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The Department of Economic Development (DED) in Abu Dhabi, has released eight key indicators in 2011: the Consumer Confidence in Economic Performance Index, the National Family Conditions Observatory, the Business Cycle Index, the Confidence in Business Climate Index, the Labor Market Demand Trends Index, the industrial Index, the Financial Sector Index and the Foreign Trade and Exports Index.
Most of these development indicators, revealed optimism of individuals in various categories towards the improvement of economic conditions in the Emirate of Abu Dhabi in 2012, despite the regional and global events and economic developments that took place in 2011, and resulted in slowing down the economic recovery, which the world economy began to experience at the end of 2010; after being affected by the American debt crisis, the European sovereign debt dilemma, and the sluggish global financial markets.
The results of the development indicators in the Emirate of Abu Dhabi were constructed by the Studies Directorate, to reflect regional and global conditions, and underline the strength of Abu Dhabi’s economy in facing challenges and global threats, despite fears expressed by international institutions, such as the World Bank and the IMF of a new wave of economic recession. However, these fears lowered the general level of optimism among individuals, institutions and the international economy in general.
The Consumer Confidence in the Economic Performance Index aims at measuring the levels of optimism or pessimism of consumers towards the current economic conditions in the Emirate of Abu Dhabi, and anticipated economic trends in the near future, all of which will affect consumers spending and savings decisions.
The results of the general index of consumer confidence in the economy of the Emirate of Abu Dhabi, revealed that the index remained above the level of neutrality, and took a gradual optimistic path at the beginning of last October and continued forth until the end of the year, reflecting the continuous confidence of consumers and individuals in the performance of the economy. This path indicated that confidence in the performance of economy will continue although during 2012, especially that sub-index of confidence in future economic conditions, during the month of December, registered 140 points, reaching a level higher than the general index.
By the end of the fourth quarter of 2011, optimism increased among individuals and consumers in the Emirate of Abu Dhabi, as the general index of consumers’ confidence in economic performance, started to rise in September 2011 to register 122 points at the end of December 2011. However, the general index registered low levels of optimism during the first months of last year, due to the uncertainty, and lack of clear vision about regional and global economic conditions.
Optimism towards future conditions in the emirate, and confidence in policies, remained at high levels, registering (140) and (114) points respectively during the year 2011. This rise in the level of optimism, was due to a combination of factors; most importantly, the high awareness of individuals and consumers of the great efforts made by the Government of Abu Dhabi, to provide a decent, safe and secured life for all citizens and residents; and the keenness of the Government to take necessary measures to spur the performance of the emirate’s economy in general, and create new job opportunities for citizens in all disciplines, especially after the announcement of the Government of Abu Dhabi in late 2011 of (6000) new jobs for citizens, whose intake for these jobs started at the end of October and the beginning of November 2011.
All this was augmented by the great efforts made by the Government of the Emirate of Abu Dhabi to stabilize food prices, and secure food commodities for citizens at subsidized prices for products such as rice, flour and water; and the government’s strive to develop the agricultural sector, increase agriculture contribution to GDP, support the role of agriculture to achieve food security of local production, stabilize prices and exempt most agricultural imports from customs duties.
The mechanism of receiving consumers’ private or price-related complaints was highly improved. The Abu Dhabi Food Security Center was formed under the responsibility "Abu Dhabi Food Control Authority", to set appropriate policies to ensure food security, and develop policies and recommendations to assess and determine the economic, social and environmental optimal sustainable level of agricultural production and fish produce, of local and foreign origin.
In addition, the Abu Dhabi Food Security Center duties include developing policies and programs to encourage appropriate sustainable and efficient technologies and systems in the fields of agriculture and animal production. The Food Security Center, supports scientific research, and invites cooperation with research organizations within and outside the State in order to enhance food security.
The rise in world food prices, led to sharp hikes in food prices in the Emirate of Abu Dhabi in 2011 compared to 2010. In this regard, the report of the Central Bureau of Statistics issued on December 6, 2011, referred to the rise in the Consumer Price Index by 1.9% on average during the period (January-November 2011) compared to the same period in 2010.
The report indicated that the "Food and non-alcoholic beverages" group, was the group that contributed most to the rise in consumer prices, during the period.
The second highest contribution to the rise in consumer prices during the period (January-November 2011) compared to the same period in 2010 was, came from the "Housing, water, electricity, gas and other fuels," group, which contributed by 34.6% of the overall rise in prices; as its prices increased by 1.8%. Meanwhile, while the consumer price index in November 2011 dropped by 1.7% compared to October 2011.
According to the FAO Food Price Index, the general price index increased in 2011 by 23.6% compared to 2010. This increase reflected the hike in international prices of all goods covered by the index. Prices of grain, oil and sugar, recorded the highest increase by (36.3%) and (31.1%) and (23.4%), respectively, while prices of meat and milk products were less high, reaching (15.6%) and (10.9%), respectively.
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