Renewable energy traiblazer

Transcription

1

2

3 Monthly Magazine Issued by the Abu Dhabi Chamber of Commerce & Industry Issue No.114 (First published in July1970) Something Different Editor - in - Chief Mohamed Helal Al Muhairi Administration & Editorial: Tel.: Fax.: Advertisement & Marketing: Tel.: Fax.: P.O. Box: 662 info@economytoday.ae Abu Dhbai - UAE Annual Subscription: Abu Dhabi and abroad AED or its equivalent, in addtion to postage cost Vision To be Recognized as the leading voice for the Abu Dhabi business community Mission We are the private sector s representatives working to Advocate policies, connect businesses and expand members opportunities by providing world-class members-related services with an aim to contribute to Abu Dhabi s sustainable economic development Renewable energy traiblazer The UAE s pioneering development drive has been inspired by self-confidence, capabilities, clear-cut vision and objectives, meticulous planning for the future, as well as constant endevours to top positions. Building upon the great milestones of innovations achieved, such an approach is constantly exploring the future and looking forwards to add new records for the firm national achievements in all aspects. The UAE and Abu Dhabi in particular has been in the frontlines to lead the global efforts in renewable energy. One of the largest oil producing countries notwithstanding, the UAE is on the drive to achieve economic diversification and energy safety whilst transcending the local economy into an advanced level of sustainability. Such a prime position the UAE enjoys in the global renewable energy map has been the outcome of long years of pioneering efforts, hard work and ambitious drive in which the UAE moved with clear vision into virgin territory that few countries in the world has gone through. With Abu Dhabi s hosting the seventh World Future Energy Summit under the patronage of His Highness General Sheikh Mohammed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and Deputy Supreme Commander of UAE Armed Forces, as part of Sustainability Week, and being home IRENA, as well as building upon other unique projects and initiatives in renewable energy, namely, Masdar City and Zayed Future Energy Prizes, the UAE plays pivotal role in the global renewable energy map. His Highness Sheikh Moahmmed bin Zayed Al Nahyan stated that the UAE, under the wise leadership of His Highness Sheikh Khalifa bin Zayed Al Nahyan, the UAE s President, pays greater attention to promote the use of clean and renewable energy as being the cornerstone to fuel development and stability worldwide. The pursue and determination of the UAE to adopt renewable energy bears witness to forward-thinking of the UAE s leadership and wisdom which, with all oil potentials available, has ventured early in the renewable energy as being the future source. The leadership therefore invested heavily in this robust sector, promoting capabilities and expertise whilst building the catalyst for this fresh industry in the region, making the UAE, with unique projects and initiatives such as Masdar, the global leader in renewable energy. Mohamed Helal Al Muhairi 3

4 4 Issue No Abu Dhabi Economy gears up to promote sustainability and competitiveness 06 Abu Dhabi leading the world s sustainable energy sector 14 UAE companies enhance their investment capabilities overseas 18

5 5

6 6 Sustainablity Abu Dhabi Economy gears up to promote sustainability and competitiveness Abu Dhabi - Economy Today Abu Dhabi s GDP at current prices rose by 7.7% to mark Dh billion at the end of 2012, compared to Dh billion in The Economic Report of the Emirate of Abu Dhabi 2013 issued by the Studies Directorate of the Department of Economic Development, has interpreted this relative growth through low growth rate achieved by the extractive industry activity in 2012, which amounted to about 6.2%, owing to the limited increases in quantities of oil production, and the limited rise in oil prices in global markets during 2012 compared to Abu Dhabi s oil exports registered a growth rate of 6.9% during Non-oil growth The report emphasised that the continuation of non-oil activities to register high rates of growth in recent years bears witness to the soundness and efficiency of the economic diversification policy followed by the Government, especially in the last three years which witnessed continuous improvement in the performance of this group of activities, after the sharp slowdown experienced in The reported stated that 2012 witnessed the continuation of the leading role of the group of non-oil activities in support of the overall economic performance, which achieved a combined positive growth rate of 9.6% at current prices in In general, the report pointed out that contribution of extractive industries activities to Abu Dhabi s GDP in 2012 dropped to 56.48% compared to 57.3% in Remarkable milestones HE Nasser Ahmed Alsowaidi, Chairman Abu Dhabi Department of Economic Development in introducing the report said, Abu Dhabi s economy continued to achieve distinct quantitative and qualitative developments in various in all areas, thanks to the far-sighted leadership and the sincere efforts to efficiently and sensibly invest oil revenues, taking into consideration the attainment of sustainability and empowerment of community members; as these goals are the focus of the Abu Dhabi Economic Vision 2030.

