The UAE’s industrial sector expanded by nearly 11 per cent in 2011 to maintain its position as second largest component of GDP after the hydrocarbon sector, according to a semi official study.
The high growth was a result of an increase in public and private investment in manufacturing projects and the completion of the first stage of the Abu Dhabi-based Emirates Aluminium project (Emal), said the study by the Dubai- based Emirates Industrial Bank (EIB).
From Dh127.6 billion in 2010, the manufacturing sector’s contribution to the UAE’s overall GDP swelled to an all-time high of Dh141.7 billion in 2011.
“Growth in this sector and other non-hydrocarbon sectors in the UAE last year was a result of an increase in domestic liquidity due to a surge in the country’s oil export earnings,” EIB said in its January economic bulletin.
It said other non-oil sectors recorded high growth last year, including transport, which expanded by six per cent, and the financial sector, with banks recording 11 per cent growth in their profits.
“Trade was also a key growth sector with figures announced by the Ministry of Foreign Trade showing the country’s commercial exchange rising to new record high levels given the UAE’s position as a key trade hub.”
EIB gave no GDP growth figures for this year but cited IMF data as showing the economy has almost completely recovered from the 2008 global fiscal distress and gained pace in 2011 over the previous year.
It showed the UAE’s GDP in current prices soared to an all time high of around Dh1.3 trillion to retain its status as the largest Arab economy after Saudi Arabia.
Follow Emirates 24|7 on Google News.