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Introduction:
A close look at the course of economic development in the United Arab Emirates
(UAE) yields an unquestionable fact that relevant achievements have not been the
outcome of plentiful sources of nancing only, but also determination, strong will
and good governance in terms of channeling sources into appropriate objectives.
Over the last few decades, the national economy has been capable of achieving
positive growth rates thanks to world-class infrastructure, exible economic legis-
lations and investment-friendly environment. Further, the national economy has
managed to move gradually from an oil-based economy to a diversied one where
non-oil manufacturing and service sectors account now for more than two thirds of
the Gross Domestic Product (GDP); a fact that is reected in the luxurious stan-
dards of living enjoyed by UAE nationals whosecountry makes a top rank on world
Welfare list.
Today, we are about to embark on a new race for excellence and creativity which
require collectively concerted efforts and good channeling of nancial and human
resources available into building a knowledge-based competitive economy built on
investment in national human resources, attraction of excellent talents, develop-
ment of institutional work and the legislative economic infrastructure, enhancement
of public-private partnership and achievement of national and international institu-
tion partnerships to attract investment and localize technology since these are the
mainstays for a more competitive ability of the UAE to ensure sustainable develop-
ment.
Having proven its ability to address crises and respond positively to all interna-
tional and regional variables, it is expected for the national economy to keep stable
and win more growth rates and momentum.
The present Report sheds light on developments of the national economy over
2010, and provides researchers and specialists with information on macro-achieve-
ments realized in UAE economy to which we hopefully will add to ensure more
progress and welfare.
May God help all of us to achieve prosperity and progress for the UAE
Eng. Sultan bin Saeed Al MansouriMinister of Economy
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Table of Contents
Page No.
Firstly:World Economic Developments 9
Secondly:GCC Economic Developments 10
Thirdly:UAE Economic Developments 12
1. Economic Growth 12
2. Donestic Investments 19
3. Ination 23
4. Public Finance 36
5. Financial Institutions 26
6. Foreign Trade 29
7. Foreign Direct Investment (FDI) 32
8. Population and Labor Force 34
Fourthly: Economic Issues 36
Knowledge Economy 36
Fifthly:Economic Predictions 39
Sixthly:Statistical Appendix 40 51
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List of Figures
Page No.
1. Share of Oil and Non-Oil Sectors in Real GDP Growth (2009-2010) 13
2. Share of Economic Activities in Real GDP Growth (2009-2010) 17 29
3.
Share of Final Consumption, and Total Investments, and Net ExternalDemand in Real GDP Growth (2009-2010)18
4. Breakdown of Total Investments (at Current Prices) by Economic Sec-
tors (2009-2010)20
5. Breakdown of Total Investments (at Current Prices) by Economic Activi-
ties in (2009-2010)22
6. Share of CPI Groups in Overall Ination Rate (2009-2010) 24
7. Share of Oil Revenues in Total Public Revenues (2008-2010) 26
8. Foreign Trade Developments (2009-2010) 31
9. Percentage Breakdown of FDI by Economic Activity - 2010 33
List of Table
Page No.
1. World Economic Growth Rates 9
2. GCC Countries Real Economic Growth Rates 11
3. Share of Oil and Non-Oil Sectors in Real GDP (2009-2010) 12
4. Share of Oil and Non-Oil Sectors in Real GDP Growth (2009-2010) 13
5. Economic Activities Contribution to Real GDP (2009-2010) 14
6. Share of Economic Activities in Real GDP Growth (2009-2010) 16
7. Share of Demand Components in Real GDP Growth 18
8. Total Resources and Uses in Constant Prices (2009-2010) 19
9. Gross Fixed Capital Formation by Economic Activities in
Current Prices (2009-2010)20
10. Share of Economic Sectors in Gross Fixed Capital Formation 21
11. Share of CPI Groups in Overall Ination Rate (2009-2010) 23
12. Consolidated Fiscal Balance of the Federal Government
(2009-2010)25
13. Monetary Developments (2009-2010) 27
14. Banking Developments (2009-2010) 28
15. Financial Market Developments (2009-2010) 28
16. Foreign Trade (Goods and Services), 2009-2010
17. Merchandise Foreign Trade Developments (2009-2010) 3018. Non- Oil Foreign Trade Developments (2009-2010) 32
19. FDI Flows (2009-2010) 33
20. UAE Population by Gender (2009-2010) 34
21. UAE Labor Force Key Indicators by Gender (2009-2010) 35
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Firstly -World Economic Developments:
The world economy has achieved a 5.1 % growth rate in 2010, compared to 0.5 %
in 2009. Economic performance indices have improved in advanced countries, par-
ticularly Germany, France, Japan and the United States. Emerging and developing
economies have been in likewise as capitals poured into them.