7 Nasser Al Sowaidi: Focusing on directing investments to non-oil sectors Mohammed Omar Abdullah: Abu Dhabi economy has achieved strides of prosperity and diversification He said that the path of economic development in the Emirate of Abu Dhabi in recent years has been characterized by focusing on directing huge investments towards non-oil activities, to expedite and further the diversification of the economic base and income sources. This approach coincided with government efforts to stimulate and encourage the private sector to participate actively in the development process of the Emirate; and lay down the solid base for an environment, most attractive and supportive to ensure the success of investment projects. Alsowaidi added that this new edition of the Annual Economic Report of the Emirate of Abu Dhabi 2013, comes to depict and mirror the strength of the economy, based on genuine indicators, that Abu Dhabi s economy, beyond any doubt, had returned to its healthy pace, taking advantage of the vivid diversification strategy pursued by the Emirate, which succeeded in reducing the oil sector s dominant contribution to GDP, in favour of non-oil activities, that had experienced strong growth rates in recent years. He pointed out that, Though the report even offers more evidence of the success of the plans of the Government of the emirate, which seek the optimal use of available resources, and enhancing the competitiveness of Abu Dhabi, this success is not seen as an end in itself, but just a prod for spurring the march of Abu Dhabi and its path towards excellence and progress, and the status that commensurate with the vast capabilities, and opportunities offered by the Emirate s economy. Fixed prices Mohammed Omar Abdullah, Undersecretary of the Department of Economic Development, stated that the new edition of the annual economic report, The GDP of Abu Dhabi is AED 912 billion by end of 2012 which highlights the main developments in the economy of Abu Dhabi in 2012 in particular, and during the period ( ) in general, includes information on GDP at constant prices, as GDP variables were used to be calculated at current prices, as well as the figures concerning various commodity and service activities. The Undersecretary added that the report shows that the real GDP of the Emirate of Abu Dhabi has achieved a growth rate of 5.6% in 2012, and that the non-oil activities witnessed a steady growth since 2007, which ranged between 5% and 9% until 2012, adding that this raised the contribution of nonoil economic activities to real GDP from less than 44% in 2007 to 48% in Economic Diversification Mohammed Omar Abdullah said that the significant development in non-oil activities emphasises the enormous efforts exerted by the Emirate of Abu Dhabi in its drive towards the diversification of the economy in recent years, which turned non-oil activities into an important pillar and an essential component of 7

8 8 Sustainablity Fahad Saeed Al Raqbani: building strong, sustainable and diversified economy is a key priority for Abu Dhabi 2030 Vision the structure of gross domestic product. The careful reading of the indicators presented by the report confirms that Abu Dhabi s economy has made great strides in sophistication and diversity in a short period of time, and that it is steadily moving towards greater progress and development under a comprehensive process seeking to transform the Emirate into a diversified knowledge-based economy, capable of achieving sustainable development, as well as regional leadership, and competitiveness at the global level. Healthy growth rate The second chapter of the economic report focused on the developments in the Emirate Abu Dhabi, presenting GDP data at constant prices as it is basically more accurate to measure the performance of the economy of Abu Dhabi. Data revealed shows that GDP grew by 5.6% at the end of 2012 at constant prices of 2007 compared to 9.3% in 2011, rising to more than 678 billion in The report stated that despite the drop in growth rate in 2012 compared to 2011, the rate was still good and it confirmed that Abu Dhabi s economy had recovered and returned to its healthy pace, taking advantage of the robust diversification strategy adopted by the Emirate in recent years, which in turn contributed to reducing the share of oil sector in GDP in favour of the nonoil sectors which experienced strong growth in recent years. Extractive industries Data shows that extractive industries achieved a 3.8% real growth in 2012, which was lower than previous rates realized by the activity during 2010 and In contrast, non-oil activities were able to reinforce the important gains achieved over the past few years, and to turn into a strong pillar of economic performance in the Emirate. Non-oil economic activities gained real growth of 7.7 % in 2012 compared to 6.7% and 6.1% in 2011 and 2010 respectively. This was reflected positively on the contribution of non-oil activities to the real GDP of the Emirate, which rose to 48% in 2012 compared to 44% in Real estate activities Non-oil economic activities had a clear role in supporting the positive performance of the economy of the Emirate of Abu Dhabi in Careful follow-up of the performance of non-oil activities revealed that specific activities had led to the growth in non-oil GDP, especially real estate activities that achieved a growth rate of around 16.7% in 2012 as a direct result of the significant recovery of sales activities in the real estate sector in the Emirate. Likewise, the efforts and steps of the Government taken in cooperation with the private sector to support and encourage the manufacturing activity spurred this vital activity to continue along the same path of development it achieved during the last two years. The sector accomplished real growth rate of 9.7% registering a new record of about Dh 41.5 billion. This development in the performance of the manufacturing activity was accompanied by a marked shift in the performance of non-oil commodity exports, which achieved a growth rate of approximately 34.3% in 2012 compared to a drop by 1.1% in Wholesale and retail trade The report shed light on the boom

