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28 March 2024

UAE non-oil GDP up 4.8% in 2010

Published
By Staff

The UAE’s non-oil economy rebounded by nearly 4.8 per cent in real terms in 2010 after shrinking by around 4.2 per cent in 2009 to offset the contraction in the hydrocarbon sector and allow the country to record positive growth in the overall GDP, according to official data.

From around Dh638.6 billion in 2009, the non-oil sector’s contribution to real GDP swelled to nearly Dh670.5 billion in 2010, showed the figures by the National Bureau of Statistics.

The hydrocarbon sector shrank by about 5.5 per cent in real terms despite a sharp increase in average crude prices last year, the report showed.

It gave no reason for the contraction in the oil sector, which accounts for nearly a third of GDP, but analysts said oil and gas output last year was lower.

Real GDP grew by about 1.4 per cent to a record Dh977.3 billion last year from Dh963.5 billion in 2009 while the hydrocarbon sector dipped by nearly 5.5 per cent to Dh308.5 billion from Dh324.9 billion.

The report showed there was growth in all non-oil sectors in 2010 except the farming sector. The real estate sector, which plunged by nearly Dh22 billion through 2010, rebounded by around Dhthree billion in 2010.

Trade also gained nearly Dhsix billion last year after slumping by around Dh11 billion in 2009 while the construction sector sharply recovered by nearly Dhnine billion last year after edging up by only Dhone billion in 2009.

In current prices, the UAE’s GDP swelled by around 10 per cent to Dh1,093 billion in 2010 from Dh992.8 billion.

A surge in crude prices by nearly $20 last year boosted the hydrocarbon sector by around 19.5 per cent to Dh343.9 billion from Dh287.2 billion in 2009. The nonoil sector also rose by 6.2 per cent to Dh749.1 billion from Dh705.5 billion.

As for GDP components, the report showed gross fixed capital formation (public and private investment) surged to a record Dh260.2 billion in 2010 from around Dh221.5 billion in 2009, indicating high public spending and a recovery in private sector investment after a decline in the previous year.

Investments plunged by around Dh23 billion in 2009 from Dh244 billion in 2008 as a result of a sharp fall in private investment to nearly Dh131.4 billion in 2009 from Dh158.9 billion in 2008. But it rebounded to nearly Dh165.8 billion in 2010.

Public investment was not affected the global fiscal crisis as it grew from around Dh61 billion in 2008 to Dh63.3 billion in 2009 and Dh66.4 billion in 2010.

Government investment also increased from Dh24 billion to Dh26.5 billion and Dh66.4 billion in the same period in line with counter-crisis fiscal expansion.