Table 1
World Economic Growth Rates
%
2009 2010
World GDP - 0.5 5.1
Advanced Countries - 3.4 3.0
Emerging and Developing Countries 2.8 7.4
Source: World Economic Outlook, June, 2011 - IMF
Asian emerging countries, China and India, led the economic recovery trend over
2010 with a growth rate of nearly 10.3 % and 10.4% respectively. Emerging indus-
trial Asian countries have achieved high growth rate of 8.4 %. Further, the Associa-
tion of Southeast Asian Nations (ASEAN) achieved a positive growth rate of 6.9 %.
Economic recovery over 2010 has been in line with 12 % increasing world com-
modity and services trade volumes after an 11 % decline in 2009. The said increase
covered all economies; i.e., advanced, emerging and developing. Advanced coun-
tries export growthhit nearly 12 %, but 12.8 %for emerging countries. Imports byadvanced countries reached nearly 11.6 %, but 12.3 % by emerging countries.
Ination rates over 2010 have been on the rise across all advanced economies
save Japan which had negative ination rates. US ination rate went up to 1.6 %
over 2010 compared to -0.3% over 2009. Ination rate in the Euro Zone moved
from 0.3 % to 1.6 %, however.
In 2010, current accounts improved world wide after massive decline in 2009 due
to slowing world trade and effects of the world nancial crisis.
According to IMF estimates, Current Account Balance for all world countries have
Statistical Appendix
Page No.
1. UAE Key Economic Variables 41
2. GDP (at current Prices) by Economic Activity 42
3. GDP (at 2007 Prices) by Economic Activity 43
4. GDP Structure (at 2007 Prices) by Economic Activity 44
5.Gross Fixed Capital Formation 45
6. GDP Growth (at 2007 Prices) by Economic Activity 46
7. GDP Growth (at current Prices) by Economic Activity 47
8. GDP (at current Prices) by Expenditure 48
9. GDP (at 2007 Prices) by Expenditure 49
10. GDP (at 2007 Prices) by Economic Sector 50
11. GDP Growth (at current Prices) by Expenditure 51
12. GDP Growth (at 2007 Prices) by Expenditure 52
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Table 2
GCC Countries Real Economic Growth Rates (2009 2010)
%
Country 2009 2010
Qatar 8.6 16.3
Saudi Arabia 0.6 3.7
Bahrain 3.1 4.1
Kuwait - 5.2 2.0
Oman 1.1 4.2
UAE - 1.6 1.4
Source: World Economic Outlook, June, 2011 IMF, National Bureau Satistics
Most GCC countries achieved positive growth rates in 2010 compared to negative
or moderate rates (save Qatar and Bahrain) of 2009.
Ination rates in most GCC countries moved down in 2010 to continue their down
trend that started in 2009 because of the world nancial crisis. In the UAE, the in-
ation rate moved to 0.9 % from 2009s 1.6 %, from 3.5 % to 3.2 % in Oman, from
4.1 % to 4.0 % in Kuwait and from 2.8 %to 2.0 % in Bahrain. Yet, in Saudi Arabia, it
moved up from 5.1 % to 5.4 % and in Qatar from (16.3 %) to (2.4 %).
2010 experienced a big improvement in GCC countries thanks to increasing oil
exports backed up by rising oil prices, production and non-oil trading activities. Ac-
cording to IMF estimates, surpluses increased across GCC countries in 2010. As
part percentage of GDP, Kuwaiti moved up to 31.8 % compared to last years 26.1
%, in Qatar to 18.7 % f rom 10.2 %, in Saudi Arabia to 8.7 % from 6.1 % and in theUAE to 7.7 % f rom 3.0 %. In Bahrain and Oman, however, balance-of-trade surplus
moved up to 4.16 and 11.6 % from 2.9 % and 0.6 % of the GDP, respectively.
moved up to 282.6 billion in 2010 compared to 225.5 billion in 2009. In advanced
countries, current account balance decit moved back to 95.5 billion from 101.1
billion last year. The same held true for the EU where the decit backed from 39.6
billion to 22.3 billion; i.e., by 43.7 %. current account balance surplus for emerging
and developing countries moved up from 326.6 to 378.1 billion.
World unemployment rates featured high levels in 2010 across most advanced
economies. In the United States, for example, unemployment rate moved up from
2009s 9.3 % to 9.6 % in 2010. Similarly, the Euro Zones unemployment rates hit
10 % compared to 9.5 % in 2009; a clear reection of corresponding high unem-
ployment rates in some EU countries.
Secondly:GCC Economic Developments
Arab economies improved signicantly over 2010 compared to the signicant 2009
decline. Yet, performance of these economies varied according to how related or
involved they have been with the world economy which accounted for how badly
affected by the nancial crisis they came to be. Other varying factors included
economic procedures and policies taken by respective governments to protect eco-
nomic activities, and how much nancial surpluses and safe investments these
economies had.
For GCC countries, Real Growth Rate moved up to 5 % in 2010 compared to 0.2 %
in 2009. Increasing public revenues, triggered by rising crude oil prices over 2010
thanks to increasing demand from Asia which experiences high growth rates, con-
tributed to economic recovery and enhanced growth in non-oil sector, thus getting
over ramications and negative impacts of the world nancial crisis.
