The capital of the UAE, which accounts for most of the country’s oil wealth, would expand at total growth in gross domestic product (GDP) of over 500 percent by 2030, a prospectus by Abu Dhabi’s investment vehicle, Mubadala, seen by Reuters showed.
“The 2030 Economic Vision seeks to grow Abu Dhabi’s GDP by an average of seven percent per annum through 2015, and thereafter to stabilize growth at an average of six percent per annum for total growth in GDP of over 500 percent by 2030,” the document said.
Unlisted Mubadala held investor roadshows in Abu Dhabi and Dubai on Sunday as it plans to invest around Dh60 billion ($16.3 billion) in 2011.
In 2009, the Abu Dhabi government set up a long-term plan to turn the emirate into a knowledge-based economy and reduce its dependence on the oil sector.
Its 2030 Economic Vision aims to significantly expand the non-oil sector by 2030 to reach a balance between oil and non-oil trade by 2028.
“The government also intends to foster non-oil GDP growth at a higher rate than that of the oil sector, with a goal of reaching equilibrium in oil and non-oil trade by 2028,” the prospectus said.
“This growth is not expected to be consistent throughout the period, as different economic cycles and the fluctuation in oil prices will mean that rates of growth will vary from time to time.”
The economic vision focuses on 12 sectors for future growth, such as oil and gas, aviation, tourism and transportation.
The prospectus gave no new updated GDP figures. The last data available from the Statistics Center Abu Dhabi showed nominal GDP of Dh546.5 billion in 2009, and Dh666.7 billion in 2008.
Abu Dhabi, which makes up for a vast majority of fiscal spending and around 60 percent of the second-largest Arab economy, does not publicly release its budget data.
Last year, Abu Dhabi budgeted to spend Dh207.5 billion, forecasting a budget shortfall of Dh84.9 billion. It based its 2010 budget on $60 per barrel.
“These economic gains are expected to be achieved with the support of a sound monetary and fiscal policy designed to support Abu Dhabi’s businesses in increasingly competitive global markets,” the prospectus said.
“However, no assurance can be given that these economic gains will be achieved as anticipated or at all.”
Fiscal policy is a key tool in steering the UAE economy since the world’s No.3 oil exporter pegs its dirham currency to the US dollar.
