UAE economy up 1.4% in 2010

The UAE gross domestic product grew by around 1.4 per cent in 2010 driven by higher oil prices and expansion in other sectors, official data showed on Sunday.

In current prices, the economy gained nearly Dh100 billion to smash through the Dh1 trillion mark for the first time since the country was established four decades ago.

The country’s nominal GDP surged to Dh1,093 billion in 2010 from Dh992.8 billion in 2009 to maintain its position as the second-largest Arab economy after Saudi Arabia, showed the figures by the National Statistics Centre.

The figures showed real GDP rebounded by around 1.4 per cent after a contraction of 1.6 per cent in 2009 because of lower oil prices and the repercussions of the 2008 global fiscal distress.

The surge in 2010 was a result of a sharp rise in oil prices which swelled to an average $80.1 a barrel in 2010 from $62.5 in 2009.

“Another factor was the expansion in many non-oil sectors…the GDP in the oil sector stood at Dh343.9 billion while the non-oil sector’s contribution stood at around Dh749.2 billion,” the centre said.

The figures showed the expansion in the non-oil economy boosted its contribution to GDP to 69 per cent last year from 66 per cent in 2009.

The report showed an improvement in other economic variables, with the gross capital formation (investments) surging to a record high of around Dh260.2 billion in 2010 from Dh221.3 billion in 2009.

Final consumption grew to about Dh716.5 billion from Dh701.4 billion while exports leaped to Dh851.9 billion from Dh741.7 billion. Imports also grew to Dh751.6 billion from Dh687.3 billion.

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