Abu Dhabi's economy is estimated to grow at 4.5 per cent this year, Mohammad Omar Abdullah, Undersecretary in the Abu Dhabi Department of Economic Development, said here on Tuesday.
Speaking to reporters on the sidelines of the fourth annual UAE Global Investment Forum 2011, Abdullah said inflation is forecast at around 3 per cent for 2011 and 2012.
Speaking at the forum, Abdullah said amid the unrest and political chaos in the Middle East and North Africa, the UAE provides a unique model of political and economic stability in the region which enhances its chances to attract more investments.
"This comes in conjunction with packages of incentive, favourable procedures and sound economic legislation to stimulate the investment environment. In the forefront comes a new law on foreign investment and another for the protection of competition in addition to amendments to laws on the protection of intellectual property and patents and industrial designs."
He said President His Highness Sheikh Khalifa Bin Zayed Al Nahyan ordered the allocation of Dh5.7 billion for infrastructure projects in the northern emirates, which marked a real addition to the country's investment stimulus packages.
Citing a recent industry report, Abdullah said the UAE attracted more than 279 foreign direct investment projects over the past year worth a total of about US$10 billion.
He said the economy of the emirate of Abu Dhabi exemplifies a unique model capable of efficiently dealing with economic crises.
"[The] recent global crises were a real test for the soundness and strength of the economy of the emirate, and its ability to cope with all international and regional economic variables. The crisis also revealed and established the extent of the economy's integration into the global economic system and the degree of openness of the emirate to global markets," said Abdullah.
He said the global financial crisis "had undoubtedly reflected that the booming development at all levels in Abu Dhabi throughout the past few years is not a coincidence or a temporary effort, but is the product of visionary sound and thoughtful planning, supported by the attentive follow-up of the leadership of the emirate.
Abdullah said Abu Dhabi is following the path of the roadmap drawn by the Abu Dhabi Economic Vision 2030, which aims to release the hidden potential in the economy and stress the openness to foreign investment through the adoption of sound policies and legislation to stimulate development and investment in all fields.
Abdullah said in accordance with the vision of Sheikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, Abu Dhabi aims to be among the best five governments in the world.
"The economy of the emirate is witnessing extensive development effort, reforms and modernisation that aim to turn the local business environment into a best favoured destination and haven for investments," he added.
Speaking at the forum, Group Chief Economist of the National Bank of Abu Dhabi said in 2010 the Abu Dhabi economy is estimated to have ranked the 44th largest economy in the world.
"The share of Abu Dhabi in the GCC rose to an estimated 17 per cent in 2010 and its share is expected to rise to 18 per cent to 19 per cent by 2012. Forecasts indicate Abu Dhabi may rank as the 41st largest economy in the world by 2015.
"The Abu Dhabi economy is projected to be about 40 per cent of the Saudi economy in 2015," Gokkent added.
Rashid Al Beloushi, deputy chief executive at the Abu Dhabi Securities Exchange, told the conference the fundamentals of the market are healthy.
"Three IPO's were launched in the first quarter," he said. – Gulf News
