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Business Cycle Index 2013 Revealed Strong Performance Of Sectors With Expectations Of High Growth Rates |
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The economic performance in the Emirate of Abu Dhabi improved significantly in 2013, driven particularly by the growth and development of real estate, tourism and trade sectors, amid expectations of continued stimulants of growth, backed by decision makers in the Government of Abu Dhabi. The results of the business cycle index for the Emirate of Abu Dhabi 2013, issued by the Studies Directorate of Abu Dhabi Department of Economic Development, showed that all sectors indicators reflected the strong performance of the economy of Abu Dhabi in 2013, especially during the second half of the year. Individuals, consumers, businessmen and industrialists praised the noticeable improvement in the economic performance of the emirate. The results showed the significant improvement which streamed the real estate sector and the revival in demand for real estate units. The commercial activity, during the second half of the year witnessed rising demand for various fast moving and durable consumer goods. The tourism sector recovered in the same period, especially during the month of December, when commercial licenses momentum was in place. The number of commercial and professional licenses in 2013 increased considerably compared to 2012. The performance of the business community in general, improved as a result of Abu Dhabi government decision to inject huge funds in infrastructure and completion of projects that stumbled during the previous years, in the wake of the global financial crisis. A quick review of most important economic developments revealed that the Emirate's real estate sector had performed well in 2013, with an increase in real estate buying and selling transaction. Selling prices soared in various regions of Abu Dhabi ranging between (14% and 26%), compared to 2012, driven by the positive growth experienced by the sector in the Emirate since the beginning of the year; and by the improvement in rental rates in Dubai, according to Asteco Abu Dhabi Q3 2013 report on the performance of the real estate sector in Abu Dhabi The data issued by Abu Dhabi Tourism '&' Culture Authority (ADTCA), indicated that the performance of the tourism sector had improve in the 10 first months of 2013, compared to the same period in 2012. Hotel facilities in the Emirate of Abu Dhabi registered record results during the second half of the year. The total number of hotel guests during the period (January-March 2013) reached (2,270,000 persons) up 16% compared to the same period in 2012; while the number of hotel nights increased by 26% to approximately (7,077,789 hotel nights). Boarding rooms rose by 21% to reach around (5,050,936) and average stay increased to (3.12 days) rising by 9%. This improvement resulted from conducting certain events which included the Abu Dhabi International Hunting and Equestrian Exhibition, the Pharma Bio World 2013 Abu Dhabi, the Formula 1 Etihad Airways Abu Dhabi Grand Prix 2013, in addition to the efforts to promote tourism in the Western Region in particular; and the large turnout observed by tourist destinations during holidays, especially from GCC countries, noting that Saudi Arabia, Oman, Qatar and Kuwait came on top of 20 external guests sources. This good performance was attributed also to the increase in business meetings, exhibitions, conferences, and many tourist programs that sought to host 2.5 million guests by the end of 2013. Comparing the period (January - March) 2013 to same period in 2012, revealed that hotel facilities revenue increased by 19%, reaching around AED 2.7 billion. Revenues of hotel rooms and food and beverage, went up by 22% and 18%, respectively; while hotel occupancy rate increased by 9% to mark 69%, compared to 64% during the first 10 months of 2012. The banking sector showed strong recovery in 2013, which reflected positively on the growth of banks profits. According to the expectations of the Emirates Banks Association, commercial banks operating in the country will expectedly achieve a growth of 20% in net profits for the year 2013, after having registered a net profit of AED13.6 billion in the first half of 2013. All reports, confirmed that local banks were able to surpass the global and regional turmoil, and the repercussions of the global financial crisis, to become the largest banking sector in the Middle East and North Africa. The Emirate of Abu Dhabi is keen to support the industrial at the level of geographic regions, especially the in Western Region; and strengthen the role of the sector to increase its contribution to GDP. Consequently, the period (June-September 2013) saw an improvement in the performance of industrial activities, and witnessed more investment flows in some large industrial projects. The Statistics Center- Abu Dhabi (SCAD) indicated that the industrial sector embraced 94 new industrial facilities after completing construction during the first half of 2013. Statistics showed that Abu Dhabi city attracted the largest number of those projects by capturing 67 of the new firms during the first half of the year. Al Ain attracted 18 manufacturing facilities which completed their construction works during the same period, while the Western Region hosted 9 new productive facilities only. As for the trade sector, the value of non-oil exports across the outlets of Abu Dhabi in September 2013 amounted to AED 10,537 million, while imports reached AED 8,206 million. Non-oil exports stood at AED1089 million and re-exports totaled AED1241 million, whereas with value of external trade in September 2013 increased by 7.2% compared to August 2013. With regard to licenses issued by Abu Dhabi Business Center of the Department of Economic Development to new members, the quarterly sub index showed that the number of new licenses issued in 2013 was 8,657 licenses, higher by 12.6% compared to 7,689 licenses issued in 2012.
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