An increase in oil prices boosted the UAE’s balance of payment (BoP) surplus by more than 100 per cent in 2012 despite a sharp rise in imports and capital outflow by the private sector, according to official data.
Total hydrocarbon exports peaked at around Dh433 billion last year compared with Dh409 billion in 2011 after oil prices hit an all time high of nearly $110 a barrel, showed the figures published in the Central Bank’s annual report released on Tuesday.
The surge boosted the total exports of the second largest Arab economy to a record high of Dh1,285 billion in 2012 from Dh1,109 billion in 2011.
This widened the current account balance to a record high of Dh244.4 billion from Dh187.1 billion despite a surge in imports to nearly Dh814.8 billion from Dh717.7 billion.
As a result, the UAE’s balance of payment recorded one of its highest surpluses of nearly Dh36.6 billion in 2012 compared with Dh16.2 billion in 2011.
The report showed the capital and financial account weighed on the BoP as it recorded a bigger deficit of Dh145.7 billion in 2012 compared with nearly Dh109.1 billion in 2011.
The gap was mainly a result of a sharp rise in private capital outflow to nearly Dh30.7 billion last year compared with an inflow of Dh2.8 billion in 2011.
Capital outflow by the government and other public establishments also widened to Dh115 billion from Dh112 billion.
Also on the negative side, foreign hydrocarbon companies operating on a partnership basis in the UAE were allocated Dh11 billion last year compared with Dh9.5 billion in 2011 due to higher crude production and prices.
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