Duba: The UAE, the second biggest Arab economy, is set to record 3.2% growth in GDP this year, a top official said.
Sultan Bin Saeed Al Mansoori, UAE Minister of Economy, Saturday, unveiled the ‘UAE Economic Report 2009’ which highlighted a growth in GDP of 1.3 per cent last year, with the non-oil sector contributing to 71.6 per cent of the GDP, underscoring the success of the nation’s economic diversification initiatives. This means, the country did not face recession even as it faced the worst global economic crisis in 70 years.
The economy is set to achieve a growth in GDP of 3.2 per cent in 2010 led by a focus on adopting industrial policies that will drive sustainable development across the UAE. The real GDP growth for year 2010 is projected at 2.5 per cent.
The GDP at current prices for 2009 is AED 914 billion and the GDP at constant prices was AED 514.5 billion. The rate of inflation was 1.56 per cent, compared to 12.3 per cent in 2007-08, and has declined by 0.01 per cent at the end of the first quarter of 2010, compared to the same period in 2009. The rate of inflation is projected to be managed at 1.1 per cent by end-2010 and at 2 to 2.5 per cent by end-2011 as global economic recovery gains momentum.
Al Mansoori said the Economic Report is a key reference for decision makers in the UAE and the world. “The report provides a clear outlook and perspective of the UAE economy and how the nation has successfully addressed the challenges of the global financial crisis. Our emphasis on economic diversification and openness has contributed to an increase in the share of the non-oil sector to 71 per cent of the GDP compared to 66.5 per cent in 2008.”
He added: “The Report further highlights the contribution of the various non-oil sectors with manufacturing, construction, retail, real estate, financial services and tourism, among others, being significant contributors. The global economic recovery will further strengthen the performance of the non-oil sectors, and our expected growth rate will be higher than that of other high-income industrialised nations.”
Al Mansoori said the UAE leadership is committed to strengthening the economic performance and enhance the integration of all key components in line with the UAE Vision 2021 – to make the UAE among the best countries in the world by 2021 - and its key components, namely, an ambitious and confident people who adhere to their heritage; a strong Union with common destiny; a competitive economy that is led by innovative and knowledgeable UAE nationals; and high quality life endowed with sustainable environment.