9 Mubarak Al Muhairi: Tourism sector experienced prosperity in last five years achieved by the wholesale and retail trade activity within the non-oil group of activities, after a series of oscillations and decline in performance over the past few years, as this activity was able to achieve a quantum leap in 2012 and to register real growth rate at 8.2% compared to a drop of 2.1% in Likewise, a number of economic activities in the group of service activity such as accommodation and food service, finance and insurance, professional, scientific and technical activities all registered positive growth rates of (5.2% to 5.5% and 15.1%) respectively in 2012, compared to lower of (36.6% and 38.9% and 20%) respectively in 2011 Education as top priority Dr. Mugheer Khamis Al Khaili, the Director General of Abu Dhabi Education Council (ADEC) in an article attached to the report said that the government of Abu Dhabi exerts all efforts to build a culturally and economically vibrant economy whist greatly emphasizing on the education sector as an investment in the future of the people of the Emirate and an important element in social Mugheer Khamis Al Khaili: Education plays pivotal role as future investment of the Emirate infrastructure for attracting talents and competencies. The Government had developed and implemented an integrated strategy to upgrade the educational sector, at various public and private technical and higher education levels. He highlighted that ADEC focuses mainly on making a paradigm shift in the level of school education in the Emirate of Abu Dhabi by implementing a number of initiatives and ambitious projects aimed at achieving a qualitative leap in the education system based on four strategic priorities: preparing distinct well educated students who compare to their international peers, providing quality education for all students without discrimination, introducing high level educational programs in private schools and preserving culture and national heritage. Public education sector Al Khaili said that ADEC has introduced a new comprehensive and integrated school model for public education to achieve qualitative change in the educational objectives outcomes by focusing on the skills of the 21st century and developing students critical thinking and analytical skills within the entire development of students cultural, physical and health competencies. ADEC s Director General added that the implementation of this vision requires building a comprehensive educational system by setting up a healthy and sophisticated environment, developing appropriate curricula and effective systems to follow up the students progress, upgrading teachers and educational leaders and providing the information infrastructure needed to support decision-making. He emphasized that the Council s strategy focuses on the effective investment in the early stages of education as it counts on the long run positive results. The new school model is based on bilingual education or students Arabic and English, and to encourage science and math through the use of means and methods of teaching modern and diverse and attractive for the student and teacher alike as the model is based on outsourcing learning and a variety of attractive and modern methods of evaluating students. Al Khaili emphasized that the Council aspires to provide the best private education, and considers the private sector a key partner, in the educational system of the Emirate, as it serves more than 60% of the total number of students in the Emirate of Abu Dhabi. According to him, the Council s priorities include raising the quality of private education, securing the appropriate absorptive capacity necessary to keep pace with growing demand for education and promotion of national identity. Dr. Al Khaili said that the Council works with private schools to improve their performance, and aims at increasing the capacity of private schools in the next ten years, to accommodate nearly 100,000 new students (an increase of 5% per annum). With regard to higher education, Al Khailil said: The Strategic Plan of Abu Dhabi Education Council for the higher education sector seeks to improve the quality system in Abu Dhabi to match best international standards, lay the foundations for a society based on innovation and knowledge and establish an integrated system for scientific research. He noted that the strategic plan came to realize the objectives of the 9

10 10 Sustainablity government to place education at the top of their priorities in order to achieve the Abu Dhabi 2030 Vision. Dr Al Khaili explained that ADEC s Plan highlights four key priorities of higher education; raising the quality of Abu Dhabi s higher education system to match internationally recognized levels, aligning higher education with Abu Dhabi s social, cultural, and economic needs, building and maintaining a research eco-system to drive an innovation-based economy and providing all qualified students with affordable access to higher education. Falah Al Ahbabi: Abu Dhabi has witnessed a great transformation in economic development and economic diversification Economic progress Fahad Saeed Al Raqbani, Director General of Abu Dhabi Council for Economic Development (ADCED), commented on the results economic report of the Emirate of Abu Dhabi, saying that building a diversified economy with strong growth and achieving regional and social sustainable economic development comprise the two primary objectives of the Emirate of the Abu Dhabi Economic Vision He added that to accomplish these two objectives the contribution of the nonoil sector must be raised from its current level of 50% of GDP to two-thirds by The realization of this goal requires that non-oil sectors should grow annually at rates that exceed the growth rates of the oil and gas sector. Al Raqbani stressed the importance of a thriving and constantly expanding private sector to lead economic growth in the Emirate of Abu by taking over Dhabi the role played by the public sector over the past decades an owner and operator of the major economic activities and an employer of the largest portion of the labour force. That was accomplished through the establishment of modern, sophisticated world-class infrastructure, and the laying down the foundation of the suitable ground for the emergence of new sectors and economic activities, including direct government investment spent on setting these sectors and activities. This was meant to lay the solid foundation of sectors and facilitate their growth and expansion, which prompted focusing on the development of an encouraging and attractive business environment for private investments, enacting appropriate laws and legislation to support the ease of doing business, whilst opening the door for the private sector to enter into the activities of health and education, he added. He stressed that the government of Abu Dhabi has baptized to involve the private sector and directly in the preparation and formulation of economic policy through the care and adoption of the interests of the sector and the views and concerns and suggestions of the representatives of the private sector into account in each plan or strategy emerges from each sector economic sectors in order to overcome the obstacles that hinder the growth and expansion of the private sector, and give more space in front of him to enter into new activities. Role of private sector The private sector has become a fixture in the new important economic sectors including industry, tourism, finance and real estate, as the share of the private sector in Abu Dhabi s economy jumped by 6.5% in 2012 (from Dh 218 billion in 2011 to Dh 232 billion), to constitute 33% of Abu Dhabi s GDP, he said. Al Raqbani said, Although that figure still represents a small share in the economy, it can been seen as relatively large in an economy mostly nurtured and sponsored over the past decades by the public sector which until recently was dominating over the economic activity. That reflects the desire and ability of the private sector to exploit favourable conditions for the establishment and expansion of new business activities. Director General of ADCED emphasized that in the light of the government financial support for the implementation of the package of development projects announced at the beginning of this year which amounted to US$ 90 billion over the next five years ( ), the private sector in Abu Dhabi, including foreign investors will have great and unprecedented opportunities for growth and prosperity in the coming period. Urban planning Falah Mohammed Al Ahbabi, the General Manager of Abu Dhabi Urban Planning Council said that Abu Dhabi is now one the most prominent cities in the region as it witnessed tremendous development in the process of economic,

