UAE. The UAE economy grew by a healthy 7.4% in 2007 on the back of the
economic diversification policies adopted by the UAE leaders which
largly contributed to growth, announced the UAE Economy Minister HE
Sultan bin Saeed Al Mansouri on Sunday.
Speaking on the occasion of the release of the economic performance
report, the Minister said that economic expansion was achieved thanks
to the manufacturing and construction sectors, oil and gas due to
the soaring oil prices, the contruction boom and the inflow of foreign
capitals.
"The oil prices grew by 13.1% in 2007 as average price of barrel
soared to US$69.1, while the non-oil sector grew remarkably, leading to
the hike of gross domestic product (GDP) by 16.5% to AED 698 billion,"
said Al Mansouri
The non oil sectors contributed 65% of GDP or AED455 billion (US$124 billion), according to the report.
The rise in contribution of non-oil sectors to GDP "reflects the
success achieved in the country's economic diversification plan," it
added.
Real GDP growth came in just below the 7.8% growth forecast by 12
economists in a Reuters poll in December. The economy should expand by
another 7.8% this year, the poll showed.
The UAE, the world's fifth-largest oil exporter, has been striving
to diversify its economy away from a dependence on energy exports by
pouring windfall oil revenues into real estate, financial services and
infrastructure.
"Crude oil is a leading industry sector which has contributed 35 %
of the GDP in 2007, followed by the manufacturing sector, whose
diversified activities - whether in oil, liquefied gas, or factories in
free zones - contributed 13% to the GDP achieved in 2007," said the
report.
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