Department of Economic Development releases Economic Report of the Emirate of Abu Dhabi 2013

Abu Dhabi: Abu Dhabi's GDP at current prices rose by 7.7% to mark Dh 911.6 billion at the end of 2012, compared to Dh 846.7 billion in 2011, albeit relatively better economic performance during 2011 as GDP achieved a nominal growth rate of 32%. 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%, compared to 52.8% in 2011, due to the limited increases in quantities of oil production, and the limited rise in oil prices in global markets during 2012 compared to 2011. Abu Dhabi's oil exports registered a growth rate of 6.9% during 2012 compared to approximately 5.4% in 2011. The report emphasized that the continuation of non-oil activities to achieving high rates of growth in recent years, evidence 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 2009. 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 2012. 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 2011. 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". 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 the report even though it 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; however, 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. For his part, Mohammed Omar Abdullah, Undersecretary of the Department of Economic Development, said that the new edition of the annual economic report, which highlights the main developments in the economy of Abu Dhabi in 2012 in particular, and during the period (2007-2012) 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 non-oil economic activities to real GDP from less than 44% in 2007 to 48% in 2012. Mohammed Omar Abdullah said that the significant development in non-oil activities emphasizes the enormous efforts exerted by the Emirate of Abu Dhabi in its surge towards the diversification of the economy in recent years, which turned non-oil activities into an important pillar and an essential component of the structure of gross domestic product. He said that 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. 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 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 2012. The report stated that Despite the drop in growth rate in 2012 compared to 2011, but 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 non-oil sectors which experienced strong growth in recent years. Data show that extractive industries achieved a 3.8% real growth in 2012, which was lower than previous rates realized by the activity during 2010 and 2011. 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 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 2007. Non-oil economic activities had a clear role in supporting the positive performance of the economy of the Emirate of Abu Dhabi in 2012. 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. In the same vein, the efforts and steps of the Government steps 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 2011. The report did not lose sight of the boom 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 2011. The average GDP per capita at current prices for the year 2012 registered to Dh 390.5 thousand registering a decline of 0.3% over the year, while the average GDP per capita at constant 2007 prices amounted to Dh 290.4 thousand in 2012, down by 2.2% compared to 2011. 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. 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 Dh 172.7 billion, compared to a growth rate of 14.8% in 2011. On the other hand, the period (2007-2012) 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. On the other hand, data indicate that gross fixed capital formation in 2012 in some economic activities registered good growth rates, after a series of decline and fluctuations in performance. As an example the manufacturing, building and construction and extractive industries activities recorded growth rates of (8.8% and 7.4% and 3.7%) Respectively in 2012 compared to rates lower rates of (1.6%, 12% and 26.8%) for the same activities respectively in 2011. The same goes for a number of economic activities in the group of service activity, 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 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, at 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 to continue 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 2012. On the other hand, the structure of the population of the Emirate of Abu Dhabi by nationality, revealed that UAE nationals constituted 20.4% of the total population of the Emirate in 2012, compared to 21% in 2011. The structure of the population indicated that there was a relative balance between UAE nationals 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. In the same context, the distribution of population by age, showed that the largest proportion of UAE nationals (59%), concentrated in the age group 15-64 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%, due 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 share of the age group (14 years and under) comprised 38.5% of the total population, while the share 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%. 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 2011. In the same vein, estimates indicate a slight increase in unemployment rate, to reach 3.2% in 2012, compared to 2.8% in 2011. 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 121.6 points in 2011 to122.9 points in 2012. 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 2010. 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 which reached 16.4% in 2012. The same group contributed by 52 % of the total rise in prices in 2012. According to data of the National Bureau of Statistics the UAE GDP at constant prices grew by 4.4%, increasing to Dh 1.025 trillion at the end of 2012, compared to Dh 982.7 billion by the end of 2011. GDP an current prices, also rose to Dh 1.409 trillion in 2012, compared to Dh 1.28 trillion in2011, registering a growth rate of 10.1%. All economic activities witnessed positive improvements in rates of growth in2012, which reflected favourably on the value of the State's GDP; especially the oil activities which maintained good performance over recent years because of the high and stable level of oil price in 2012. Despite high oil prices, the positive performance of non-oil activities has led to relative stability in the contribution of these activities to GDP at constant prices; as contribution stood at 67.3% in 2012, compared to 67.9% in 2011. This was an indication of the continuation of the national