The Abu Dhabi Economic Vision 2030 This document is developed by: 1 T H E A B U D H A B I E C O N O M IC V IS IO N 2 0 3 0 Summary of Mandate I n 2006, His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Executive Council, mandated the General Secretariat of the Executive Council, the Abu Dhabi Council for Economic Development and the Department of Planning and Economy to develop a long-term economic vision for the Emirate. This mandate was given in order to deliver upon the vision of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, Ruler of Abu Dhabi, for the ongoing economic success of Abu Dhabi. The expectation was the creation of a long-term roadmap for economic progress for the Emirate through the establishment of a common framework aligning all policies and plans and fully engaging the private sector in their implementation. The initiative builds upon the foundations set by the Abu Dhabi Policy Agenda 2007/2008 and was produced by a taskforce joining stakeholders from the public sector and private sector. The taskforce received extensive expert support from internationally renowned institutions. This taskforce was mandated with two key tasks: 1. To conduct an exhaustive assessment of the key enablers for economic growth, 2. To create a comprehensive long-term economic vision, with explicit targets, to guide the evolution of the Abu Dhabi economy through to the year 2030. The year 2030 represents an important milestone for the Emirate of Abu Dhabi. Baseline growth assumptions reveal that Abu Dhabi could achieve tangible levels of economic diversification by that time. This document therefore contains the “Abu Dhabi Economic Vision 2030” and associated targets, prepared by the Economic Vision Taskforce and approved by the Abu Dhabi Executive Council. November 2008 2 T H E A B U D H A B I E C O N O M IC V IS IO N 2 0 3 0 Table of Contents Summary of Mandate 1 Table of Contents 2 Context and Executive Summary 5 The Vision 17 Required Policy Priorities; Areas of Policy Focus and Associated Objectives Section One 23 Abu Dhabi’s Economic Policy Priorities 1. Building a Sustainable Economy 24 2. Ensuring a Balanced Social and Regional Economic Development 35 approach that Brings Benefits to All Section Two 45 Abu Dhabi’s Seven Areas of Ongoing Economic Policy Focus 1. Build an Open, Efficient, Effective and Globally Integrated Business 46 Environment 2. Adopting Disciplined Fiscal Policies that are Responsive to Economic 56 Cycles 3. Establish a Resilient Monetary and Financial Market Environment with 62 Manageable Levels of Inflation 4. Drive Significant Improvement in the Efficiency of the Labour Market 73 5. Develop a Sufficient and Resilient Infrastructure Capable of Supporting 78 Anticipated Economic Growth 6. Developing a Highly Skilled, Highly Productive Workforce 91 7. Enable Financial Markets to Become the Key Financiers of Economic 100 Sectors and Projects Section Three 113 Engines of Abu Dhabi’s Future Economic Growth Section Four 123 Measures of Success Section Five 137 Delivering the Abu Dhabi 2030 Economic Vision Acknowledgements 138 Context and Executive Summary The Abu Dhabi Economic Vision 2030 5 T H E A B U D H A B I E C O N O M IC V IS IO N 2 0 3 0 Context and Executive Summary Based on the principles laid out in the Government’s Policy Agenda published in August 2007, the Abu Dhabi Economic Vision 2030 is a roadmap for the Emirate’s economic progress. Seeking to ensure the continued success of the • A significant and ongoing contribution to the Emirate’s development, the Government of Abu federation of the UAE Dhabi has set guidelines and priorities for the Having established these pillars, the Government Emirate’s socio-economic progress in its Policy has committed itself to direct public policy to Agenda. Taking these guidelines as its parameters, strengthen and develop them. This involves the Abu Dhabi Economic Vision 2030 has been focusing on four key priority areas: developed by the Government, in consultation with the private sector, as a 22-year strategy to achieve • Economic development these aims, and to ensure that all stakeholders in • Social and human resources development the economy are moving in concert, with a clear view of the long-term goals. • Infrastructure development and environmental sustainability The Abu Dhabi Policy Agenda 2007/2008 defines • Optimisation of Government operations. the priorities for public policy in the Emirate. These priorities have been set to achieve what the Government of Abu Dhabi sees as its primary Economic Development goals: a safe and secure society and a dynamic, Economic diversification is common and open economy. fundamental to the Government’s other stated The Government has identified nine pillars that priority areas and the policy agenda as a whole. will form the architecture of the Emirate’s social, The Government wishes to see the creation of political and economic future: higher-value employment opportunities, especially for Nationals, and maximising participation of • A large empowered private sector women in the workforce. To encourage investment • A sustainable knowledge-based economy and entrepreneurial activity, the Government • An optimal, transparent regulatory environment plans to contribute to enhancing the business environment through further legislative reform and • A continuation