Abu Dhabi

Economic Vision 2030

Abu Dhabi’s multidecade economic development and diversification plan impacts almost every sector of the economy, from telecommunications and tourism to banking and business. The transformation envisioned by the plan is already taking shape, with early work ongoing at the Culture District at Saadiyat Island; dramatic enhancements recently completed at the international airport; and the upcoming opening of an iconic office and hotel tower at the city’s world-class exhibition and conference center.

By 2030, Abu Dhabi’s population is expected to more than triple. The emirate’s goal is to evolve from a resource-based economy to a knowledge-based one, and to boost the non-oil share of the economy to more than 60% of GDP, from just over 40% today. This emirate, located between blue seas and red dunes, has an ambitious plan for the future — but a great deal has already been accomplished.

Dynamic and Diversifying:
Abu Dhabi Attracts Tourists, Business and Industry With an Ambitious Vision

Set alongside the brilliant blue waters of the Arabian Gulf, Abu Dhabi is an ambitious and dynamic emirate that is fast evolving across a multitude of industries and sectors. The largest of the seven emirates that make up the UAE, and home to the country’s capital city, Abu Dhabi sits atop 9% of the world’s proven oil reserves and 5% of its gas reserves. This unparalleled resource base is instrumental to achieving the goals laid out by its visionary leadership. Abu Dhabi is a land of diverse geography with towering red sand dunes, dramatic desert mountains, white sand beaches and mangrove wetlands. It strives to mirror this diversity in its economy, guided by a measured strategy called Plan Abu Dhabi 2030. Tourism is a major component of this plan, as is industrial development—based on the emirate’s vast hydrocarbon reserves—and growth in services and other knowledge-economy sectors.

Plan Abu Dhabi 2030 aims to move the economy from a resource base to a knowledge base and boost the non-oil share of the economy to more than 60% of GDP by 2030, from just over 40% today. In addition to tourism, other contributors include supporting industries such as aluminum production, petrochemicals and media (e.g., the state-of -the- art ‘twofour54’ business park); and the renewable-energy and clean-technology sector, nurtured by Masdar City—the world’s first cleantech cluster to be built in one of the world’s most sustainable cities.

These various efforts are generating valuable synergies. For example, the enormous strides that tourism has made—and will continue to make over the next decade—are not only enhancing the tourism sector, but also making the city an increasingly attractive place for businesses to expand, for professionals to live, and for worldwide talent to converge.

Despite the global recession, 2009 was a landmark year for Abu Dhabi: The inaugural Formula 1™ Etihad Airways Abu Dhabi Grand Prix was held on the new Yas Marina Circuit. The city also hosted numerous major sporting events; star-studded film and music festivals; more than 60 art exhibitions; dozens of local, regional and international musical performances; and at least 200 conferences.

As His Excellency Sheikh Sultan Bin Tahnoon Al Nahyan, Chairman of Abu Dhabi Tourism Authority (ADTA), puts it, “While we still have much to achieve, the huge strides we have already made in our tourism offerings—not to mention the broader cultural and business infrastructure—underline exceptional progress for such a youthful entrant onto the world stage.”

Tourism Development & Investment Company (TDIC), the tourism authority’s asset management and development arm, also supports the 2030 vision by developing some of the emirate’s headline attractions, such as Saadiyat Island. This natural island, lying 500 meters offshore Abu Dhabi city, is a fully mixed-use development that will be home to “the world’s largest single concentration of premier cultural institutions,” according to ADTA. Its Cultural District will include the Zayed National Museum, the Guggenheim Abu Dhabi, Louvre Abu Dhabi, a performing arts center and a maritime museum. In all, TDIC is building $30 billion worth of projects.

Clearly, the global recession has not dampened the emirate’s ambitions, with government tourism and infrastructure projects “progressing according to plan,” explains Sheikh Sultan. As an example, he cites bidding that opened in March on the main construction contracts for Louvre Abu Dhabi, which was designed by French architect Jean Nouvel in the shape of an enormous floating dome.

