Dubai fuelled UAE's growth during oil boom: ministry

Dubai's economy soared by more than 21 per cent in real terms during the oil boom of the past seven years to spearhead growth in the UAE and maintain its position as the second largest economy, official figures showed yesterday.

The UAE's real gross domestic product (GDP) grew by an annual average of around 14.8 per cent during 2001-2008, one of highest growth rates in the world, mainly because of high spending triggered by strong oil prices.

The figures by the Ministry of Economy showed Dubai's real GDP jumped by about 21.9 per cent during that period, far above the country's average growth. From about Dh68.13 billion in 2001, Dubai's real GDP expanded to nearly Dh172.7bn in 2008, the Ministry said in a revised economy report.

The Emirate's GDP last year was lower than its level of about Dh173.6bn in 2007 due to a sharp contraction in its real estate sector and a slowdown in trade in the last quarter because of the global financial crisis.

Experts attributed Dubai's high growth during 2001-2008 to big leaps in its construction and real estate sector, as well as a surge in trade, tourism, industry and other sectors that were stoked by high public and private investment.

A breakdown showed Abu Dhabi, which controls the largest economy in the UAE, recorded an average real GDP growth of 13.4 per cent during that period.

Growth was put at 10 per cent in Sharjah, 7.3 per cent in Ajman, 6.6 per cent in Fujeirah, 5.6 per cent in Ras Al Khaimah and 5.4 per cent in Umm Al Quwain.

In current prices, Dubai also recorded the highest growth rate during that period, with its nominal GDP jumping by an annual average of 50.8 per cent, far ahead of the average UAE growth of about 38.1 per cent.

Nominal GDP growth was estimated at 35.7 per cent in Abu Dhabi, 27.8 per cent in Sharjah, 24.7 per cent in Ajman, 23.4 per cent in Fujeirah, 21.7 per cent in Ras Al Khaimah and around 21.1 per cent in Umm Al Quwain.

High real GDP growth allowed Dubai to maintain its position as having the lowest unemployment rate in the UAE despite a steady rise in its population.

The Ministry's report showed the unemployment rate in Dubai at about 2.4 per cent in 2008 against a UAE average of nearly four per cent. Umm Al Quwain also had a lower than average rate of 3.5 per cent while Sharjah exceeded the UAE average with 4.1 per cent. The rate was 4.3 per cent in Abu Dhabi and 6.5 per cent in Ajman, 6.7 per cent in Ras Al Khaimah and seven per cent in Fujairah.

Although expatriates account for nearly 80 per cent of the country's population of 4.7 million, the unemployment rate among them was far lower than in UAE nationals, according to the report.

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