of strong and diverse by ensuring that all economic policy is formulated international relationships with reference to rigorous data sources and • The optimisation of the Emirate’s resources statistical information. Enhancing the economy • Premium education, healthcare and and business climate will also help to integrate infrastructure assets Abu Dhabi further into the global economy by attracting foreign as well as local investment, and • Complete international and domestic security by facilitating export of capital through targeted • Maintaining Abu Dhabi’s values, culture and investments with international partners. heritage 6 T H E A B U D H A B I E C O N O M IC V IS IO N 2 0 3 0 Pillars of the Abu Dhabi Policy Agenda Vision A large empowered private sector The creation of a sustainable knowledge based on economy An optional transparent Priority Areas regulatory environment Economic Development A continuation of strong and diverse international relationships “The vision for Social & Human Resources Abu Dhabi consists Development of a secure society Emirate resource optimization and a dynamic Infrastructure Development and open economy” Environment Sustainability Premium education, healthcare and infrastructure assets Government Operations Optimization Complete international and domestic security Miantaining Abu Dhabi’s values, culture and heritage Source: The Emirate of Abu Dhabi Policy A significant and ongoing contribution Agenda 2007-08 to the federation of the UAE Abu Dhabi government’s Policy Agenda is built around Infrastructure Development and nine pillars that are meant to shape the Emirate’s future. Environmental Sustainability Social and Human Resources Development Developing appropriate infrastructure, while According to the Policy Agenda, social and human preserving the environment, forms the third development represents the pre-eminent objective priority area. The Government will ensure the and driving motivation behind all policies and development of a professionally designed and initiatives. Ensuring that high quality education and well-managed urban environment in the Emirate’s health services are available to residents is therefore towns and cities, complete with world-class of the highest priority. When it comes to developing traffic and transport systems. The simultaneous the workforce, the Government aims to ensure the development of the Regions to keep pace with that availability of a stable supply of high quality labour of the Capital is also an important policy priority to staff the economy, and especially to encourage in order to achieve an Emirate-wide distribution full employment among Nationals. At the same of economic activity and associated benefits. time, Abu Dhabi wishes to maintain ethical and safe For its part, the Government will also ensure that management of its labour resources, through the Abu Dhabi’s security is maintained and that its thorough implementation of Federal labour laws towns and cities remain a safe place in which to and the meeting of commitments made through the live and work. In order to ensure that the urban UAE’s signature of international labour arrangements. infrastructure is able to cope with the envisioned 7 T H E A B U D H A B I E C O N O M IC V IS IO N 2 0 3 0 growth without stresses, the Emirate has already the economy up the value chain. Moreover, a developed and published a comprehensive 2030 better educated workforce will be a key enabler to urban structure framework plan for the Capital. The address the relatively low productivity rates found initiative will be expanded to cover all the regions in much of the Emirate’s enterprise base. of the Emirate. Faced with the prospects of a more globalised economy, the Emirate can rely on its established Optimisation of Government Operations network of international relationships and Finally, the Policy Agenda sets out guidelines friendships to respond to the many challenges for optimising the Government’s own role in the of increasing globalisation. Moreover Abu future of the Emirate, by improving the efficiency Dhabi’s geo-political status can help the and accountability of government departments. Emirate to respond to the pace of technological The Government has already embarked on an change and harness the capabilities of research extensive review of its processes and structures. and development for future competitiveness. Many services are being delivered electronically However, in order to unlock the potential of these through e-government initiatives, and departments relationships, Abu Dhabi needs to achieve higher are being streamlined and non-core services global rankings in terms of global competitiveness outsourced to the private sector. These initiatives and ease of doing business. Moreover, the will be continued and enhanced. At the same Emirate’s business environment needs to become time, the Government will review and enhance better equipped to understand and benefit the legislative framework and the law-making from new business models and to participate in processes themselves to ensure maximum the global growth of trade in services and the efficiency. servicisation of many manufactured products. This should be coupled with an effective programme Economic Vision Imperatives to stimulate research and development, and local innovation, and to facilitate