Ras Al Khaimah: The UAE government is seeking to reduce water and power consumption by 10 per cent, which will translate into Dh3.5 billion in savings per year, Minister of Energy, Suhail Mohammad Al Mazrouei, said.

“Today, as never before, we see the urgent need to reduce consumption as the average annual increase in the consumption of power and water in the UAE has touched 6 per cent,” Al Mazrouei said while speaking at the UAE Economic Planning Forum in Ras Al Khaimah on Wednesday. “Water and electricity services are subsidised by the government. These subsidies amount to nearly Dh35 billion per annum.”

He said they are working to support a culture of responsible consumption in various government and private establishments as well as in homes, schools and mosques.

The two-day economic forum was inaugurated by His Highness Shaikh Saud Bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah.

Several senior federal and local government officials and experts in innovation and economic affairs are taking part in the forum.

On the drop in oil prices and its impact on economic growth on the country, the Minister of Energy said that the oil sector’s contribution at present is less than a third of the gross national revenue of the country.

“This is what allowed us to absorb the impact of fluctuations in the global oil prices. It is a result of the growth and contribution of non-oil sectors in supporting the sustainable growth trajectory of the UAE,” Al Mazrouei said.

According to him, the drop in oil prices has impacted positively on several economic sectors with transportation and storage sector registered a 10 per cent growth increase as against 7.9 per cent in 2013, the wholesale and retail sector 8 per cent as compared to 6.8 per cent in the previous year and the building and construction sector by 6.1 per cent in 2014, as against 3.4 per cent the previous year. “These are numbers that validate the strength of our national economy and its ability to quickly adjust to global economic changes,” he said.

Speaking about the deregulation of fuel prices, he said it was being hailed internationally as a major reform that had a tremendous impact on free market policies and economic openness.

“The decision to liberalise fuel prices, which has been in effect since last August in the UAE, was a pioneering example for countries in the GCC region. It has prompted other countries also to examine the possibility of similar reforms.

“We believe the lifting of fuel subsidies and liberalising of oil prices will pay us rich economic, social and environmental dividends. It will also positively impact our investment climate besides strengthening the country’s competitiveness in supporting free market principles.”

The UAE government cut fuel subsidies starting from August 1. A new fuel price structure linked to global oil prices was adopted.