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The Industrial Development Bureau (IDB) of Abu Dhabi is pressing ahead with its efforts to promote non-oil industries in Abu Dhabi, IDB Director General Ayman Al Makkawy told the MEED Abu Dhabi Conference.
“The Emirate of Abu Dhabi grew its non-oil industrial manufacturing sector by 9 per cent last year, more than double the average GDP growth in Abu Dhabi and over three times more than global growth indices,” Al Makkawy said.
The need to press ahead with the continued diversification of the economy is one of the principal reasons why Abu Dhabi and the UAE are not expected to slow project spending despite falling oil prices. Indeed to illustrate this, according to data from MEED Projects, the regional online projects tracker, Abu Dhabi awarded a record $50bn worth of projects alone in 2009 despite the global recession and a drop in the average oil from $99 a barrel to $58 a barrel.
Moreover the peak of the regional real estate boom in 2006-07 took place when oil prices averaged $67-$73 a barrel, prices similar to today. And with regional governments having built up considerable foreign currency reserves, they have cash to continue financing projects despite any budgetary shortfalls.
In Abu Dhabi’s case, the value of planned and un-awarded projects is considerable, totalling close to $100bn. The largest sector going forward is construction, followed by oil, gas and power. Total GCC contract awards for 2014 as a whole are expected to surpass $160bn for the very first time, while the UAE is forecast to once again become the largest projects market in the region, according to MEED Projects.
The 9th Abu Dhabi Conference was organised with the aim of providing various stakeholders a comprehensive overview of the high value sectors with growth opportunities, in line with government plans, such as urban planning, energy, industry and infrastructure.
During the opening session of the conference, the UAE’s Emirates Nuclear Energy Corporation (ENEC) Chief Executive Officer Mohamed Al-Hammadi told conference attendees that the Baraka plant is on schedule and budget, with more than 1,000 companies currently involved in the project that is designed to have ultimate capacity of 5,600MW.
Speaking at the event, Al-Hammadi said that construction work on the first unit was 61 per cent completed and that the first reactor was on schedule to meet the commissioning deadline of 2017.
ENEC is planning for one reactor to come online every year from 2017, with the fourth and final reactor scheduled for commissioning in 2020.
Al-Hammadi told the conference that the nuclear scheme would reduce 12 million tonnes of CO2 emissions by 2020.
The ENEC CEO said that the $20bn nuclear project was benefitting the local economy and creating jobs for nationals. He said that over 1,000 local companies were involved in the nuclear programme, and 62 per cent of the 1,300 employees of the nuclear body were local nationals.
ENEC awarded a South Korean consortium led by Korea Electric Power Corporation (KEPCO) a $20bn contract to build four reactors in 2009.
In August 2014, the UK’s Lloyd’s Register Energy has been awarded a contract to provide construction oversight and technical services by the UAE’s Federal Authority for Nuclear Regulation (FANR).
The MEED Abu Dhabi Conference is organised with Official Energy Efficiency Patron Powerwise, an initiative of the Regulation & Supervision Bureau; Official Industry Patron the Industrial Development Bureau; the Official Infrastructure Patron the Abu Dhabi Urban Planning Council: the Clean Energy Partner Masdar and the Sustainable Energy Partner Emirates Nuclear Energy Corporation (ENEC).
Platinum sponsor is ENEC. Conference sponsor is Parsons. Exhibitors are the Indonesian Investment Promotion Centre and the NMDC.
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