The road to 2030

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.

Internal transport infrastructure

Abu Dhabi is intent on raising its profile as a trading port and tourism destination, but it also plans to overhaul the existing internal transport network - which is welcome news for residents and those who do business in the emirate.

The government is considering the possibility of a metro-style network for the city, with the city asking for bids for the construction and design of 131km of planned lines, and will be watching closely when Dubai unveils its inner-city rail service later this year.

The report also shows that there will be substantial investment into improving links between Abu Dhabi city, the Western region of the emirate and southern Al Ain. Indeed, 'the Abu Dhabi Municipality has identified investments worth an estimated $950m to improve motorways in the area,' says the report.

Of the plans to upgrade Abu Dhabi's transport infrastructure, a scheme to link several of the emirates islands by road is perhaps the most eye-catching. The highway, known as the Shahama, will connect the central business district, Saadiyat Island, Yas Island, Al Raha and the airport.

The highway is being delivered by the Urban Planning Council, the Department of Transport (DT), the Tourism Development and Investment Company and members of the private sector, such as Aldar, and is estimated to cost Dhs1.83 billion. 'This highway will relieve congestion in the Salam Street corridor,' said Faisal Ahmed Al Suwaidi, executive director of highways at the DT. 'Moreover, its design makes provision for future mass transit options in the central median.'

Abu Dhabi 2030 suggests that the government will be open to proposals to develop a UAE-wide rail network, with the authors noting that 'transportation as a profitable sector will make an important contribution to the emirate's economic diversification'.

It also confirms that construction will go ahead with a 1.5 million barrel per day pipeline to Fujairah in the north of the country. The venture will 'will allow for significant oil exports outside of the Straits of Hormuz,' says the document.

The recent fluctuations in oil prices and general downturn in the global economy highlight the difficulties Abu Dhabi faces in trying to plan for the future. Nevertheless, the ambitious plans to upgrade the emirate's infrastructure are another reminder of the resources available to Abu Dhabi - and with Europe and the United States looking at years of state debt following the banking crisis, many will be looking at Abu Dhabi's coffers with envy.