Signs that the UAE economy is firmly on the road to recovery and consolidation after turmoil brought on largely by a collapse of the real estate market in 2009 are evident.

Consumer confidence has grown, the real estate market is looking up and jobs creation is expected to accelerate with expectations that investments will grow. The principal emirates of Dubai and Abu Dhabi are planning mega projects, adding to some high-investment initiatives already launched and running, particularly in the fields of airports, ports and railway infrastructure.

Another positive sign is a fall in the incidence of returned invalid cheques. The Central Bank reported that payments worth $12 billion were returned as invalid in 2012, representing a 15.3 per cent drop compared with 2011 and reflective of better economic times.

In the wake of an upturn in public and private projects, recruitment is climbing. It has been reported that 15 per cent more jobs are being advertised than in the previous year with traditional sectors such as oil, gas and petrochemicals driving the jobs market. The travel and hotels market also looks good to increase employment.

Ducab is a prominent supplier of cables in the region

“The economy has improved and confidence has returned to the private sector, and in our experience there are many employers out there who are currently in hiring mode for everything from marketing jobs to manual construction work,” said a spokesman for Middle East specialist Mackenzie Jones.

“With so many serious construction projects in the pipeline, we are seeing considerable demand for workers in many related industries such as utilities and logistics, but we’re also witnessing growth in FMCG, retail and healthcare/pharmaceuticals, for instance.”

Ian Robertson, CEO, Jones Lang LaSalle Mena, remarked: “The foundations are being laid for a recovery from 2014 with a number of major infrastructure projects scheduled to start later this year. We also expect the real-estate in both Abu Dhabi and Dubai to benefit from increased economic activity between the UAE and East Asia, specifically China and South Korea as well as sub-Saharan Africa and Australia.”

According to the latest figures from Ventures Onsite, the UAE has a value of projects planned, under tender, under construction or on hold, of  $900,953 million.

Optimism welling up from the previous year and spilling onto this year has translated into predictions that the UAE economy will overtake the International Monetary Fund’s estimate of 3.7 per cent growth for 2013 and could touch
4 per cent.

But cautions Amit Tyagi, vice president of risk management, National Bank of Abu Dhabi: “Current ebullience is justified, but should not be a reason for complacency. Policy makers should be mindful of the risks of a further increase in the break-even price of oil. A policy framework to facilitate market-based finance will help to fill the gap left by deleveraging of foreign banks, and sensible counter-cyclical measures to prevent asset bubbles will be welcome.”

Those riding on the bandwagon of hope note that the non-oil segment accounts for 60 cent of the economy and therefore will not be directly affected should there be a situation of lower oil prices. The sector outside the hydrocarbons industry is vibrant and has advanced remarkably, even in such high-tech areas as aviation and defence products.

INDUSTRIAL ADVANCES
Abu Dhabi government-owned Tawazun announced the other day it has partnered with defence and security company Saab to create a joint venture – Abu Dhabi Advanced Radar Systems (Adars) – for the development, manufacture, assembly and integration of radar systems.

“This partnership with Saab will see us invest in advanced technologies to develop unique products for the global defence market,” said Saif Al Hajeri, CEO of Tawazun. The Adars facility will be based in Al Ajban, outside Abu Dhabi city.

And in another example of sophistication, Al Ain-based aerostructures firm Strata Manufacturing delivered four of its first fully assembled Airbus A33- ailerons to the plane maker at a ceremony in Bremen, Germany.

High-tech manufacturing was further evident with displays by Abu Dhabi Ship Building (ADSB) of an MRTP16 high-speed interceptor, the 27 m Ghannatha Class missile boat and the 72 m Baynunah Corvette at a recent expo.

The UAE has made headway in another marine sector – pleasure boats. Local manufacturers of these craft will be out in force at a yacht show in Dubai in early March. A “Made in the UAE” pavilion is being created to demonstrate local capability and achievements.  A report by Mike Derrett Marine states that boat sales in the UAE soared 40 per cent in 2012 compared to 2011.

More traditional industries such as metals and plastics have built up considerable capacity in recent years and are recognisable brands regionally and in some cases globally.

Dubai Aluminium has crossed the million-tonnes-per year-capacity mark and is also seeking international markets for its proprietary technologies in the manufacturing process. Its sister company Emal is ramping up production and together they constitute a formidable force in the primary aluminium field.

Emirates Steel has fast tracked its development in the past four years and recently added size 40 mm to its rebars range in anticipation of big-size construction projects that will require that product category. Making size 40 will also be a big step towards reducing dependence on imports and matches well the national vision of self-reliance.

A Ministry of Foreign Trade study shows the UAE produces 25 per cent of all plastics produced in the GCC region with 600 operating factories. Abu Dhabi-based Borouge will produce 2.5 million tonnes of plastics annually by 2014 after an expansion.

Away from metals and plastics, the UAE is performing well in the food sector with exports rising 10 per cent in 2011 to Dh17.11 billion ($4.6 billion) year on year. There is also national pride over cables manufacturer Ducab and the global success of RAK Ceramics.