UAE

Aired August 2004

This is Abu Dhabi, the driving force behind the booming United Arab Emirates, the Middle East’s second-wealthiest country and the fourth-richest nation in the world. Abu Dhabi has a diversified economy, a business-friendly government, and a safe, cosmopolitan lifestyle; no wonder investors from all over the world are doing business here.

The United Arab Emirates was created 34 years ago under the strong leadership of His Highness Sheikh Zayed Bin Al Nahyan, president of the United Arab Emirates and ruler of Abu Dhabi, and Sheikh Khalifa bin Zayed Al Nahyan, crown prince of Abu Dhabi and deputy commander of the armed forces. The UAE includes seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah.

Today, Abu Dhabi, the UAE’s official capital and economic leader, has become one of the worlds most politically and economically stable countries and it offers unrivalled business and investment opportunities.

The UAE has some 98 billion barrels of oil reserves, which is around 10 percent of the world’s total oil supplies. Most of these are concentrated in Abu Dhabi, which accounts for 85 percent of the UAE’s gross domestic product.

Yet Abu Dhabi’s prosperity is based not just on oil, but on visionary leadership. Thanks to careful management of oil revenues ever since oil was discovered in the area in 1962, Abu Dhabi is not only one of the world’s wealthiest countries but also has one of the highest standards of living on the planet, with no unemployment, virtually no crime, exceptional social services and infrastructure, a sophisticated international lifestyle and everything investors need to create a successful business.

In addition, for the past two decades the government has been diversifying the economy away from oil and gas, and now Abu Dhabi offers outstanding investment opportunities in a range of sectors.

TRADE AND INDUSTRY

Over the past 20 years, the UAE's economic diversification program has aimed at developing the industrial base away from oil and gas. Although Abu Dhabi posses nearly 10% of the world oil supply, the emirate’s leadership has realized that diversification of the economy is essential to sustainable, long-term development.

This shift in focus to develop the industrial sector will lead to more opportunities for international players to invest in solid and growing industries, utilizing Abu Dhabi as a stable and strategic base for operations.

Industrial growth enhanced by the development of special economic zones, which will profit from the influx of international firms. The Industrial City of Abu Dhabi is just one example of the Emirate’s success in encouraging greater foreign direct investment. Having already attracted investments in excess of $1.5 billion US, the Industrial City of Abu Dhabi and future special economic zones in the emirate are well positioned to reach its projected target to attract investments worth $10 billion US.

The free economic policy and non-taxation for individuals, companies and foreign company branches, plus customs duty exemption for imported raw materials used in national industries, free movement, easy transportation and low rent for industry, all contribute to an ideal environment for industrial investment of national and foreign capital.

Abu Dhabi’s location qualifies the city to play an active commercial role as a connection point for shipping and a facilitator of goods transportation between the East and the West. With no shortage of educated and motivated professionals, Abu Dhabi offers some of the most exciting and promising returns on investment and is eager to continue working with international companies in the public and private sector drive to diversify economic activities and achieve sustainable, long-term economic growth.

Based on the success of the partial privatization of the power generation and water desalination sectors in Abu Dhabi, the local and federal governments are looking at entering into long term partnership relations with foreign firms in new sectors such as medical care, educational and training services. In the past three years the Abu Dhabi government saved billions of dollars in public spending and improved productivity by 30 percent as a result of its initiative in the power sector. US companies in particular enjoy a good reputation in this market for their willingness to transfer technology and know-how and assist local governments in building successful and efficient private-public organizations.

FINANCE

During recent years, Abu Dhabi has been a very successful economic performer, attaining one of the highest economic growth rates in the world. Good governance has been a critical element within this virtuous path: the Abu Dhabi financial sector has done what a well-functioning system is supposed to do: channel financial resources - domestic and foreign - into productive investment. More specifically, Abu Dhabi's policymaking and regulatory institutions have encouraged healthy competition and development in this sector while also ensuring broader economic stability through effective and coherent monetary, fiscal and foreign exchange policies.

There are now more than 50 banks both international and domestic, a sophisticated banking system and now the stock exchange in Abu Dhabi, which has enhanced the emirates financial base. While new products and services, portfolio management, and broker revenues are set to support the country’s banks in their growth in the future.

TOURISM

Tourism is another sector with excellent growth potential. Abu Dhabi has stunning landscapes, from desert to beaches, as well as varied entertainment options and some of the world’s finest resort and business facilities. In fact, the worlds second-ever seven-star hotel now dominates Abu Dhabi’s skyline. Visitors can haggle for handicrafts in traditional souks or shop for boutique fashions in air-conditioned malls. They can dine in luxurious surroundings or go on camel safaris in the desert to sample traditional Bedouin hospitality, visit the splendid gardens of Al Ain or dance the night away in a sophisticated nightclub. With two international airports, an extremely safe environment and superlative facilities, Abu Dhabi is set to become a top destination for business and leisure travellers.

The oasis of Al Ain is a premier tourism destination thanks to the vision of Sheikh Zayed Bin Sultan Al Nahyan, President of the United Arab Emirates and ruler of Abu Dhabi. Al Ain is now one of the Arab world’s greenest cities, filled with gardens, fountains, tree-lined boulevards and buildings kept to a human scale with no high-rises to mar the view. Al Ain is home to United Arab Emirates University as well as Abu Dhabi’s largest museum and biggest zoo.