A catalyst for business growth in Abu Dhabi

Eng. Abdulla Abdul Aziz AlShamsi, director-general of the Abu Dhabi Investment Office (ADIO), talks to The Energy Year about the growing ease of doing business in Abu Dhabi and ADIO’s role in fostering a better investment ecosystem. As the key government hub supporting investment in Abu Dhabi, ADIO aims to grow the emirate’s private sector and diversify its economy.

To what extent has the ease of doing business in Abu Dhabi increased recently?
Abu Dhabi is one of the easiest places in the world in which to do business because of a positive investment environment, enabling regulations, stability and security, access to talent, liveability, cutting-edge infrastructure and connectivity. Innovative companies benefit from the emirate’s extensive R&D support network, access to capital and talent, some of the world’s largest SWFs [sovereign wealth funds], a time zone that favourably overlaps with global markets and a wider region filled with potential.
We do not rest on our laurels and the government continues to make it even easier for companies to set up in the emirate by streamlining processes, reducing business fees, simplifying setup requirements and offering an array of long-term visas. The UAE now permits 100% foreign ownership of onshore companies in more than 1,100 activities without the need for a local partner. The government also recently reduced the requirements to set up a business by 71% and slashed business setup fees by 94%. As a result of these initiatives, a total of 25,593 new economic licences were issued by the end of December 2022 and 73,212 licences were renewed, indicating strong growth and confidence in the Abu Dhabi business sector.

What features make the emirate a destination for energy and innovation investors?
For companies in the energy sector, Abu Dhabi is blessed with significant natural resources and exceptional companies operating across the supply chain, so our infrastructure and talent pool is second to none.
Additionally, the emirate has been actively diversifying its energy mix by focusing on renewable energy sources and sustainable initiatives, making it a popular destination for investments in clean energy and decarbonisation efforts. ADIO also actively encourages innovation in the sector and supports initiatives that promote R&D and collaboration between academia and industry.
How is ADIO fostering a better investment ecosystem in Abu Dhabi?
ADIO is the catalyst for leading businesses to grow with Abu Dhabi. As the entry point for those investing in Abu Dhabi, we provide access to Abu Dhabi’s innovation ecosystem, public land-bank and major infrastructure projects.
Working across government, we are a partner in the development and diversification of Abu Dhabi’s economy. We are focused on growing the economy through increased private-sector involvement, including developing high-growth economic sectors aligned with Abu Dhabi’s long-term vision.
Public-private partnerships (PPPs) are an important part of the strategy. ADIO is the central Abu Dhabi government body responsible for the facilitation and procurement of all infrastructure projects delivered through Abu Dhabi’s PPP framework, in line with our mandate to support private-sector investment in the emirate. We work with entities across Abu Dhabi, including the Department of Education and Knowledge (ADEK) and Department of Municipalities and Transport (DMT) to facilitate PPPs as part of the government’s plan to procure approximately AED 10 billion [USD 2.72 billion] worth of infrastructure partnership projects.
A good example is Abu Dhabi’s energy-efficient Road Lighting LED PPP project, which is now in its second phase. The latest phase was awarded to a French consortium of EDF and ENGIE, who will replace more than 130,000 streetlights with energy-efficient LED technology, resulting in a reduction of approximately 74% in power consumption.

In what ways are you contributing to further investments and partnerships within the energy industry?
ADIO recognises the importance of the energy industry to Abu Dhabi’s economy and we actively engage with companies in the sector, both domestically and internationally, to identify investment opportunities, support project development and facilitate collaborations.
A key part of ADIO’s mandate is to enable the UAE’s net-zero ambitions and accelerate the transition to a low-carbon future. By supporting R&D in clean technologies, ADIO is contributing to the advancement of sustainable energy solutions within Abu Dhabi. A good example is our collaboration with Siemens Energy, which supported the establishment of its new Middle East Customer Innovation Centre in Abu Dhabi and is helping to accelerate the commercialisation of innovative solutions in the journey to net zero in the UAE and globally.

How is ADIO helping Abu Dhabi to become a home to different global tech ecosystems? What are the most important digital and innovation projects it is taking part in?
Abu Dhabi is recognised as a regional centre of excellence within the ICT space. We have taken a leadership position in new technologies such as 5G alongside being ranked as the smartest city in the MENA region, having near-universal high-speed broadband across the emirate and being the first place in the world to have 100% fibre-to-the-home connection.
The emirate is focused on using technology to achieve economic and social progress, so innovation is an underlying theme for many initiatives to grow the private sector. While Abu Dhabi is open to all businesses, innovation-focused sectors like agtech, financial services, health services and biopharma, ICT, industry and tourism are prioritised, as they provide huge opportunities to develop new solutions to drive global impact.
The companies we work with in the cloud computing space, for instance, have brought huge benefits to the wider innovation ecosystem. For example, Bespin Global has set up its regional HQ and two innovation centres in Abu Dhabi to accelerate digital transformation from the UAE capital. In addition, Amazon Web Services (AWS) has opened a Cloud Innovation Center in Abu Dhabi to empower organisations to quickly create and test new ideas.

What are your short- to medium-term goals and strategy to attract investment into Abu Dhabi in the next two to five years?
ADIO is here to help transformative businesses achieve sustainable success in markets from Abu Dhabi to the world. We remain focused on supporting sectors aligned with Abu Dhabi’s long-term vision, with the goal of growing the economy through increased private-sector involvement.
ADIO’s investment outlook for Abu Dhabi remains highly positive, driven by the emirate’s commitment to economic diversification, innovation and sustainability. In 2021, we opened eight offices in cities including Tel Aviv, New York, San Francisco, Frankfurt, London, Paris, Beijing and Seoul as part of a series of strategic initiatives to boost support for investors around the world. We will continue to leverage our resources and expertise to support high-quality investments, promote the growth of the private sector and contribute to the achievement of Abu Dhabi’s long-term economic goals.

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