have increased sharply are Banking System, Manufacturing Industry, Transportation and Hospitality. Services sector also appears to have picked up.
Mr. Simon Williams, Chief Economist for Middle East & North Africa at HSBC, said: “Growth had only begun to accelerate in 2012, it built momentum this year, and it is to continue over the next year. I think the outlook for 2014 is pretty good. I think all production will be flat but oil earnings will support further growth in public spending, which will be driving the economy on.”