UAE GDP to gain over $11bn

The UAE’s nominal GDP is expected to gain more than $11 billion in 2013 to peak at an all-time high before hitting another record of more than $400bn for the first time in 2014, according to a Saudi bank.

Real GDP is also projected to perform well through those years, with growth of about 3.5 per cent in 2013 and 3.4 per cent in 2014, the Saudi American Bank group (Samba) said in its quarterly bulletin.

Real growth will be driven mainly by expansion in the non-hydrocarbon sector as the oil sector is forecast to slow down in 2013-2014 because of lower crude prices and stable production by the country, Samba said.

From around $377bn (Dh1.38 trillion) in 2013, the UAE’s GDP in current prices is projected to swell to nearly $389.8bn (Dh1.43trn)  in 2013 before peaking at $412.8bn (Dh1.51trn) in 2014, surpassing the $400bn mark for the first time since the country was founded 42 years ago.

GDP in current prices is projected to maintain its upward trend and hit another peak of $441.4bn in 2015, the report showed.

It put real GDP growth at 3.5 per cent in 2013 and 3.4 per cent through 2014-2015 and said the increase would be stoked mainly by growth in the non-oil sector.

The report showed growth in the non-oil sector would pick up to 4.5 per cent this year from 3.8 per cent in 2012 before slightly dipping to 4.4 per cent in 2014-2015.

Oil sector growth was forecast to tumble to 1.6 per cent in 2013 from 5.2 per cent in 2012 mainly because of lower prices and output. The report expected the oil-sector to slow down further to 1.3 per cent in 2014-2015.

It showed high oil export earnings would allow the UAE to maintain high fiscal surpluses, with the current account reaching 14.7 per cent of GDP in 2013, nearly11.6 per cent in 2014 and 9.1 per cent in 2015.

The budget will also record another high surplus of around 6.6 per cent of GDP this year before falling to 5.7 per cent in 2014 and 3.6 per cent in 2015.


 

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