Abu Dhabi’s oil income up Dh90bn in 2010

Strong oil prices allied with higher crude output to boost Abu Dhabi’s hydrocarbon export income by nearly Dh90 billion in 2010 but the earnings remained far below the record revenue achieved in 2008.

Revised figures by the Abu Dhabi Department of Economic Development (DED) showed the emirate earned nearly Dh278 billion last year compared with around Dh188.8 billion in 2009 and an all time high of Dh337.9 billion in 2008.

The increase boosted Abu Dhabi’s total exports to Dh300.7 billion from around Dh207 billion in 2009, DED said in its 2010 report.

The increase also resulted in a 15.8 per cent growth in nominal GDP to nearly Dh620.3 billion in 2010 from Dh535.3 billion in 2009.

Despite higher imports last year, the surge in oil exports widened Abu Dhabi’s trade surplus to about Dh214 billion from Dh113 billion in 2009. But the 2010 surplus remained way below the record balance of Dh260 billion achieved in 2008, when crude prices hit an all time annual average of around $95.

Oil prices averaged around $75 in 2010 compared with nearly $62 in 2009 while Abu Dhabi’s crude output swelled to nearly 2.255 million bpd from Dh2.189 million bpd in the same period, official data showed.

But gas production declined to around 4,847 million cubic fee per day in 2010 from nearly 5.674 million cubic feet per day in 2009.

Analysts expect Abu Dhabi, which controls over 90 per cent of the UAE’s oil and gas wealth, to bask in its highest ever income this year as its crude output remains high and oil prices could exceed the 2008 average.

Abu Dhabi sits atop the world’s sixth largest proven oil reserves of around 92 billion barrels, nearly seven per cent of the global crude potential. Its gas resources are estimated at around 212 trillion cubic feet, the world’s fifth after the reserves in Russia, Iran, Qatar and Saudi Arabia.

According to the International Monetary Fund (IMF), higher revenue and lower spending allowed Abu Dhabi to cut its fiscal deficit by more than half in 2010.

Expenditure was trimmed from around Dh261.4 billion in 2009 to Dh245.5 billion last year although it remained at one of its highest levels.

The deficit was slashed to nearly Dh57.07 billion from around Dh117.4 billion, the emirate’s largest budget shortfall. The fiscal balance recorded its highest surplus of nearly Dh113 billion in 2008.

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