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UAE least dependent on oil exports
Country's economy is most resilient among GCC states because of diversification.
- By Suzanne Fenton, Staff Reporter
- Published: 23:04 February 10, 2009
Dubai: The UAE is the least dependent of all the GCC states on oil exports, making its economy more robust, a new report suggests.
The UAE ranks first among its five GCC counterparts in terms of non-oil contribution to all exports.
The UAE's oil exports reached $100.2 billion (Dh367 billion) in 2007 ranking it fourth among Opec producers.
However, the UAE is the least dependent on oil exports, with a 58 per cent contribution by oil exports in the exports structure in 2007.
The UAE ranked fourth in a World Trade Organisation report on foreign trade following the European Union ($291.5 billion), Russia ($225.3 billion) and Saudi Arabia ($205.8 billion).
The value of international oil exports reached $2.3 trillion in 2007, a 13.3 per cent increase over the previous year.
UAE oil exports contributed 57.9 per cent to national exports in 2007, a nine per cent decrease, compared to 63.7 per cent in 2000.
In Kuwait, there was a 96 per cent contribution by oil exports in the exports structure, in Qatar a 93 per cent contribution, an 88 per cent contribution in Saudi Arabia and a 79 per cent contribution in Bahrain.
In Oman, there was a 20 per cent increase in contribution by oil exports in the exports structure, since 2000.
In 2000, Oman registered a 79 per cent contribution by oil exports and a 95 per cent contribution by oil exports in 2007, the report showed.
By being more diversified and less dependent on oil exports, countries are more economically sound as they do not just rely on just a single commodity.
"If you look at the policies ongoing [in the UAE] and compare them with countries that are heavily dependent on oil and gas, for example, Qatar, then it is more vulnerable," said Kate Dourian, editor of Platts Middle East.
If a country does rely on one commodity, which then suffers a massive price reduction, then the country is less insulated, economists say.
"The more diversified a country is, both in terms of output and exports, the greater the economic resilience," Monica Malik, senior economist with EFG-Hermes, told Gulf News.
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