UAE’s economic growth defies global trend

Contrary to the global trend of economic slowdown, UAE posted a significant economic growth. Country’s vital sectors are growing at a substantial pace. The UAE has taken a major step forward in achieving socio-economic developments. A sustainable, diverse and globally competitive economy is the need of the hour. And this is possible only with participation of citizens, who are equipped with the world-class knowledge and innovative skills. And, so the UAE Vision 2021 is the right step forward. To realize this goal efforts are being launched to reach the target within the frame-work of world-class system.
UAE is remained unaffected of relatively low crude prices. The country has shown resilience in the face global economic slowdown and trade and investment instability in some parts of the region. This is the outcome of the UAE’s solid diversification. This has led 77% rise in non-oil sectors’ contribution to GDP in 2015. The strong economic performance is further evident from the government’s spending which reached AED179bn, up 3.8% from 2014 and by 4.5 to 6% compared to levels prior to the emergence of significant oil price fluctuations. The country’s economic diversification plan has contributed to the non-oil sector’s growth and boosted sustainable development in the medium and long term.
HE Eng Al Mansouri, Minister of Economy, said, “the latest statistics and figures show the national economy’s important achievements despite regional and global economic challenges. The UAE’s GDP tripled in the past 10 years, climbing from almost AED 511 billion in 2006 to AED 1.58 trillion in 2015. The figure is expected to reach AED 1.8 trillion by the end of 2016. The growth rate at constant prices reached 3.8 per cent last year compared to 3.1 per cent in 2014.”
The government and private domestic investment are expected to pave the way for significant economic activities in preparation for a post-oil phase. It has already resulted in higher investments in various sectors and development projects. The investments have leapt from AED 337 billion in 2014 to about AED 354.4 billion in 2015. The share of government investments reached AED 145.8 billion. It is 8 per cent up from the previous year. The private sector’s contribution to gross domestic investment increased by 3.3 per cent from AED 201.9 billion in 2014 to AED 208.6 billion in 2015.
Also, the UAE holds prestigious position in foreign trade. It should capitalize regional and international import. Though the state’s foreign non-oil trade volume stood at AED 1.75 trillion in 2015, there is ample room to improve this figure by leveraging on this sector.
The industrial sector has driven the national economy and supported local prosperity and sustainable development. The investment volume in the Transformative industries sector reached AED 130 billion. Data shows that the industrial sector has posted a significant growth despite the economic challenges. And the growing number of industrial facilities will contribute to the national economy.
Food and beverages led the other industrial sectors in terms of size of investment at AED 40 billion.
SMEs sector counts among the main priorities of the state due to its vital role in promoting sustained growth, economic diversification, and the transformation to an innovative knowledge-based economy in line with UAE Vision 2021.
UAE established Council of Projects and Small and Medium-sized Enterprises in 2015 to coordinate nationwide efforts to develop the sector and adopt a unified definition of SMEs in order to provide the necessary facilities and support. This includes sourcing 10 percent of the products and services purchased by federal authorities from domestic SMEs, as well as financing facilities, employment, and consultancy, among others.
There is a need for thrust on SMEs. Already, the SMEs account for more than 60 per cent of the national GDP. The country aims to bring this figure up further to 70 per cent in 2021. This will put the economic growth on the right path.