November 21, 2008

UAE economy in 2007 up by 7.4% YoY

Arabian Business reported that UAE economy had grown up by 7.4% YoY in 2007 to reach AED 698 billion on the expansion of the manufacturing and construction sectors as well as oil & gas.

According to a ministry of economy report last week crude oil production accounted for 35% of the GDP down from 37.3% in 2006 and non oil sectors accounted for 65% of the GDP of UAE in 2007,. Manufacturing sector, whose diversified activities in oil, liquefied gas and factories in free zones contributed 13% to the GDP in 2007. Trade and repair services sector is the third biggest contributor to the country's GDP at 11%. The report said that the real estate sector is fast emerging a big contributor to the UAE's GDP. Last year real estate contributed 8% to the country's GDP by investing AED 25.8 billion in 2007.

The size of fixed investments in 2007 increased to AED 144.5 billion as compared to AED 121 billion in 2006 and the investment percentage to domestic product reached 20.7% in 2007.

The report attributes rise in private expenditure to the annual population increase, the rise in standards of living, rising consumption, as well as the increase in prices for all goods and services.

UAE has been striving to diversify its economy away from a dependence on energy exports by pouring oil revenues into real estate, financial services and infrastructure.