DUBAI: Abu Dhabi probably won’t reach its target for industrial growth by 2020 and will need to lower it, a senior government official said.

The oil-exporting emirate is investing billions of dirhams to diversify its economy, but the goal for industry is hard to reach, Ayman Al-Makkawy, director-general of the emirate’s new Industrial Development Bureau (IDB), said.

The original target was for industry to contribute 19 percent of the economy by 2020 and 24 percent by 2030. It now accounts for about 5.9 percent.

“Progress has been flat after the (global) crisis. It is not impossible, but it is difficult to achieve,” Al-Makkawy said at a MEED conference.

“We may take a fresh look at the original targets. The world has changed after the targets were set a few years ago”, he added.

IDB was set up last month through a new law as the governing body for industry in Abu Dhabi, the capital of the UAE.

Most of Abu Dhabi’s industrial GDP comes from government-owned operations in chemicals and base metals.

Several new initiatives will be rolled out to encourage private-sector industry, Al-Makkawy said.

Some of the initiatives include securing approval for gas supply from the government for new projects, stimulating downstream industries and expansion of free zones, he said.

The emirate has set up industrial areas and zones in the last couple of years, including the Khalifa Industrial Zone, which has begun attracting companies from overseas to set up industries.

Gulf states are likely to see their oil and gas revenues drop next year but heavy government spending and increasingly energetic private sectors will keep economic growth robust, a Reuters poll suggested in September.

The UAE is one of the wealthiest countries in the world, with per capita income of $48,200 in 2012, according to World Bank figures.

Abu Dhabi’s bourse, meanwhile, crossed the 4,000 mark for the first time in five years, playing catch-up to gains on Dubai’s market, which extended a rally driven by the recovery in the real estate sector.

Abu Dhabi’s index climbed 0.3 percent to 4,001 points, it’s highest close since September 2008.

The market is up 52.1 percent year-to-date, while Dubai’s index has rallied 91.1 percent in 2013.

Shares that were previously lagging the benchmark performance led gains on Monday. National Bank of Abu Dhabi NBAD.AD and Abu Dhabi National Energy (TAQA) advanced 1.6 and 3.8 percent respectively.

“Abu Dhabi is just seeing a catch-up move, I don’t think it will trigger a major change in sentiment,” said Sebastien Henin, portfolio manager at The National Investor.

Dubai’s measure rose 1.5 percent to finish at 3,100 points, a new five-year high. Real estate stocks rallied, buoyed by a strong recovery in the property prices and rent and optimism over demand for new projects.

Emaar Properties and Deyaar Development jumped 3.4 and 5.3 percent respectively.

“Investors are more comfortable to invest in Dubai real estate, which reflects the economic recovery. It shows a vote of confidence, which is lacking in the Abu Dhabi real estate,” Henin said.