In the tourism sector, Abu Dhabi has been named a “top ten” destination for 2010 by both Lonely Planet and Frommer’s travel guides, while hotel guests have increased by more than 50% to 1.5 million since 2004. While much of that is business-related travel, Sheikh Sultan says the goal is to achieve a 50-50 split between business and leisure tourism, while ensuring that “Abu Dhabi continues to develop at the premium end of the spectrum.

Tourism Development & Investment Company

The Master Developer That Is Helping Shape the Future Tourism of Abu Dhabi

Abu Dhabi is on a mission to become an international destination of distinction. With the creation of the Economic Vision 2030, the emirate has been on a roll—from expanding its tourism and hospitality infrastructure to investing in its deep-rooted heritage and building on diverse cultural aspirations.

Abu Dhabi’s economic strategy is to shift its source of wealth from hydrocarbons to the private sector, promoting investment opportunities in its tourism and leisure assets.

Abu Dhabi aims to solidify its position as a major tourism destination by attracting 2.3 million guests to the UAE’s capital by 2012. With such large-scale ambitions, the Tourism Development & Investment Company (TDIC) was founded in 2006 with the purpose to develop Abu Dhabi’s tourism industry.

As a master developer of tourism, cultural and residential destinations in Abu Dhabi, TDIC currently has more than 55 main projects across the emirate to be completed by 2020, totaling over AED120 billion. These projects are of strategic importance to the 2030 Economic Vision.

TDIC’s project portfolio spans the redevelopment of urban landmark districts; new-build, mixed-use complexes; downtown business and leisure resorts; and desert resorts. Every TDIC project reflects the company’s core values of cultural and environmental preservation as well as socioeconomic promotion.

The company currently has a number of joint-venture agreements with reputable contractors and developers in the UAE, as well as partnerships with some of the world’s leading culture, leisure and hospitality brands.

“TDIC has set a realistic, long-term vision to create investment partnerships that support Abu Dhabi’s evolution into a world-class tourist destination,” says His Excellency Mubarak Al Muhairi, Managing Director of TDIC.

TDIC is creating one of Abu Dhabi’s flagship developments, Saadiyat Island, which epitomizes the emirate’s focus on culture and arts, sports and leisure, and the natural environment. Saadiyat Island will be home to the world’s largest concentration of cultural institutions; two championship golf courses (including one designed by the legendary golfer Gary Player that is now open); and environmentally sensitive resorts and luxurious residential developments, which will eventually house 160,000 residents.

TDIC has launched a number of projects in 2009 and 2010, including the opening of the landmark desert resort, Qasr Al Sarab by Anantara. Officially inaugurated in October 2009, the resort has received tremendous acclaim from regional and international guests searching for a genuine taste of local culture. Set amid the dunes of the Liwa Desert in Rub al Khali and inspired by the indigenous desert culture, this project provides visitors with a holistic experience that truly manifests the UAE’s rich history and heritage.

In the western region of Abu Dhabi, Sir Bani Yas Island continues to flourish as one of the world’s leading conservation tourism destinations and was featured in Condé Nast Traveler’s “Gold List 2010” for the second year running. Construction has already begun on four new lodges and numerous leisure-based projects on Sir Bani Yas.

TDIC also received considerable support from the private sector to deliver joint-venture hotel projects throughout Abu Dhabi city, such as Shangri-La Qaryat Al Beri; Fairmont Bab Al Bahr; Traders Hotel, Qaryat Al Beri; and Park Rotana Complex.

By providing an additional 1,200 rooms in 2009, these developments support Abu Dhabi’s ambition to become a distinctive destination for international tourists and provide a much-needed quantity and variety of accommodations within the capital.

