Abu Dhabi set up yet another fund last week for its investment and developmental plans to revamp its economy. The 163.4 million dollar fund has been created for the mega-events it plans to host in the new economy. The government intends to finance global partnerships in the field of entertainment, which will support its larger aims of boosting cultural and entertainment tourism in the emirate. This latest 600 million dirham ($163.4 million) fund is a tiny addition to its larger investments that have been focused on revamping its economy and reducing the overdependence on oil resources.
There’s already been a string of investments that have been geared towards diversifying Abu Dhabi’s economy. The emirate draws inspiration from nearby Dubai in this regard. Dubai has successfully established itself as a world-class visitor attraction and a landmark for entertainment, shopping, and leisure activities. Abu Dhabi, the capital of the UAE, is pumping billions of dollars to this end as it intends to develop its tourism potential, attract investment in the industrial sector and wean itself off of the oil dependence at the same time.
At the moment, Abu Dhabi is nowhere close to where the neighbouring Dubai is, but it’s fast picking up pace as can be judged from the huge investments that are going into the effort. The recently created 600 million dirham fund makes up part of the much larger, almost 50 billion dirham initiative called the Ghadan 21.
Ghadan is an all-encompassing reform initiative that the emirate has undertaken in an attempt to revamp the entire structure of its economy, which has traditionally depended heavily on the oil trade. The Arabic word “Ghadan” translates to “tomorrow” in English. The reforms will touch several areas of the economy; from business and investment reforms, social development to innovation and entertainment. The reforms are intended to be introduced between 2019 and 2021.
One of the major legs of the reform agenda is to reform the business laws and regulations to make the emirate more business and investor-friendly. A fresh licensing regime has been rolled out in this regard, which will be particularly hospitable to businesses developing new technologies. Furthermore, an instant license scheme has been introduced. This will boost commercial activities in the emirate and encourage entrepreneurs, both local and foreign, to invest in the local business landscape. Much of the application process has been moved online to further facilitate the investors.
Similar initiatives have been introduced across other areas of the economy in the form of cultural, infrastructural, and leisure investments across the emirate.
According to the culture and tourism department, this fund will help to draw the best event organisers and entertainment businesses from all over the world to invest in Abu Dhabi. These new investments will help to add to the existing attractions of the capital, such as the Louvre Abu Dhabi, the Formula One race track and the theme park by Warner Bros.
