UAE economy has achieved tremendous growth
The UAE's ability to create modern and sophisticated infrastructure had played an important role in enhancing productivity, and had prompted remarkable accomplishments in the areas of social services", said UAE Minister of Economy Sheikha Lubna Al Qasimi.
"The results are tremendous and reflect the huge efforts that have been made to create a balanced economic base through the creation of an investment map that promotes the development of various sectors in the UAE", the Minister said in a statement following the release of 'Economic and Social Annual Report 2006'.
According to the MoE's recent report which shows strong economic performance as well as an unprecedented fiscal growth, the UAE economy is one of the most open and integrated Arab economies within the global market, and is the second largest economy within the GCC states.
"The economic policies of the UAE are based on the dynamics of a free economy and the need to further diversify our income resources; which we believe could be achieved through a transition that focuses on strengthening our industrial, agricultural and production bases," Sheikha Lubna said.
Further private investments, she added, would be encouraged in the areas of industry, trade, services and further legislations will be likely adopted to develop income in the non-oil sector and encourage continuous benefits from the free zone areas in the UAE.
According to the comprehensive report, the UAE maintained its financial strength during 2006, as the budget witnessed a surplus of (AED) 72.5 billion, representing an increase of 83.5 per cent over 2005. The strong economic performance was attributed to significant developments in the oil sector, as well as an expansion in various sectors, especially industry, trade, construction and real estate services.
A comparative increase in investment inflows into the country was credited to favorable investment conditions, such as political, legislative stability, security and the UAE's strategic geographical location.
The report also revealed that despite concrete efforts to develop a non oil-based economy, the oil sector in the UAE was still a major economic contributor, with average oil production in the UAE increasing to reach 2.6 million barrels a day during 2006, at an average price per barrel of USD 63. As a result of the increasing oil production and strong non-oil sector performance, the country's Gross Domestic Product (GPD) increased to reach AED 599 billion at a growth rate of 23.5 per cent.
The investment climate in the UAE also remains strong, with the report noting that the harmony of government policies with the efforts of the private sector has helped the UAE become a destination for major global companies. Favorable government policies have boosted private sector investments to reach 59.3 per cent of the total investments made during 2006, which included housing, tourism, hotel projects and other services. This strong economic activity and the ongoing movement of capital to the UAE resulted in an increase of overall liquidity from AED 415 billion in 2005 to AED 507 billion in 2006.
Inflation during the period was attributed to the rise of rents and the increasing prices of fuel and construction materials; reached 6.2% and 9.3% respectively in addition to the decrease in the dollar exchange rate and its impact on the prices of imports from the country of origin.
The UAE's trade balance achieved a surplus of AED 164 billion, compared with AED 120 million in 2005; whereas exports also increased from AED 430 billion in 2005 to AED 523 billion in 2006 - of which the crude oil exports represent approximately 41 per cent of the 2006 total.
The banking sector continues to play an important role in financing many projects, especially in the trade and construction sectors; as the total credit of the various economic sectors reached AED 474 billion, compared with AED 353 billion in 2005.
"There is no doubt that our great challenge on policy levels is to maintain and accelerate the pace of growth in order to achieve a noticeable result in the maintenance of high standards of living and to meet the global economic changes. The issue of native manpower is also considered as one of the most important issues for sustained economic development at present and in the future", Lubna added.
The concept of development is no longer only limited to economic growth, as any measure of development must also include comprehensive social, cultural and political goals. The UAE Government has made the concept of development at the heart of its concerns, which is why such efforts are being made to provide educational, healthcare and social welfare services, and to enforce services that contribute to the safety and stability of society.
"For this reason, we plan to work closely with other UAE Government departments to focus on developing a set of integrated and balanced services to ensure the intellectual, physical and spiritual care of citizens", she concluded. Source
"The results are tremendous and reflect the huge efforts that have been made to create a balanced economic base through the creation of an investment map that promotes the development of various sectors in the UAE", the Minister said in a statement following the release of 'Economic and Social Annual Report 2006'.
According to the MoE's recent report which shows strong economic performance as well as an unprecedented fiscal growth, the UAE economy is one of the most open and integrated Arab economies within the global market, and is the second largest economy within the GCC states.
"The economic policies of the UAE are based on the dynamics of a free economy and the need to further diversify our income resources; which we believe could be achieved through a transition that focuses on strengthening our industrial, agricultural and production bases," Sheikha Lubna said.
Further private investments, she added, would be encouraged in the areas of industry, trade, services and further legislations will be likely adopted to develop income in the non-oil sector and encourage continuous benefits from the free zone areas in the UAE.
According to the comprehensive report, the UAE maintained its financial strength during 2006, as the budget witnessed a surplus of (AED) 72.5 billion, representing an increase of 83.5 per cent over 2005. The strong economic performance was attributed to significant developments in the oil sector, as well as an expansion in various sectors, especially industry, trade, construction and real estate services.
A comparative increase in investment inflows into the country was credited to favorable investment conditions, such as political, legislative stability, security and the UAE's strategic geographical location.
The report also revealed that despite concrete efforts to develop a non oil-based economy, the oil sector in the UAE was still a major economic contributor, with average oil production in the UAE increasing to reach 2.6 million barrels a day during 2006, at an average price per barrel of USD 63. As a result of the increasing oil production and strong non-oil sector performance, the country's Gross Domestic Product (GPD) increased to reach AED 599 billion at a growth rate of 23.5 per cent.
The investment climate in the UAE also remains strong, with the report noting that the harmony of government policies with the efforts of the private sector has helped the UAE become a destination for major global companies. Favorable government policies have boosted private sector investments to reach 59.3 per cent of the total investments made during 2006, which included housing, tourism, hotel projects and other services. This strong economic activity and the ongoing movement of capital to the UAE resulted in an increase of overall liquidity from AED 415 billion in 2005 to AED 507 billion in 2006.
Inflation during the period was attributed to the rise of rents and the increasing prices of fuel and construction materials; reached 6.2% and 9.3% respectively in addition to the decrease in the dollar exchange rate and its impact on the prices of imports from the country of origin.
The UAE's trade balance achieved a surplus of AED 164 billion, compared with AED 120 million in 2005; whereas exports also increased from AED 430 billion in 2005 to AED 523 billion in 2006 - of which the crude oil exports represent approximately 41 per cent of the 2006 total.
The banking sector continues to play an important role in financing many projects, especially in the trade and construction sectors; as the total credit of the various economic sectors reached AED 474 billion, compared with AED 353 billion in 2005.
"There is no doubt that our great challenge on policy levels is to maintain and accelerate the pace of growth in order to achieve a noticeable result in the maintenance of high standards of living and to meet the global economic changes. The issue of native manpower is also considered as one of the most important issues for sustained economic development at present and in the future", Lubna added.
The concept of development is no longer only limited to economic growth, as any measure of development must also include comprehensive social, cultural and political goals. The UAE Government has made the concept of development at the heart of its concerns, which is why such efforts are being made to provide educational, healthcare and social welfare services, and to enforce services that contribute to the safety and stability of society.
"For this reason, we plan to work closely with other UAE Government departments to focus on developing a set of integrated and balanced services to ensure the intellectual, physical and spiritual care of citizens", she concluded. Source
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