With regard to financial progress, TDIC received two awards at the start of the year from the reputable Islamic Finance News for its inaugural US$1 billion, five-year sukuk: the “Real Estate Deal Of the Year” award and the “UAE Deal Of the Year” award. The sukuk, launched in 2009, complements and supports the US$1 billion bond, which is the first issuance under the US$3 billion Global Medium Term Note (GMTN) program. Because both offerings have had extensive international interest, TDIC has recognized the benefits of entering the international capital markets from both a financial cost-of-funding perspective and as an alternative platform to increase brand awareness.

Etisalat

Physically Connecting Countries to the Rest of the World

Imagine running a company that has acquired millions of new customers each year since its inception 33 years ago. If you are His Excellency Mohammed Hassan Omran, Chairman of Etisalat, you do not need to imagine. To date, the United Arab Emirates-based Etisalat has over 107 million customers spread across its 18 countries and business entities. Statistically speaking, this is an astonishing feat.

Etisalat has positioned itself among the leading telecom providers in the world, operating in emerging markets as it looks to balance mild global economic resurgence with the need to extract value from a growing tapestry of assets. The telco’s Chairman, Mohammed Omran, acknowledges that the years ahead will be challenging for the corporation, but believes that given its track record, experience and determination to innovate, a successful outcome is in the forecast.

“We look to the future with a combination of confidence and excitement, and expect the next few years to produce many challenges,” says Mohammed Omran, recognizing that telcos today are operating in an environment that is significantly altered, with fast-changing customer needs. “Change in the world of telecommunications is a constant factor, with new business models and different technologies converging.”

Etisalat has turned the UAE into the hub of Internet activity in the region by implementing its plans to make Abu Dhabi the first capital in the world to be fully connected with a “Fibre to the Home” network by the end of 2010 and throughout the UAE by 2011. The UAE has also become the home to the most sophisticated network of submarine Internet cabling and serves as the meeting point between Eastern and Western markets.

“Etisalat has consistently raised the benchmark for innovation and quality in telecom services in the region and has been widely acknowledged for excellent performance by many international organizations,”
says Mohammed Omran.

“This history and reputation for innovation, as well as our different ways of physically connecting countries to the rest of the world, are a key advantage for us in entering new markets as well as in competing in our home market.”

Mohammed Omran also affirmed that Etisalat has established corporate social responsibility as a fundamental pillar of its strategy through its contributions to social and economic growth in the communities in which it operates across the region. He also highlighted the company’s partnerships with its international peers in bringing global innovation centers to the Middle East, such as Etisalat-British Telecom Innovation Centre, which is now located at the Khalifa University for Science, Technology and Research in Abu Dhabi.

Mohammed Omran also expressed Etisalat’s commitment to helping integrate all parts of society through technology, including those who have special needs. Etisalat sponsored the activation of a law which supports people with special needs in the UAE and has also launched a discounted bundle of services which provides specialist services such as IBSAR—a software solution that reads text from a screen, allowing blind people to use the Internet.

In many ways it is the company’s drive and determination to be a leading global telecom player
that paves the way for Etisalat to continue to expand internationally.

“Etisalat is also active in its regional subsidiary markets and is participating in various community projects. These include the award-winning ‘Origin’ program in Egypt, which seeks to provide potable water for hundreds of thousands of poor Egyptians. In Sudan, Etisalat subsidiary Canartel is providing support to reduce the impact of malaria, and in Pakistan, scholarships are provided to aspiring students from local communities.”

“Asia and Africa remain our focus areas for expansion,” asserts Mohammed Omran. “These are markets with high populations and low technology penetration. They are ripe for the many new technologies and value-added services that we are introducing to the region.”

The telecom sector is a fascinating industry to watch. And in the Middle East, Etisalat’s meteoric rise continues to show investors and customers that it is a leading global player. With groundbreaking new technologies and mega expansions across the world, Etisalat looks forward to a very bright and profitable future.

