UAE economy well diversified

In the latest report by the Ministry of Economy, there are two vital facts which deserve to be highlighted because they bode well for the future.

Firstly, the UAE is expected to record economic growth between 2.5 and 3.2 per cent this year, an important signal that the country has shaken off the worst of the effects of the global economic crisis.

Secondly, the economy has been successfully diversified, with the oil sector contributing less than 30 per cent to the country's GDP for the first time. Manufacturing, construction, retail, real estate and government services have all emerged as strong industries that are contributing to economic growth. Small and medium enterprises are now contributing 60 per cent to GDP, across these industries, and the government is determined to help the sector grow faster.

The successful diversification of the economy means that growth in the future will be more resilient and less volatile. As the economy moves away from its reliance on the oil industry, responsibility for consumer and investor confidence and job creation will be spread across more sectors, allowing it to grow in a more stable, sustainable manner. The global economy remains fragile, but the UAE is well positioned to ride out any more turmoil.