UAE's GDP poised to exceed Dh1tr

Dubai: The value of goods and services produced in the UAE this year is expected to exceed Dh1 trillion, Ahmad Humaid Al Tayer, Governor of the Dubai International Financial Centre, told reporters on Wednesday.

"The UAE's tourism, transport, trade and re-export sectors grew by double digits and contributed to the economic growth. We expect the total GDP of the UAE to exceed Dh1 trillion by the end of 2010," Al Tayer said at a conference on the impact of the media on Arab banking and financial sectors organised by the Union of Arab Banks in Dubai.

The Economist Intelligence Unit recently projected that the UAE's nominal GDP will reach Dh1 trillion, growing by 9.3 per cent from Dh914.3 billion last year. In 2007 and 2008, the UAE's nominal GDP grew by 22 and 36 per cent respectively, while it declined 11.9 per cent in 2009 in the wake of the global financial crisis.

Estimates

The latest estimate by the Ministry of Economy is that real GDP growth — nominal GDP growth minus inflation — for 2010 will be 2.25 per cent. The International Monetary Fund, meanwhile, has projected that the UAE's GDP will grow by 1.5 per cent this year. Dubai-based investment bank Shuaa Capital recently revised its earlier estimate from 2.5 per cent to 1.8 per cent, citing a weaker than expected recovery.

Al Tayer said the country's economic recovery was gaining pace, with banks and corporates stabilising their balance sheets.

"The capital adequacy ratio of UAE banks is in excess of 20 per cent and the capital set aside for potential loan losses is more than adequate," he said.