The results of macroeconomic and sectoral indexes reflected a positive performance of Abu Dhabi's economy, particularly non-oil activities in the second quarter of 2018, reflecting rising levels of confidence and optimism among business community & consumers regarding future economic situation in the Emirate.
This has been stated at the Follow-up report of economic performance of the Emirate of Abu Dhabi for the second quarter of 2018, in light of the results of macro and sectoral indexes for the economy of Abu Dhabi, issued by Department of Economic Development –Abu Dhabi based on the data issued by Statistics Centre Abu Dhabi.
H.E. Saif AL Hajeri, Chairman of ADDED Stated that results are issued at the time when a range of economic and development initiatives & associated programs have been declared at the level of Federal & local governments, intended to stimulate economy, enhance business environment and and support the development process in the Emirate of Abu Dhabi and the UAE.
In that connection, he referred to the initiatives of the catalystic package from Abu Dhabi Government estimated at 50 billion dirhams, and to Abu Dhabi development accelator Program (Ghadan 21), resolutions of Federal Government about the proportion of foreign ownership in companies, residence facilities for investors, qualified personel and retirees. In addition to other initiatives launched at the level of national entities in the Emirate of Abu Dhabi.
H.E. Saif AL Hajeri, expected that advancing the implementation of the declared economic & development initiatives, give the prevaling levels of confidence and optimis among consumers in Abu Dhabi, will contribute to bringing more attractiveness in the business & investment environment in the Emirate. through stimulating the domestic demand for products of business sector of goods and services, thereby fostering the levels of confidence and optimism among all parties to the economic process and ensuring the continued positive interaction with the remaining economic accelerators.
H.E. underlined that all this would have a positive impact on strengthening the performance of non-oil activities and supporting of Abu Dhabi economy's capacity to maximize opportunities resulting from the implementation of these economic and development initiatives & associated programs on one hand, and the continued improvement in the world economic activity on the other hand.
Concerning the oil sector, H.E the Chairman of ADDED explained that the continued work in the agreement on reducting oil production by OPEC & its partners within the second half of 2018, has contributed to achieving stability of world oil markets and price subsidies. Given the understandings among participating states, it is expected that the anticipated increase in oil production would lead to support the growth of the oil sector in the Emirate of Abu Dhabi therefore, support economic growth at the macro level during the second half of 2018.
Follow-up report of economic performance of Abu Dhabi for Q2 indicated that according to preliminary estimates issued by Statistics Center-Abu Dhabi, the value added of non-oil activities (at constant prices) had an increase in the second quarter of 2018, with a growth rate of 2% in the said quarter.
According to the report, in addition to the increase in the value added of oil activities in the same quarter by 1%, in light of developments related to the agreement to reduce oil production between members of OPEC & independent producers, this has led to accelerate the growth of GDP (at constant prices) with a growth rate of 1.5% In the second quarter of 2018. The relative contribution of non-oil activities in the GDP at current prices amounted to about 59.3% in the said quarter.
Moreover, ADDED's report pointed out that the performance of non-oil activities in the Emirate of Abu Dhabi during the second quarter of 2018 was consistent with the trends recorded by several sectoral indicators and confidence indicators by the end of the said quarter.
The report noted that head-count index for consumers' prices in the Emirate of Abu Dhabi during the second quarter of 2018 recorded 111.9 points in June of the said year, compared to 111.3 points in May of the same year. Whereas annual inflation rate rose slightly in June to reach 3.3% compared to 3.2 in May thus, the annual inflation rate during first half of 2018 totaled 3.6% compared to the same period in 2017.
Regarding foreign trade, the report stated that the Trade total value of commodity non-oil external trade at entry points of Abu Dhabi in the period (January-June) of 2018 totaled 80.1 billion dirhams thereby reflecting a slight decrease by 0.5% compared to the same period of 2017.
The report showed that this that it came as an outcome of the overall variations in its components. The value of imports declined by 3% during the first half of 2018 compared to the same period of 2017. The value of non-oil goods exports increased by 1.5%, while the value of re-exports increased by 10.5% during the same period.
Regarding tourism sector, ADDED's report pointed out that based on the data of Statistics Center-Abu Dhabi, occupancy rate in hotel establishments increased by 1.2% to 65% in the second quarter of 2018. The average length of stay is 2.6 per night, marking an increase by 5.8%.
The report also indicated that China represented the largest market for visitors to Abu Dhabi during the period (January-June) of 2018. The number of hotel guests in Abu Dhabi from China totaled 215,000, up 15.6% over the same period of 2017, followed by India with 197 1,000 guests, and then the UK with about 136,000 guests. At the level of the Arab countries, Egypt topped the largest export market for tourists to Abu Dhabi, where the number of tourists during the period (January - June) of 2018 about 81 thousand guests.
As for the Capital Market, Follow-up report of economic performance of Abu Dhabi indicated that ADI ended the stock market's sessions by the end of the second quarter of 2018 to reach 4560.03 points, marking a rise of 3.04% in the said quarter compared to the same quarter of 2017. Where the index had recorded 4425.4 points. The performance of the general index of the market during the second quarter of 2018 came as an outcome of the improvement in the performance of a number of its sub-indicators.
According to the report, some sectors of the Abu Dhabi Securities Exchange marked a rise in its indexes by the end of the second quarter of 2018 compared to the same period of 2017. This included the energy sector, which recorded a rise of 44.4%, followed by the banking sector which rose by 9.2% in addition to other sectors.
The level of economic performance of the Emirate of Abu Dhabi on the basis of development indicators' results was positive within the second quarter of 2018, as per various macro & sectoral indicators. The overall analysis of confidence indicators' results, during the said quarter reflects improved levels of confidence and optimism among consumers regarding the future economic situation in the Emirate.
The report stated that results of consumer's confidence index during the second quarter of 2018 experienced higher levels of confidence and optimism among consumers in the Emirate of Abu Dhabi, with their various characteristics as a result of the improved consumer perception and positive assessment of the economic situation in the saidquarter. Besides the growing levels of optimism in their expectations about the future of the situation Economic development in the Emirate.
Furthermore, the report clarified that this reflects the strong consumer confidence in the Emirate's economy, with its components as prevailing consumer confidence levels represents one of the enablers that may contribute to maximizing the degree to which Abu Dhabi's economy, especially non-oil activities, leverage opportunities arising from Implementing the announced initiatives and continuing improvement in the pace of global economic growth during 2018.
Regarding the results of Confidence Index in the Business Environment for the second quarter of 2018, the report noted that there is a state of uncertainty and reservation in the business community. Concerning the outlook of some economic establishments on the future of their business, in terms of volume of production, sales, prices, profits as well as other aspects of internal performance of the establishments.
The ADDED'S report anticipated that implementation of the announced economic and development initiatives & associated programs, besides the growing confidence of consumers, will contribute to enhancing business confidence and eliminating the fears of some about the future, which will complement the confidence required within the system of available enablers for the Emirate's economy. Thereby enhancing its capacity to maximize opportunities arising from the implementation of the initiatives & programs referred to on one hand, and the continuing momentum of global economic growth on the other hand.