11 market in the field of planning project in new and existing urban regions. the Pearl Rating System aimed at regulating the practices of sustainable development. This system was applied to villas, buildings and communities; and the real estate market was directed to be in line with the requirements of the policy of the new development system. n September 2013, three years after the launching of this programme, the total land area of villas and buildings that met the requirements and criteria of the pearl rating system exceeded 10 million square meters. UPC revealed that more than 400 projects in the Emirate of Abu Dhabi were rated by the pearl rating system of Estidama. Falah Al Ahbabi said that the year 2012 also witnessed the launching of Comprehensive Sustainable Communities, a new initiative by Estidama, which was considered as a key element in the overall orientation of UPC towards sustainable urban development whilst playing pivotal role in achieving the objectives of Abu Dhabi Urban Planning Vision This initiative is an effective tool to get a balanced method to achieve sustainable planning and provide benefits and services for residents and visitors, while preserving the natural environment of the Emirate of Abu Dhabi. Non-oil sectors account for 48% of Abu Dhabi s GDP with AED 438 billion social and cultural development during the past decades. In view of the restless efforts exerted to achieve economic diversification and build and integrated capital with modern infrastructure which aim to enable citizens and residents enjoy a sophisticated lifestyle, latest services and best housing, education and healthcare. According to Al Ahbabi, the Urban Planning Council conducts analytical studies and research to develop macroeconomic and demographic models, and real estate supply and demand models for the Emirate as well as the setting rules and regulations to govern work progress in development projects with aim to setting and implementing urban development plans based on best practices to meet the needs of the real estate Estidama Al Ahbabi pointed out that Abu Dhabi Urban Planning Council performs its functions based on its vision for setting integrated, sustainable urban communities across the Emirate to meet the needs of present and future populations, and the flexibility to cope with the requirements of future generations while ensuring quality and high living standards that reflect the values and culture of the Emirate of Abu Dhabi. Falah Al Ahbabi said that UPC has also created the Estidama programme in 2008, the first of its kind in the Middle East, based on the four pillars of sustainability: cultural vibrancy, economic prosperity, environmental responsibility and social justice with the aim of promoting the concept of coexistence with Abu Dhabi culture and environment whilst maintaining and caring for the way and style of life in the Emirate of Abu Dhabi. He added: Estidama has launched many initiatives that meet UPC objectives, where Estidama in 2010 unveiled Tourism boom Mr. Mubarak Al Muhairi, the Director General of Abu Dhabi Tourism and Culture Authority said that the tourism sector in the emirate has witnessed a tremendous boom in the last five years. The number of one night stay went up as a result of the increase of tourism attractions and activities being presented to Abu Dhabi visitors the year round. In 2012, Abu Dhabi hotels registered the best figures ever in terms of revenue, number of guests, hotels nights of stay. The number of guests increased by 13% to reach 2.38 million, while the hotel stay also hiked by 13% to register 6.99 million nights. Revenue and profits amounted to AED 4.6 billion, a 6% growth rate compared to the previous year. The tourism sector s direct contribution to non-oil GDP amounted to AED 10.4 billion, while its indirect contribution to non-oil GDP was estimated at AED 20.9 billion, marking 2.6% and 5.3% respectively. He explained that growth rates registered in all major markets were high. 11

