The road to 2030 (page 1 of 2)

Speaking at a consultancy session to mark the release of the document, the executive director of international relations at the Department of Planning and Economy, Hamad Al Mass, articulated how fundamental logistics will be to the emirate's plan.

'Infrastructure lies at the core of our strategy for economic and social development,' he said. 'Abu Dhabi is blessed with a strategic location...however, the emirate needs efficient and modern infrastructure to take full advantage of this natural position and to become the regional and global hub it aims to be.'

And Abu Dhabi has plenty of work to do - both internally and from an international perspective. Despite an abundance of space, the emirate's major city centres have significant congestion problems and internal transport is hugely dependant on taxis.

The emirate has long been an important stop on trade routes and the report shows that Abu Dhabi clearly sees its location as a major driver for economic growth.

'Infrastructure is key for economic development, trade, and ultimately to the success of our strategy,' said Al Mass. 'For that reason the government is undertaking major investment projects including a new port, an industrial zone at Taweelah, the expansion of Abu Dhabi International Airport, and the establishment of special economic zones.'

Air transport growth

Upgrading Abu Dhabi's airport will be a priority for its leaders. Etihad, the state-backed airline, has confidently predicted a growth rate of 4.7% year-on-year for the next 25 years and this will require significant expansion of current facilities.

The plan also accounts for an increase in tourism up to 2.7 million a year in the next five years - a rate that would be difficult to sustain without an increase in capacity.

Development is set to take place in three phases, with an eventual goal of processing a staggering 30 million people a year by 2030. The first phase, which should increase volume to 12 million, is due for completion by 2010 and will be an interesting litmus test for Abu Dhabi's ambitions.

Dubai International Airport (DIA) currently deals with the bulk of the United Arab Emirates' (UAE) air traffic and with Al Maktoum International Airport being constructed within easy reach of Abu Dhabi, a facility rumoured to be capable of handling more than 10 times the number of passengers of DIA, hitting growth targets will not be straightforward.

Indeed, the report acknowledges that there will be an 'overcapacity among airports in the region in the medium term'. Expanding an airport that is not even approaching its capacity could be a difficult decision for Abu Dhabi at a later stage, depending on the market's development.

Boosting trade facilities

While boosting tourism is a key objective, the UAE has always been a trading nation and the report signals Abu Dhabi's intention to diversify the economy so that oil no longer dominates the emirate's export market.

The report sets a target of 7% annual economic growth through to 2015 and places great emphasis on developing Abu Dhabi's non-oil sector. The government estimates that oil's contribution to the economy can fall to 44% by 2020 and 36% in 2030. In the last measurable period (2005-2007), oil contributed 59% to gross domestic product. For Abu Dhabi to get any where near these targets, says the report, there will have to be significant growth in export-orientated industries - but moving the port from the edge of the city to Khalifa Port and Industrial Zone at Al-Taweelah has apparently helped to boost volumes.