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- Dubai 04:26 05:44 12:20 15:47 18:50 20:08
The UAE economy is projected to grow by around 3.7 per cent in 2012 because of strong oil prices and an upturn in the tourism, services and other sectors in Dubai, the country’s minister of economy was reported on Monday as saying.
In the first nine months of 2012, the UAE’s GDP approached Dhone trillion in current prices thanks to high oil prices and nominal growth in other sectors, Sultan Al Mansoori told the London-based Saudi Arabic language daily Sharqalawsat.
“We expect real GDP growth this year to be 3.7 per cent…there has been growth in many sectors, mainly tourism, services and manufacturing, which grew by around three per cent so far this year…trade also expanded by four per cent,” he said.
“These figures clearly show that the UAE economy is moving in the positive direction…a large part of the expansion in those sectors has been witnessed by Dubai, where the real estate sector is also gaining momentum after it was the main cause of the financial crisis suffered by the emirate recently.”
Mansoori said the UAE, the largest Arab economy after Saudi Arabia, has managed to slash inflation from a record high of 14 per cent in 2008 to below one per cent in 2011.
In 2012, inflation will range between one and 1.2 per cent which is “a very low rate,” Mansoori said, adding that the sharp fall in rents was a key factor in curbing inflation.
The UAE real GDP grew by around 4.9 per cent in 2011 when oil prices hit a record high of around $107 and the country pumped oil at one of its highest levels. He price surge boosted the UAE’s income to an all time high of more than $100 billion and allowed the government to raise spending, giving a fresh boost to non-oil sectors.
Recent official Arab estimates showed the UAE’s nominal GDP could gain around $18 billion to climb to a record high of $368 billion in 2012.
The country’s nominal GDP peaked at nearly $358.1 billion in 2011 due to higher crude output and a surge in oil prices, the Kuwaiti-based Inter-Arab Investment Guarantee Corp said, expecting growth in the UAE at 17.8 per cent in current prices this year.
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