12 12 Sustainablity The strongest growth of 33% was captured by the African market, followed by the GCC countries with 25% and the Middle East and Asian markets with growth rates of 20% each. Al Muhairi said that during the same period, Abu Dhabi Tourism and Culture Authority (ADTCA) succeeded in transforming the Emirate from a tourist destination with less than 10,192 hotel rooms, limited air travel and few tourist attractions, into a venue globally known for sustainability and renowned for its commitment to the preserve heritage and culture. Today, Abu Dhabi has become the center for takeoff to multiple world destinations thanks to the rapid growth of Etihad Airways and Abu Dhabi Airports Company (ADAC), which were able to attract a large number of air carriers. He added that at the end of 2012, the number of hotel facilities went up to 631 hotels and hotel apartments, spreading along beaches and city resorts, in addition to points of relaxation and comfort in oases, islands and deserts. The number of hotel rooms went up to 21,906 rooms, and the tourist destinations and specialized tours also increased. The total number of visitors amounted to 3.39 million visitors. Al Muhairi stated that most of the hotels in Abu Dhabi fall within the three, four or five stars classification, while most new hotels planned to be open in the next few years will be four and fivestar hotels. Abu Dhabi will continue to target visitors consistent with its nature, culture, products and commercial and recreational expertise. According to him, future increases in the number of top rated luxury four and five-star hotels will also support the position of Abu Dhabi as a tourist destination, which will offer competitive hotel prices for visitors who come to relax or work. This would encourage growth in the MICE market. Abu Dhabi today enjoys excellent infrastructure and innovative events organizing facilities, on which it counts to attract large number of visitors to the Emirate. Abu Dhabi 2030 Vision He said that Abu Dhabi 2030 Vision has set a clear target which to receive 7.9 million visitors, and raise hotel occupancy to more than 80,000 hotel rooms in the next 18 years. He emphasized that the Tourism and Culture Authority is more focused on achieving these goals as well as increasing the contribution of tourism to the national economy, promoting cultural heritage and providing significant job opportunities for young people. Fixed capital formation As part of efforts to strengthen the economic activities in the Emirate and increase the value added of the various goods and services, the gross fixed capital formation in Abu Dhabi went up by 5.3% in 2012 to stand at AED billion compared to a growth rate of 14.8% in On the other hand, the period ( ) witnessed a clear shift in the structure of the distribution of fixed investments among goods and services. The commodity activities group acquired the largest share of fixed investment at the beginning of the period and constituted (50.2%, 56.3%, 52%, 56%) During 2007, 2008, 2009, 2010, respectively, while the past two years had witnessed a clear increase in the share of service activities in fixed investment, which reached (56.5% and 57.2 %) in 2011 and 2012, respectively. This increase could be interpreted in view of the Government s efforts to spur the shift to a knowledge-based economy, which is closely linked with the laying more emphasis on service activities. Transformational industries grew by 9.7% with AED 41.5 billion 1.57 employed In view of the recovery and boom experienced by the Emirate of Abu Dhabi, many economic activities continued to attract and absorb more citizens and expats in labour force in the Emirate. The number of employed persons was projected to increase from 1.4 million people in 2011 to 1.6 million people in 2012, up by approximately 12%. At the same time, the total size of the work force in the Emirate went up from 1.4 million in 2011 to 1.6 million people in 2012, registering approximately a 13% increase, which raised the percentage of the labour force to 70% of the total population of the Emirate in 2012 compared to 66.8% in Estimates indicate a slight increase in unemployment rate to reach 3.2% in 2012, compared to 2.8% in Stable economy The Emirate s economy maintained relative stability in the prices of most goods and services over the past few years, as the general consumer prices index rose from points in 2011 to122.9 points in The average annual inflation rate in the Emirate dropped to 1.1% by 2012 compared to 1.9% in 2011 and 3.1 % at the end of On the other side, remarkable changes took place last year in the movement of certain groups of goods and services, which constituted the local consumer basket. The group of hotels and restaurants replaced the food and beverage group, which scored the highest rate of price change in 2011, as the former group rose by 7.5% to register the highest percentage change in goods and services to reach 16.4% in 2012.

13 Non-oil foreign trade Preliminary estimates of the National Bureau of Statistics on the volume of non-oil foreign trade of the UAE indicated that Country s total trade with the world rose by 15% by the end of 2012, owing to the increase in non-oil exports by 48% to AED billion, and that re-exports increased by 0.04% to AED billion. Imports rose by 13.9% to AED billion during the same year. Non-oil foreign trade statistics during the first nine months of 2012 showed that Asian non-arab countries ranked first in terms of trade value, acquiring 46% of the Country s total trade with the outside world during the year. The European group came in second place on the list of the key trade partners of the Country by 23%, the American group of countries assumed the third place with 9%, while the GCC group took the fourth place with 8%. Extractive industrial activities register 3.8% of growth rate GDP per capita The average GDP per capita at current prices for the year 2012 registered to AED thousand registering a decline of 0.3% over the year, while the average GDP per capita at constant 2007 prices amounted to AEd thousand in 2012, down by 2.2% compared to The report said that the slight decrease in average GDP per capita could be interpreted in view of the relative slowdown of GDP in 2012, as well as the significant increase in the population of the Emirate during the same year. Abu Dhabi s population increased from 2.2 million in 2011 to 2.3 million in 2012, registering a growth rate of 8%, which exceeded the growth rate of GDP at current and constant prices, which stood at 7.7% and 5.6% respectively during the same year. However; the average GDP per capita in the Emirate of Abu Dhabi still ranks among the highest in the world. Population growth Data show that the total population of the Emirate of Abu Dhabi increased from 2.2 million in 2011 to 2.3 million in 2012 with a growth rate of about 8%. As for the gender distribution of the population of the Emirate, the non-balance between the proportion of males and females continues to prevail in favour of males, who constituted more than 71% of the Emirate s total population in the same year. The last three years saw a gradual decline in the proportion of females in the total population of the Emirate from 29.9% in 2010 to 29.5% in 2011 before dropping to 28.8% in On the other hand, the structure of the population of Abu Dhabi as per nationality, revealed that UAE nationals constituted 20.4% of the total population of the Emirate in 2012, compared to 21% in The structure of the population indicated that there was a relative balance between UAE national male and female population as males comprised about 51.7 % of the total population of UAE citizens in 2012, which was largely in line with those proportions of 2011 when of males accounted for 51% of the total population. Likewise, the distribution of population by age showed that the largest proportion of UAE nationals (59%), concentrated in the age group years, followed by the age group 0-14 years. On the other hand, non-citizens captured 97.6% of the Emirate s total population in 2012, with the continuing imbalance between males and females in this category, where males dominated by acquiring 76.2% of the total population of non-citizens, while females accounted for about 23.8%, owing to the high number of expats who work in the Emirate while their families live within their countries of origin. For the same reason, there was a clear contrast between citizens and non-citizens with regard to the proportions of the age group (14 years and under) and the age group (65 years and over) to total population on both sides. The segment of the age group (14 years and under) comprised 38.5% of the total population, while the segment of the same group in total non-citizens population decreased to 11.5%. The proportion of the group aged 65 years and over comprised 2.2% of total citizen population, while it dropped to 0.6% of total non-citizens population. Generally, the bulk of the population concentrates on non-citizens, while the majority of citizen within the age group (15-64) represents approximately 88%. 13