economy in further growth, and the improvement at the level of economic sectors and activities as well as the reinforcement of the economic diversification policy, in addition to the continuous growth of GDP. The average consumer price index at the State level rose to 116.78 in 2012 compared to 116.01 in 2011, bringing the inflation rate for consumer prices in 2012 to 0.66%; which was lower than the rate of 0.88% registered in 2011. The rise in consumer prices in 2012 came in view of the increase in prices of most major groups of the consumer basket, and the drop in housing group by 2.57%, which suppressed consumer prices worsening in 2012 This group constituted about 38% of the consumer basket, and thus played an important role in influencing the movement of the consumer price index in the State. The prices of alcoholic drinks and tobacco rose by 6.36%, food and non-alcoholic drinks increased by 5.24%, while education prices went up by 4.5%. Restaurants and hotels witnessed an increase of 4.14 %, clothing and footwear grew by 2.42%, prices of household equipment and by 2.11%, miscellaneous goods and services by 1.63%, prices of services rose by 1.09% health, recreation and culture by 0.23%, transport up 0.16%, and communications prices rose by 0.01%. Preliminary estimates of the National Bureau of Statistics on the volume of non-oil foreign trade of the UAE indicated that State's total trade with the world rose by 15% by the end of 2012, due to the increase in non-oil exports by 48% to Dh169.2 billion, and that re-exports increased by 0.04% to Dh 210.9 billion. Imports rose by 13.9% to Dh 686.5 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 State'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 State by 23%, the American group of countries assumed the third place with 9%, while the GCC group took the fourth place with 8%. Dr. Mugheer Khamis Al Khaili, the Director General of Abu Dhabi Education Council ( ADEC) in an article attached to the report said that the, the government of Abu Dhabi exerts all efforts to build a culturally and economically vibrant economy, and lays great emphasis on the education sector as an investment in the future of the people of the Emirate and an important element in social infrastructure for attracting talents and competencies; adding that the Government had developed and implemented an integrated strategy to upgrade the educational sector, at various public and private technical and higher education levels. Al Khaili explained that ADEC's 10-Year Strategic Plan, aims at providing a high quality comprehensive educational system, consistent with international standards and best practices. In close cooperation with local and federal government bodies, ADEC is implementing a two-pronged strategy for the development of public education and the stimulation of private schools. He said 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. 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 student's 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, and pointed out that 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. According to Al Khaili, the new school model is based on bilingual education, "Arabic and English ", which encourages science and math through using modern techniques and methods of teaching attractive to students and teachers alike. The system embodies using smart diverse and modern educational assessment techniques for students, and also provides facilities and educational needs according to the best international standards. The system also caters for providing an educational environment with sophisticated methods and technology, and making the necessary arrangements to ensure students health and safety. ADEC considers the private sector as a key partner in supporting this orientation, adopting the best practices and techniques and building local capacity to provide quality educational logistic services. 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 stressed the keenness of ADEC to provide the necessary support for private schools, by facilitating land grants, school buildings or private schools licensing mechanisms, for serious investors. He pointing out to the achievements that have been made in previous years, including the publishing the Private Schools Assessment first report, to improve transparency, encourage outstanding schools to expand, attract a number of excellent international schools, and close down villa schools. 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 that the Strategic Plan of Abu Dhabi Education Council that the plan the strategy for the higher education sector, seeks to improve the quality system of higher education 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 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; Providing all qualified students with affordable access to higher education. 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, in a separate article, 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 2030. He added that to accomplish these two objectives, the contribution of the non-oil sector, must be raised from its current level of 50% of GDP to two-thirds by 2030. 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. He explained that Abu Dhabi government, being mindful of these facts, had started to make considerable efforts since the middle of the last decade; and allocated enormous human and financial resources, not only to enable the private sector to assume a greater role in the economy, but also to provide the appropriate requirements for the prosperity and expansion of the private sector. According to him, 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, opening the door for the private sector to enter into the activities of health and education. He added that the government of Abu Dhabi did not stand for d this limit, but also 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. Al Raqbani said that the establishment of Abu Dhabi Council for Economic Development (ADCED) in 2006 came to entrust the Council with task of being the direct link between government and the private sector. In implementing this task ADCED is commissioned to consult the representatives of the private sector - who make up the majority of the board members of ADCEC, as well those who are non-board members, on all economic and policy matters, and conveys all views and proposals to the government in a conscious effort to embrace and accommodate the interests of the private sector in economic policies. 