UAE GDP up Dh201bn in 2011

Strong oil prices allied with high crude output to boost the UAE’s economy by a whopping Dh201 billion in current prices in 2011 to maintain its position as the second largest Arab economy after Saudi Arabia, according to official data.

The increase, the second largest after the record 2008 rise, was a result of a sharp rise in the hydrocarbon sector and growth in all other sectors, except real estate and business services, showed the figures by the national bureau of statistics.

From around Dh1,042 billion in 2010, the country’s GDP jumped to an all time high of nearly Dh1,243 billion in current prices in 2011, the bureau said in a report.

It was the second annual nominal GDP increase in the UAE history since the record growth of about Dh207 billion in 2008, when oil prices rocketed by more than 50 per cent to an average $95 a barrel.

The report showed most of the 2011 GDP growth was in the oil and gas sector, which leaped by about Dh153 billion to Dh477.3 billion from
Dh322.3 billion in 2010.

All other sectors recorded increase except the real estate and business services sector, which slipped to around Dh110.2 billion from
Dh11 billion.

The decline followed an increase of around Dhtwo billion in 2010 and a sharp fall of nearly Dh16 billion in 2007 from a record high of
Dh125.7 billion in 2008, when rents soared to one of their highest rates and the sector was in full swing before it tumbled due to the
2008 global financial distress.

Analysts said the decline last year in the real estate sector was mainly due to lower rents, slower activity and a drop in construction costs.

A breakdown showed the wholesale and retail sector gained around Dheight billion to reach Dh146.4 billion in 2011 compared with Dh138.4 billion in 2010. The increase allowed the sector to retain its status as the second largest component of the UAE’s GDP after the oil sector, accounting for nearly 11.8 per cent.

The construction sector, the third largest after oil and trade, swelled to around Dh131.2 billion in 2011 from Dh120.5 billion while the transport, storage and communications sector grew to Dh99 billion from Dh90.9 billion.

Another sector recording high growth was the manufacturing sector, with its contribution to GDP surging to Dh99.5 billion from Dh92.2 billion.

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