14 14 Energy Abu Dhabi leading the world s sustainable energy sector Abu Dhabi plays pivotal role in renewable energy, promoting the UAE s role Abu Dhabi - Economy Today Abu Dhabi continues to lead the world s sustainable energy, promoting the Country s pivotal role in this is important sector as well as in atmosphere change combat initiatives internationally. With Abu Dhabi s hosting IRENA and building Masdar City that promotes future sustainable energy as well as staging many events and initiatives such as Sustainability Week, World Future Energy Summit and Zayed Future Energy Prizes, the UAE takes a leading role in launching sustainable energy initiatives and actions. Masder takes a further role in clean and sustainable energy-centric studies and research.

15 IRENA has since it was hosted in Abu Dhbai developed various studies and embarked on new initiatives since it was hosted in Abu Dhabi, marking it a flagship for renewable energy that takes a greater role in motivating clean energy and leveraging the adaptation of renewable energy projects worldwide. The whole world today looks confidently and optimistically to this Agency for coming up with solutions to address climate change issues. The support gained from the UAE empowers IRE- NA to transform into a dynamic entity that ensures energy security and that such energy is provided to all, a drive which is clearly evident in the Agency s various research and studies aimed to lower the cost of renewable energy investment projects. The presence of IRENA in Abu Dhabi has been instrumental in building local expertise whist creating job opportunities through ongoing training with other government institutions and universities as well as meetings of the executive council of the Agency on which countries discuss IRENA s work programmes, policies and strategies aimed to increase the adaptation of renewable energy sources globally. Inspired vision Mr. Adnan Al Amin, the Director General of IRENA, states that the UAE, being the catalyst for renewable energy initiatives, has inspired the GCC to adopt plans for renewable energy. The UAE supports the global drive to advocated renewable energy and ensure more use of it. When you use your resources for the pubic interest globally, you then become a true world leader and pioneer. This is the vision of the UAE inspired by Late Sheikh Zayed bin Sultan Al Nahyan, the Founding Father, who was a truly leader and generous person, transforming the life standards of many people without asking for anything in return, he said. Such efforts have been welcome and well reflected as many countries voted for the UAE to host IRENA as a gesture in return to Sheikh Zayed s 15

16 16 Energy the international scope of the Agency spanned over 168 states globally, supporting those countries in transforming into renewable energy in the future. IRENA has been instrumental in promoting policies, facilitating financing, providing data relating to renewable energy as well as consultancy, scientific support and research studies for both industrial nations and developing countries on renewable energy potentials and best practices to make use of this invaluable source for development. Renewable energy is one of the three pillars of Sustainable Energy for All Initiative which aims to double the global share of renewable energy by 2030 as well as to avail this energy all communities worldwide and with better proficiency. More than 1200 delegates from 168 countries and 30 organisations as well as representatives from the public and private sector gathered to together in Abu Dhabi in the Agency s annual meeting. During the meeting, IRENA unveiled its report, Remap with analytical studies and research findings aimed to double the use of renewable energy in the world energy sector by More than 50 states, including the UAE, vowed to provide data and technical supports to the resource assessment project in cooperation with a number of laboratories in Germany, the US, and Masdar Institute via safe information exchange system. great humanitarian deeds. Renewable energy is the engine for the drive towards more clean use of resource and greener economy. Abu Dhabi therefore became a beacon for clean and renewable energy adaptation with leading experts, leaders and professionals of the sector gather in Abu Dhabi to discuss latest trends, projects, and initiatives in renewable energy. He stresses that the availability of clean, safe and cost-efficient renewable energy is one of the key concerns, stating the world s acknowledgement of such green energy yielded to the establishment of IRENA, the sole international government orgnanisation mandated to promote the use of renewable energy. IRENA progress IRENA was set up on 26th January 2009 at the preliminary conference held in Bonn, Germany where 75 countries signed on the general framework of the Agency. Since 2011, Energy Challenges Energy faces multiple challenges such as population growth which will jump from 6.9 billion in 2010 to 8.3 by 2030, thereby negatively affecting the national economies with further demand on energy and resource. Middle class will grow to reach 2-3 billion people, the majority are dwelling cities in the third world. The wealth increase leads to more consumption, imposing further pressures on existing resources: water, energy, transportation and food. Ban Ki-Mon, the UN Secretary General, lauded the success gained by IRENA, offering all kinds of support to make it a global hub for renewable energy. He called upon IRENA

