By the end of 2023, Abu Dhabi’s economy recorded a 4.1% growth over the previous year, propelled mainly by a 10.4% surge in non-oil sectors. This positive momentum carried into 2024, with the economy expanding by 3.3% in the first quarter compared to the same period in 2023. 

This steady growth highlights the success of Abu Dhabi’s strategic initiatives in economic diversification, industrial advancement, and foreign investment attraction. This growth enhances Abu Dhabi’s economic strength and plays a crucial role in the broader economic development of the UAE.

“Our economy continues to deliver consistent, stellar growth, reaffirming its resilience and dynamism to navigate headwinds and global challenges impacting all economies and sectors,” says His Excellency Rashed Abdulkarim Al Blooshi, Undersecretary of the Abu Dhabi Department of Economic Development (ADDED).

KEY PILLARS OF THE STRATEGY 

The Abu Dhabi Department of Economic Development (ADDED) is focused on establishing Abu Dhabi as a prominent global economic center through strategic initiatives centered on sustainability and innovation. 

“The key pillars of ADDED’s strategy involve enhancing living, investing, and working conditions and driving innovation in these areas.”

Sustainable development is central to ADDED’s strategy, which focuses on advanced manufacturing, science and technology, and export and trade to build a diversified and resilient economy.

He says, “We are strengthening Abu Dhabi’s role as a global hub for talent, businesses, and investment opportunities.”

Several initiatives aim to enhance the business environment. “As part of our commitment to establishing Abu Dhabi as the premier destination for business, ADDED has launched various initiatives to streamline administrative processes and refine regulatory frameworks.”

In line with the Abu Dhabi Industrial Strategy (ADIS), ADDED has launched programs to enhance business operations by facilitating access to finance, increasing market openness, leveraging advanced infrastructure, and promoting public-private collaboration. Additionally, digital transformation projects have been implemented to streamline government-business interactions, significantly reducing the time required to start and operate a business in Abu Dhabi.

The Tajer Abu Dhabi license now includes 12 new activities, allowing investors to operate without a physical location for up to three years, streamlining business operations. The Freelancer License has been expanded with 30 new activities, broadening opportunities for UAE nationals and residents. The Freelance Professional License supports specialized services, boosting Abu Dhabi’s economic vitality and innovation-driven growth.

These initiatives aim to attract foreign investment, boost local efficiency, and improve global competitiveness by advancing fields like AI, electronic systems, oil and gas software, data analysis, and computer systems. They also include advancements in 3D imaging and online player support, reinforcing Abu Dhabi’s commitment to technological and economic growth.

SUPPORTING SMES AND BUSINESS-FRIENDLY REGULATION

Abu Dhabi is advancing as a top economic hub, recently named the fastest-growing emerging ecosystem in the Middle East and North Africa (MENA).

“SMEs are a crucial driver of our impressive growth, and ADDED is committed to supporting this sector, which is essential for developing and diversifying the economy,” adds Al Blooshi.

SMEs account for over 90% of businesses in Abu Dhabi and employ more than 46% of the non-oil sector workforce. ADDED supports these SMEs by linking them to international markets through trade fairs and digital platforms and offering technology, financial management, and compliance capacity-building programs. Programs like ‘SME Finance Facilitator’ and ‘SME Champions’ improve access to procurement opportunities and financial services for growth.

Aligned with the Abu Dhabi Industrial Strategy, ADDED’s ‘Smart Manufacturing Incentive Programme (SMIP)’ supports SMEs in transitioning to smart manufacturing and adopting Industry 4.0 technologies. These initiatives and efforts to improve market openness and ease of doing business aim to empower SMEs and foster growth in a dynamic economic environment.

“ADDED is dedicated to creating a flexible, business-friendly regulatory environment that promotes economic growth and sustainability.”

Quarterly “Al Multaqa” meetings offer a crucial platform for dialogue, investment support, and policy development to enhance Abu Dhabi’s business environment. 

“Our forward-looking vision enables us to remain adaptable and make the process of doing business in Abu Dhabi as seamless as possible,” says Al Blooshi.

INNOVATION ECOSYSTEM IN ABU DHABI 

ADDED is shaping Abu Dhabi into a top innovation hub by leveraging advanced technologies and fostering creativity and entrepreneurship. This involves supporting R&D, encouraging public-private partnerships, and funding startups and tech companies. Central to this is the UAE’s Fourth Industrial Revolution (Industry 4.0) Strategy, focusing on technologies like automation, advanced manufacturing, blockchain, AI, and the IoT.

Al Blooshi emphasizes, “This will position Abu Dhabi as a global center for technology and innovation, attracting investments and skilled professionals from around the world.”

 Abu Dhabi Industrial Strategy (ADIS) is a core element of these national initiatives, which identifies key economic clusters and sectors poised to impact the global economy. These sectors address critical challenges like food and water security, utilizing advanced tools, infrastructure, and a skilled workforce.

“This comprehensive approach ensures that Abu Dhabi remains at the forefront of technological progress and continues to attract and nurture top-tier talent and enterprises,” believes Al Blooshi.