the integration with The Abu Dhabi Policy Agenda has a heavy global innovation centres. emphasis on the economy and on ensuring the economic wellbeing of all of Abu Dhabi’s citizens The Abu Dhabi Economic Vision 2030 and residents. This Agenda came in response to a Taskforce number of opportunities and challenges facing Abu Dhabi. This Abu Dhabi Economic Vision 2030 is the result of a concerted effort between a number of public The Emirate’s drive for a more sustainable and sector and joint public-private sector entities. In diversified economy is intended to reduce the particular, three entities have played an important relatively high dependence on oil and the cyclical role in the development of this Vision: swings which accompany it. Moreover, the young National population presents the opportunity, as • The Department of Planning and Economy well as the challenge, to create attractive, high • The Abu Dhabi Council for Economic value-added employment opportunities for the Development (ADCED) emerging generation. The drive for diversification • The General Secretariat of the Executive Council as well as the challenge of a burgeoning population delivers a greater need for Abu Dhabi The Department of Planning and Economy: to upgrade the quality of its education system, The Department is charged with providing for a and to increase the educational attainment rates dynamic, open and successful economy. In what of Nationals and the overall workforce to move is an evolving and new role, the Department is 8 T H E A B U D H A B I E C O N O M IC V IS IO N 2 0 3 0 expected to become more of a policy maker, Economic Vision and the subsequent economic facilitator and monitor. To that end, it is undergoing strategies. a major transformation in order to build the required capabilities. The setup of a world-class Objectives and Framework statistics bureau is one of the key initiatives being The Abu Dhabi Economic Vision 2030 sets out undertaken in order to provide for fact-based to establish the current economic environment decision making and policy formulation. and identify key areas for improvement in order to Abu Dhabi Council for Economic Development achieve the goals laid out in the Policy Agenda. (ADCED): The Government established ADCED as a First, the current state of the economy has joint public-private advisory body to support been ascertained through an analysis of macro- the Department of Planning and Economy in economic data. The Abu Dhabi Economic Vision developing a comprehensive economic strategy 2030 examines which sectors and which types that will fulfil the Emirate’s economic needs and of enterprise are contributing most to economic work towards the realisation of the goals laid out output and growth, and in which regions most in the Government’s Policy Agenda. ADCED is growth is taking place. Various opportunities are uniquely placed to participate in the development identified within these areas in order to bring about of such a strategy. Its Board consists of members the desired economic diversification, sustainability of both the Government and the private sector, and distribution throughout the regions. including representatives from the Department of Second, the Abu Dhabi Economic Vision 2030 Planning and Economy, the Abu Dhabi Chamber of examines the current business environment and Commerce and Industry (ADCCI) and foreign and identifies key strengths that can be enhanced domestic business councils. and areas that might be improved to further This joint public-private structure for economic the economic and competitive potential of the policy advice therefore includes representatives of Emirate against its existing peers and international all the major stakeholders in the economy and, as benchmarks. In particular, the Abu Dhabi Economic a result ADCED plays an important role in creating Vision 2030 looks at business legislation, labour an open channel for collaboration on economic policy, fiscal policy and monetary policy as key matters. ADCED is organised into four Board regulatory and policy levers that can be manipulated committees: Economy and Trade Committee, to improve the overall business environment. Social Development Committee, Construction Finally, the Abu Dhabi Economic Vision 2030 and Infrastructure Committee, and Business takes into account the Emirate’s resources and Environment Committee. the steps that need to be taken to ensure these General Secretariat of the Executive Council: can accommodate future economic growth. Among its many tasks, the General Secretariat Infrastructure, including energy, transport and ICT, is responsible for coordinating the development is a key area that requires continued investment of departmental strategic plans across all to provide for a growing population and increased Government entities and for establishing an economic activity. The development of human effective performance management system. The capital and the workforce is another key area that General Secretariat will play a key role in the is vital to the long-term success of the Emirate’s coming phases to ensure that the Government- economy. Ensuring that financial capital can be wide and departmental strategic plans are safely and confidently employed is also central to congruent with the targets set in the Abu Dhabi developing and expanding the economy.