17 world so far, as it a heralds a new era in the Middle East to transform into green and sustainable economy. IRENA undertook several projects in Africa and Europe and cooperates with Madar on knowledge sharing and joint implementation of project as well as conducting studies and analytical research to ensure date relating to solar energy and wind energy are accurate and based on scientific facts. to study influences of climate change by inviting world leaders to a climate summit next September to explore potentials of low-carbon economy. The Summit will be held at the UN s quarters in New York this year, and will see the attendance of representatives of companies, financial institutions, civil community associations, semi-government organization, local officials and media. Abu Dhabi will be the suitable place for the summit preparations in May. Renewable energy is one of key solutions to address current and future global challenges facing economies, namely the increase of pollution and carbon footprint in some cities like Beijing and Shanghai. Besides, renewable energy is one of the prominent solutions for many countries Latin American and Europe as it provides them with a flexible source for energy. Shams1 The UAE s Shams1 project, undertaken by Masdar, is one of the largest focused solar energy projects in the Multi-billion investments IRENA Director General states that awareness of available local potentials has become greater and there are countries in the process of assessing their energy resources. We have provided our support for the assessment process, highlighting the potentials and capabilities of each and several countries have come up with innovations and plans to exploit renewable energy. Mr. Adnan Amin gave examples of some of assessments undertaken by the Agency in African states such as Niger, Mangolia and Gambia. The Caribbean is one of the earliest supporters to IRENA. We, in return, shared with them all expertise, however these islands lack energy sources, big markets and insufficient investments as energy consumes 20% of their GDP. IRENA launched a renewable energy grid to transform life there. 17

18 18 Companies UAE companies enhance their investment capabilities overseas Abu Dhabi - Economy Today The UAE companies have proved their capability to invest overseas and compete with other international companies thanks to their accumulative experience build over the years. According to the United Nations Conference on Trade and Development (UNCTAD), the accumulative and direct investments by the UAE companies overseas in recent years are estimated by AED 350 billion made into various sectors, mainly: technology, telecommunications, traditional and renewable energy, ports, real estate, infrastructure, aviation, tourism and hospitality, entertainment, banking and stocks as well other business. International reports highlight that the UAE tops the MENA in direct foreign investments overseas as the UAE s foreign investment projects jumped from 174 in 2011 to 220 projects in 2012 according to His Excellency Sultan bin Saeed Al Mansouri, the Minister of Economy. The data operations at Financial Times Group forecasted in its recent report for the year 2013 that the UAE s foreign investments overseas accounts for 34% of the region s total investments, making the UAE participating with one third of Middle East region worldwide.

19 Supporting development drive UAE companies are cornerstones for the success and achievement derive experienced by the national economy, which has gained worldwide recognition. The first Highflyers Forum held in Dubai highlighted the successes of more than 130 UAE-based companies that have operations and investment abroad in addition to discuss further investment opportunities available across the world. Top executives of successful companies shared their experiences and challenges they faced in exploring new markets while diplomats from select countries highlighted investment opportunities available in their respective countries. The one-day forum, hosted by the Ministry of Economy, was opened by Sultan bin Saeed Al Mansouri, UAE Minister of Economy. AED 350 billions are invested by UAE companies overseas International reputation His Excellency the Minster of Economy stressed that UAE s investments abroad has gained the country world reputation as they focus on key economic sectors that help create employment opportunities in leading countries such as the US, the UK as well as in other European countries and developing states, thereby boosting development levels there. Al Mansouri highlighted that the UAE s remarkable milestones in business and investments are attributed to the wise vision of the Country under the leadership of His Highness Sheikh Khalifa bin Zayed Al Nahyan, the UAE s President, which calls upon diversification of investments both home and abroad as well as the directives of His Highness Sheikh Mohammed bin Rahsid Al Maktoum, the UAE Vice President, Prime Minister and Ruler of Dubai to all ministries and directorates to support the UAE s investments overseas to be a catalyst for promoting the Country s innovation and its reputation worldwide. Al Mansouri said that the success of UAE s companies has placed some of our brands amongst the tops in the world. Such milestones were not simple nor without challenges and difficulties. We have come across many challenges indeed but the joint efforts of the Government and the UAE s successful diplomacy to boost the national companies competitiveness and open new markets. The pivotal role played by the 19

