UAE population increases sharply

The UAE's population has nearly quadrupled over the past 25 years, but the sharp increase was coupled with high growth in its economy and income.

Official statistics showed the UAE has not suffered from a serious unemployment problem while its per capita income has even climbed, although growth in the country's population has been one of the highest in the world.

From around 1.04 million at the beginning of 1980, the UAE's population surged to nearly 4.041 million at the end of 2003 and is projected to exceed 4.3 million at the end of this year, according to estimates by the Ministry of Planning and the Central Bank.

Growth during that period was estimated at 7.6 per cent and experts attributed the rapid increase to a massive influx of foreign labour and the high birth rate among nationals.

The average growth rate stood at around 6.4 per cent between 1980 and 1985 while it picked up to 7.7 per cent from 1986 to 1995 and 8.8 per cent from 1996 to 2003.

"I believe it is one of the highest population growth rates in the world, if not the highest," said an Abu Dhabi-based social and economic expert.

"There are several factors that have contributed to this high population growth. They include the high birth rate among nationals, a rapid increase in the number of foreign residents and a continuous influx of expatriate workers."

Unlike in many other Arab oil producing countries, where business opportunities have slackened, the flow of foreign labour into the UAE has remained high because of a business upturn caused by higher oil production and expansion in other sectors.

Figures by the Ministry of Labour and Social Affairs showed at least 100,000 visas have been processed every year over the past decade, an indication the pace of expatriate immigration into the UAE has not abated. Despite the introduction of curbs on expatriate labour, the UAE has remained among the most flexible Middle Eastern countries regarding the employment of foreigners.

"The people in the UAE are increasing by at least 300,000 every year. This is a very high number considering the country's relatively low population," the expert said. "I don't see any slow down as the birth rate among the indigenous population is high given the numerous social incentives offered by the government for local families."

Statistics by the ministry of planning showed the UAE has one of the highest fertility rates in the world, standing at around 6.5 per cent during the 1980s before slipping to four per cent last year.

The figures showed a total 59,500 babies were born in the UAE last year, including around 26,4000 nationals. The total figure involved 30,300 males and 29,200 females.

Despite that sharp rise in the population, the UAE has become even wealthier, with its per capita income growing from around $16,500 in 1980 to $19,700 last year.

The reason for the higher per capita income is because the country's gross domestic product has raced at a higher rate because of a surge in the UAE's oil and gas production and a steady expansion in the non-oil sectors.

GROWTH

Year Population

1970 248,000
1975 557,887
1980 1,042,099
1985 1,379,303
1990 1,773,000
1995 2,411,041
2000 3,247,000
2001 3,488,000
2002 3,754,000
2003 4,041,000

- Source: Ministry of Planning