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 increased by 6.5% in 2012 (from Dh 218 billion in 2011 to Dh 232 billion), to constitute 33% of Abu Dhabi's GDP. Al Raqbani said that although that figure still represents a small share in the economy, but it is looked at 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, noting that this 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 (2013-2017), the private sector in Abu Dhabi, including foreign investors will have great and unprecedented opportunities for growth and prosperity in the coming period. He noted in his article that the government's role in the economy, will be limited to supervision, regulation, encouraging investment and diversifying sources of income; which will take the private sector to a new phase and opportunities of expansion that would enable it to assume a greater role in driving the economy, and tapping new activities to accelerate shifting to leadership, sustainability and growth. Falah Mohammed Al Ahbabi, the Director General of Abu Dhabi Council for Urban Planning, placed an article in the Economic Report of the Emirate of Abu Dhabi, In which he said that Abu Dhabi is now one the most prominent cities in the region, as it witnessed tremendous development in the process of economic, 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. To enable citizens and residents enjoy a sophisticated lifestyle, latest services and best housing, education and health care. He added that the need to keep up with demographic and economic developments and address the challenges of urban growth, require the development of an integrated framework which includes all regions of the Emirate and contributes to the establishment of integrated communities that meet the needs of future generations. It was noted by Al Ahbabi that current global and regional economic conditions have contributed significantly to the activation of the role of governments and regulatory authorities, in developing open and transparent frameworks capable of addressing the challenges of the real estate market and keeping up with the requirements of supply and demand. He indicated that Abu Dhabi Urban Planning Council was established in 2007 and envisaged with shaping the emirate's Urban features, ensuring compliance with the standards of sustainable development, providing integrated and modern infrastructure, and raising the level of life in accordance with sound and clear plans. 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 a Urban development plan, based on best practices, to meet the needs of the real estate market, in the field of planning project in new and existing urban regions. He stated that UPC has adopted a specific planning methodology to ensure proper planning during the rapid growth period, which consists of three different phases; embodying different strategic planning process. First; the development of a framework of regional plans to identify overarching principles and uses of private land in a specific region, followed the preparation of separate general plans for each region and finally putting together the final outlines for each basin in the region and each block in the basin. Director General of UPC, said that this method ensures arriving at the appropriate perception and setting the optimal planning of basic infrastructure development projects which include the integration of new lands for the establishment of community facilities, public areas and parking lots, development and improvement of pedestrian sidewalks transport and communications networks, in line with the vision of Abu Dhabi, aimed at upgrading the emirate cities to match the finest globally sustainable cities. He stressed that the Government of Abu Dhabi aspires to provide a more sustainable urban environment for the people of Abu Dhabi, where the government plans to do so by addressing various issues such as the quality of public areas, determining the distinctive identity of urban communities, social cohesion in addition to the great importance attached by the government to develop the infrastructure. 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. To meet this responsibility Falah Al Ahbabi said that to meet these responsibilities, UPC has also created the "Estidama" program 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, while maintaining and caring for the way and style of life in the Emirate of Abu Dhabi. He added that the "Estidama" program has launched many initiatives that meet UPC objectives, where Estidama in 2010 unveiled the "Pearl Rating System" program 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. In September this year, three years after the launching of this program, 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 2013 also witnessed the launching of a new initiative by "Estidama", which was considered as a key element in the overall orientation of UPC towards sustainable urban development; and in achieving the objectives of the "Abu Dhabi Urban Planning Vision 2030", known as the "Comprehensive Sustainable Communities". 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. Al Ahbabi stressed that the establishment of first class cities and supporting sustained economic growth, requires consistent urban planning and economic strategies; thus, the urban planning and economic decisions should complement each other and share the same overall vision. For his part, 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 passengers increased; as well as the points of tourist attraction and the variety of services aimed at serving the visitors of the Emirate, over the various seasons of the year. 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% percent to reach 2.38 million persons, while the nights of stay also hiked by 13% to register 6.99 million nights. Revenue and profits amounted to Dh 4.6 billion, increasing by 6% compared to the previous year. The tourism sector direct contribution to non-oil GDP amounted to Dh 10.4 billion, while its indirect contribution to non-oil GDP was estimated at Dh 20.9 billion, marking 2.6% and 5.3% respectively. He explained that growth rates registered in all major markets were high. 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", who 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 exceeded 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 or five-star 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 "conferences, meetings and incentives" 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. He said that Abu Dhabi Plan 2030" 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. - Emirates News Agency, WAM