Innovation is projected to account for at least 5 per cent of UAE GDP by 2021, Sultan Al Mansouri, the Minister of Economy, told the World Economic Forum global summit in Abu Dhabi yesterday.
Increasing the proportion of GDP coming from the non-oil sector is part of the strategy to reduce dependence on the contribution from energy, which is forecast to fall to 20 per cent from about 30 per cent of the national economy in the next decade.
“This is a unique year in UAE history. It has been declared the year of innovation. We cannot depend on natural resources alone for our future,” the minister said at the opening plenary session of the WEF’s global agenda councils’ meeting.
“By the time the UAE is 50 years old in 2021, innovation will account for at least 5 per cent, maybe 7 per cent of GPD if we push harder,” he said on the sidelines of the summit.
Other areas that will be expanded to take the place of oil will be manufacturing, tourism and financial services, he said.
Ali Majed Al Mansoori, the chairman of the Abu Dhabi Department of Economic Development, said that the new financial centre in the capital, the Abu Dhabi Global Market, would increase the contribution from financial services. “ADGM is very close to the Abu Dhabi Investment Authority, which is one of the leading investment vehicles in the world,” he said.
“We will also seek to leverage opportunities in innovation with international partners from external corporations,” he added.
New techniques will be applied to specific sectors identified by the Innovation Council of seven ministers, in areas including education, information technology, health, transportation and aerospace.
Currently in phase one, the National Innovation Strategy includes 30 initiatives to be completed within three years, including new legislation, investment in specialised skills, private sector incentives and international research partnerships, said the economy minister.
Klaus Schwab, the founder and executive chairman of the WEF, told the gathering: “The UAE has performed very well in our global competitiveness rankings. But if we produced a ranking for ‘future readiness’ – which we might very well do soon – it would be at the very top.”
Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, and Sheikh Hamed bin Zayed, the managing director of Adia, attended the meeting.
fkane@thenational.ae
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