Abu Dhabi Commercial Bank

Ambition, Efficiency and Transparency Are Driving This Innovative Institution Forward

Abu Dhabi Commercial Bank’s $1 billion bond issue last fall made headlines, not only because it was one of the first bonds to tap international conventional debt markets since the credit crisis, but also because it was the first-ever global offering by a bank headquartered in the Gulf Cooperation Council States.

It was a milestone for the bank, which had already gained an international reputation for its companywide commitment to best-in -class corporate governance and transparency. “That Abu Dhabi Commercial Bank was able to meet the rigorous transparency and disclosure standards required of an international issue served as a powerful acknowledgment of the caliber of the internal systems and capabilities we have built within our organization,” says Ala’a Eraiqat, ADCB’s Chief Executive Officer.

The bank has pursued a number of initiatives, undeterred by global economic conditions, thanks to its good governance and shared ambition among management, which Eraiqat says “is a way of life here and very powerful.”

Over the last 18 months, the bank launched the ADCB Investment Banking Group, one of the top two players in the local market. The bank serves large local institutions as bookrunner, lead manager and joint-lead manager on a variety of conventional and Islamic bond issues, and as an advisor in other investment banking matters.

The bank also rolled out ADCB Meethaq, its successful Islamic banking business, which is delivering more than 30% of the bank’s overall new retail and consumer banking flow. Already, Shariah-compliant deposits make up 7.5% of the bank’s overall deposits.

Also, in February the bank announced an alliance with Schroders & Co. Bank AG to offer UAE clients private banking and wealth management services out of Switzerland. ADCB’s high-net-worth customers benefit from Schroders’ 200-year history, while Schroders gains access to a market with one of the highest concentrations of wealthy individuals in the world.

In April, the bank announced it will be launching co-branded credit and debit cards with Etihad Airways, Abu Dhabi’s fast-growing national carrier. Other ongoing initiatives include a fully committed, but not yet fully invested, Middle East and North Africa infrastructure fund of $1 billion, which it launched with Australia-based Macquarie and Abu Dhabi’s ZonesCorp.

In addition, the bank has 350,000 active clients, 50% of whom are using “alternative” channels—the call center, SMS, Internet and phone banking—as their primary interaction with the bank. Eraiqat notes that compared to many of its competitors, ADCB serves twice as many customers with half as many physical branches. “Efficiency is the word that describes how we do business,” he says.

In this spirit, the bank supports Abu Dhabi’s diversification and development plans by providing financing to new local economic sectors that are crucial to the emirate’s long-term goals. While ADCB continues to fund oil-and-gas-related projects, it also is funding green-energy entrepreneurs and financing the development of major leisure resorts. “We are seeking to be the first to fill gaps in these new sectors,” Eraiqat explains.

Like most executives working in Abu Dhabi, Eraiqat is optimistic about the emirate’s future. He cites the ever-strong oil and gas industry; the many downstream industries— aluminum smelting and petrochemicals, among others— being built on the emirate’s enormous oil and gas reserves; and notes that the emirate’s economy is more diversified than those of its regional peers.

He emphasizes the Abu Dhabi government’s commitment to infrastructure development, which “has not slowed down and is having a very strong and positive impact on the economy.”

However, Eraiqat explains that stewardship of the local economy is nothing new. For example, he points to one program launched in the 1970s, which provided low-interest loans to Emirati owners of commercial and residential buildings at a time when skyrocketing interest rates and a bursting real estate bubble was punishing local property owners. “Not only did the program provide immediate support to owners, but long term, it helped build the city.”

The program continues today, funding as many as 1,000 units a month; but now it is administered by ADCB, after the bank proposed to the government that all stakeholders would benefit from private-sector management. The entrepreneurial spirit that inspired the bank to propose such a public-private partnership—seen as one of the most important tools for achieving its economic objectives—says a lot about the bank’s future role in helping Abu Dhabi achieve its economic goals, as does Eraiqat’s assessment of the program: “This is one of the most successful public-private partnerships around.”

