Abu Dhabi will combine the experience of East and West and mop up investments to build a strong non-oil industrial base with private sector participation, a senior official has said.

Sheikh Hamed bin Zayed Al Nahyan, chairman of the emirate’s department of economy, said the plan was to draw in investments of close to $10 billion for its free trade zones and provide the infrastructure that would facilitate the industrialisation process. 
While the emirate would concentrate on non-oil industries, it was developing plans to set up a large complex to service the Middle East’s onshore and offshore oil and gas operations, Sheikh Hamed said.
“We are looking forward to becoming one of the best models in economic development in the Middle East in 10 years.
“If we can combine recent East and West experiences with our cultural needs I think we can build a very good model.”
One of the planned industrial zones, Musaffah, has already received investments of Dh5 billion ($1.36 billion)
The official said Abu Dhabi had suggested to companies with facilities in the US and Europe that they could consider setting up their operations in the emirate where they would not be so restricted by tight margins and tough regulations.
He made clear Abu Dhabi would take a macro view of development, seeking not just investments but creating a support system through infrastructure and regulations to sustain development as it occurred.
Focusing on the industrial sector was not just about building factories but creating a “comprehensive mechanism” including funding, setting up attractive facilities and ensuring the smooth flow of goods to local and foreign markets.
In order to study successful models, Sheikh Hamed has visited several countries that have advanced far in the industrial field.
Abu Dhabi’s industrial strategy would include the financing of small and medium-scale industrial ventures
“Our department’s priority for the coming stage is to create investment opportunities to attract capital including national funds that have been invested abroad. Some of those overseas investments have retuned home and this was reflected in a sharp increase in bank deposits,” Sheikh Hamed observed
“Our private sector is bringing capital back from abroad. Imagine such an opportunity. The money could go back abroad again. But while it is here, it is a rare opportunity. Therefore we have to commit ourselves.”
The official touched on the importance of backing the private sector and indicated that more public enterprises would be privatised.
Establishing technology-based industries and transferring technology to the UAE economy were important elements of the strategy to industrialise rapidly, he said, adding that the setting up of research and development institutions could be taken up later.
Abu Dhabi was considering using the proceeds from privatisation programmes to finance further development.
Revenue from privatisation would possibly go into a local fund in which banks would be encouraged to participate. The fund would support investment in the industrial zones, he said.
Overseas investors would patronise the zones if appropriate infrastructure and services were put in place.
Plans existed for developing a large complex to meet the needs of onshore and offshore oilfields in the Middle East.  “There’s a huge market potential. The annual value of the local market is about $1 billion while the regional market is worth nearly $4 billion,” Sheikh Hamed said.
Feasibility studies for the “mega project” were in their second stage after the first stage found that a free-market complex hosting oilfield services would be commercially feasible.
A hallmark of the complex would be low-cost operations. Complex infrastructure would include roads, ports and possibly an airport and expectations were that it would function as a free zone.
Sheikh Hasher said the location of the oil and gas services complex would be decided after the second stage of the feasibility study was completed. It was not disclosed when that would happen.