20 20 Companies Ministry of Economy in cooperation with the Ministry of Foreign Affairs and Ministry of Finance and other trade and business directorates and chambers has yielded to overcome such tough challenges. Boosting UAE s investment and trade Al Mansouri highlighted that the Ministry of Economy inked many bilateral and multilateral agreements with countries worldwide, out of which there are 60 bilateral agreements for economic and trade exchanges. He also stressed the Ministry organises various road shows, overseas participations in exhibitions and conferences in addition to engaging in targeted promotional campaigns for the national companies products. One of such event is the Ministry of Economic annual investment forum which aims to enable investors from the UAE and the region to explore investment opportunities in developing countries. The Minister explained that the adoptation of the UAE s diplomacy a strategy to promote the investment and trade activities of the Country s overseas whilst protecting the UAE s interests is a decisive factor for the government that helped national companies tap into new markets such as South America, the Pacific and Middle Asia. The wise policies of our Leadership has been greatly reflected on the life of locals and residents, making the UAE companies have achieved remarkable milestones and are well welcomed worldwide UAE one of the happiest countries in the region and well-positioned to share this joy with other communities in the region and worldwide. The UAE companies therefore play a pivotal role in ensuring sustainable development for the least haves not countries whilst addressing the growing needs of the peoples in the region and the world, His Excellency concluded. Drydocks World and Maritime World chairman Khamis Juma Buamim, in his keynote address, talked about mastery in going international. He said: We have strong and sustainable economy. We also have incredible credibility and without any doubt competence. That s the reason people are interested to do business with UAE companies, he added. He also mentioned Drydocks World s achievements during the past couple of years. During panel discussions, speakers at the forum discussed the achievements of their companies and also shared challenges. They also talked about the necessary things companies look for while entering a new country. Fueling innovation The main session overviewed innovation as a supporter for the economies of Middle East, North Africa, and South Asia that experience lots of changes. During the session, Mr. Rashid Al Jarwan, the CEO of Dana Gas, focused on the potentials of UAE companies to address challenges and motives behind investing. Investing in oil and gas is very supportive for prosperity and stability and projected for the long-term as its key product can not be abandoned. Our investment in the electricity sector in the North of Iraq has been instrumental in making huge transformations. Before that, people used to have electricity for two hours per day, but following the production of gas that was used to generate power, the 4 million people there had not been living in the blackout any more. Al Jarwan also spoke about the company s operations in Egypt which has seen $2 billion of investments there. There are huge potentials for better investment opportunities in oil and gas in Egypt once political stability is in place. I would like to laud the efforts of the Egyptian government to provide facilities to all investors to overcome all difficulties they might face.

21 Airlines Mr. Adel Ali, the CEO of Air Arabia, stressed on the role played by UAE airlines in promoting development for the destinations they fly to or have headquarters there, giving an example of the company s operations to Alexandria, Egypt, which has flourished since the company had it as its headquarter four years ago. This resulted in the excess of the airport capacity, leading the Airline to move operations to Borj El Arab Airport to accommodate growth. The CEO also presented the company s operations in Morocco, which has ignited flights towards many destinations whilst helping create direct and indirection jobs. Air Arabia adds value for its target markets as such flights generate more business for hospitality and tourism sectors, bringing about better economic benefits for these markets. The Highflyers Forum brought together prominent CEOs of UAE companies operating abroad and highlighted their successes in foreign investments, the challenges they face, and their strategies for future overseas expansion in international markets. In addition to the speeches and panels, the Forum featured the video and launch ceremony of the Highflyers Initiative by the Minister of Economy. UAE companies have tapped into new markets in South America, the Pacific and Middle Asia Platform to promote UAE companies milestones The forum is first of its kind in the UAE that promotes the UAE companies achievements over the years overseas. The event gathered together leading CEOs, chairmen, and executive of prominent UAE s companies with investments and operations overseas as well as a large number of ambassadors and diplomats to the UAE and representatives of investments from select countries form the world. The event also saw the participation of directors of economic departments, ministries and local and federal bodies involved in business and investment and chairmen of chambers of commerce and business council operating in the Country. Important topics The Forum discussed some of the key important aspects relating to the achievements and challenges of UAE companies investing overseas, which have been able to share such innovation whilst raising the profile of the Country internationally despite the fierce competition. It highlighted the positive impacts and benefits the UAE companies created to these markets, namely: job opportunities, knowledge sharing and driving of various investment sectors. Successful investment strategies Majid Jafar, chief executive officer of Crescent Petroleum and vice-chairman of the Crescent Group, gave the keynote address, entitled Charting growth and prosperity: winning strategies to export UAE s mastery in a morphing global economy, in which he how described how the major successes of UAE companies in foreign investment can be attributed to the open policy adopted by the UAE to the world, and the strong government support given for all UAE companies from the highest leadership of the UAE and all the relevant government ministries including the Foreign Ministry and the Ministry of Economy. He also described how many UAE companies have already become regional and global leaders in their sectors, following key strategies such as excellence in quality standards, understanding and adapting well to the local environment, and high levels of corporate governance. Commitment to quality production 21