ADNEC

Abu Dhabi National Exhibitions Company: Creating Destinations—All Under One Sky

As Abu Dhabi has cemented its position at the heart of the Gulf ’s commercial and cultural landscape, international event organizers have increasingly looked to the emirate and its countless opportunities which exist for live events. This gusto has been boosted by the recent development of the award-winning Abu Dhabi National Exhibition Centre (ADNEC), the Gulf’s largest events venue and one of only a handful of venues in the world capable of staging huge indoor, outdoor and marine events simultaneously.

“In 2005 Abu Dhabi staged only 14 major events at the old exhibition facilities; in 2009 we staged 119 events—an 800% growth over a four-year period, which is a remarkable statistic in any industry,” explains Simon Horgan, ADNEC Group CEO.

“In recent years there has been a massive demand for events in Abu Dhabi, but until the development of ADNEC in 2007, this demand went largely under-serviced,” says Horgan.

ADNEC’s innovative design, use of the latest technologies and complete flexibility have helped firmly position Abu Dhabi as a major global conference and exhibition destination. Its 592,000 square feet of interconnected indoor space includes the 86,100-square-foot Abu Dhabi Hall, which is the Middle East’s largest event space with permanent retractable seating for 6,000 people. The marine facility—connected to the hall by a striking pedestrian bridge—offers a deep channel that is able to accommodate displays from military ships and super yachts.

“ADNEC has developed around the needs of the customer,” says Horgan. “We worked with the world’s leading organizers right from the beginning of the project, and the result is one of the most flexible venues in the world.”

ADNEC already hosts some of the region’s largest, most complex and well-known events, including the World Future Energy Summit, the International Defence Exhibition (IDEX), the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), and Cityscape Abu Dhabi. ADNEC’s busy events calendar continues to grow.

“ADNEC is famous for its huge exhibitions, but we also have an active interest in assisting organizers of smaller niche events, helping them grow year by year to become the major events of the future,” says Horgan.

But ADNEC, which owns the center, recognizes that successful events rely on more than just the venue; they require a complete environment to be provided by the host city, from hotels to restaurants, cafés and shops, travellers expect much more than just a world-class venue.

ADNEC’s answer to this is to develop one of the most ambitious exhibition lifestyle projects ever conceived. Capital Centre is a fully integrated development adjacent to the exhibition center. It is a metropolis of 23 commercial and residential towers providing seven hotels, offering a balance of three-, four- and five-star rankings. Additionally, ADNEC has already opened the 408-room Aloft Abu Dhabi Hotel and will soon open Hyatt at Capital Centre, a five-star luxury hotel located within Capital Gate Tower, Abu Dhabi’s gravity-defying iconic leaning tower.

Of course, ADNEC’s ambitions are not limited to Abu Dhabi or even the UAE. In May 2008, the company acquired the 100-acre ExCeL London Exhibition Centre, the U.K. capital’s largest exhibition center. It immediately began a multimilliondollar development program that will culminate in the opening of the London International Convention Centre this summer. ADNEC’s aim is to develop a global network of world-class event venues that will serve the international exhibitions, conferences and live events industries.

The role of ADNEC in the Abu Dhabi Economic Vision 2030 is a major point of honor for the company. As Horgan explains, “ADNEC supports the government’s 2030 vision in a number of ways and is working with the Abu Dhabi Tourism Authority and other government and private-sector players to help drive business tourism to the emirate and energize the events sector.”

ADNEC has grown from 100 employees in 2007, when Phase 1 opened, to 400 employees today. Significantly, more than 30% of ADNEC employees are UAE nationals. Its activities support thousands more jobs across the emirate. ADNEC’s economic impact is currently estimated to be at least $8.44 billion over the next 10 years.

Whether the measure is commercial or cultural, ADNEC is without question contributing a huge amount to the Emirate of Abu Dhabi.

This project was produced by Intermedia, Dubai. Project Director: Vivienne Davidson / Project Manager: Amy Boeker / Cover image: Louvre Abu Dhabi provided by TDIC