GCC countries production capacities amounted to 15 million barrels in 2010. GCC
countries expenditure on projects hit $ 1.3 trillion, covering several sectors such as
oil, gas, transport, construction, industry, electricity, water desalination, roads and
infrastructure.
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As for growth rates in each respective sector, the non-oil sectors achieved a 5 %
growth rate in 2010 compared to (-4.2) Percentage Point in 2009, thus taking their
Real Domestic Product contributions up to 3.3 Percentage Point (compared to
(-2.8) Percentage Point in 2009). In turn, the oil sector achieved a negative growth
rate of 5.6 % compared to 2009s 3.9 %, with a clear reection to its 1.9 Percentage
Point negative contribution to the Real GDP as explained in Table 4 and Figure 1.
Table 4
Share of Oil and Non - Oil Sectors
in Real GDP Growth (2009 2010)
ItemAnnual Growth Rate ( %)
Contribution to Annual
GDP (Percentage Point)
2009 2010 2009 2010
Real Growth Rate: - 1.6 1.4 - 1.6 1.4
- Non-oil sectors - 4.2 5.0 - 2.8 3.3
- Oil sector 3.9 - 5.6 1.2 - 1.9
Source: Ministry of Economy UAE
Figure 1
Share of Oil and Non - Oil Sectors
in Real GDP Growth (2009 2010)
Thirdly: UAE Economic Developments
1. Economic Growth
UAE economy is one of the largest emerging economies in the region as it ranks
second to the Saudi economy.
Despite the economic crisis, which is still casting shadows on most economies
worldwide, UAE economy has been gradually recovering as reected in 2010
growth rates, with a Real Domestic Product of 1.4 % compared to a negative 1.6
% in 2009, i.e., realizing a AED 977.3 billion Real Domestic Product compared to
2009s AED 963.5. on the supply side wise, the said growth has been propelled
mainly by higher growth achieved by non-oil sectors, with their GDP moving from2009s AED 638.6 billion (66.3 % of the GDP) to 2010s 670.5 billion (68.6 % of the
GDP), compared to the oil sector which amounted to AED 306.8 billion (31.4 % of
the GDP in 2010) and AED 324.9 billion in 2009 (33.7 % of the GDP) as pointed
out in Table 3 below.
Table 3
Share of Oil / Non - Oil Sectors in Real GDP (2009 2010)
AED Billion
Item 2009 2010
GDP: 963.5 977.3
Non-oil sector GDP - 638.6 670.5
Oil sector GDP - 324.9 306.8
Non-oil sector share in
GDP66.3 % 68.6%
Oil sector share in GDP 33.7 % 31.4%
Source: NBS, Ministry of Economy UAE
Oil Sector Contribution toReal Domestic Product
Non-oil Sectors Contributionto Real Domestic Product
( Percentage Point )
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Table 5
Economic Activities Contribution
to Real GDP Growth (2009 2010)
Economic Activity2009 * 2010 * *
Value % Value %
Social and personal services 20483 2.1 22580 2.3
Financial project sector 64608 6.7 64980 6.6
Gov. service sector 41937 4.4 43361 4.4
Household services 3868 0.4 3555 0.4
Minus: banking services calculated 42017 4.4 42092 4.3Total Commodity & service activities 963530 100.0 977329 100.0
Source: National Bureau Statistics
* Preliminary * * Estimates
On the Supply Side, the key sectors in terms of positive contributions to higher
economic growth rate are construction, which achieved a 8.6% growth rate com-
pared to 2009s 1.3% with a total Real Domestic Product contribution of 0.9 Per-
centage Point compared to 0.1 Percentage Point in 2009, followed by the whole
& retail trade and maintenance service sector, which grew by 4.8 % compared to
a negative 8.4% in 2009 with a 0.6 Real Domestic Product contribution compared
to a negative 1.2 Percentage Point in 2009, then by transport, warehousing and
communications sector, which achieved 4.3 Percentage Point rate compared to
2009s 2.8% with total contribution of 0.4 Percentage Point compared to 2009s
0.2 Percentage Point, and nally by the manufacturing sector which made a 0.3
Percentage Point contribution to Real Domestic Product compared to 2009s -0.4
Percentage Point.
For the electricity, gas and water sector, it achieved an 11.1% growth with a total
Real Domestic Product contribution of 0.3 Percentage Point, while the contribu-
tions of the restaurant and hotel, the real estate &business services and the social
&personal services sectors to GDP were restricted to 0.2 Percentage Point per
sector. Yet, the governmental services sector achieved 0.1 Percentage Point only.
Contribution of crude oil and natural gas was negative, specically 1.9 Percent-
age Point. Nor did the agriculture, animal and sh resources, the nancial projects
and the household services sectors make any signicant contributions to the Real
Domestic Product (i.e., almost zero).
Considering the relative importance of economic activities, such activities have
not changed materially in 2010 compared to 2009. Commodity Activities Groups
witnessed a limited decline in 2010 to 56.3 % from 2009s 57.5% as reecting the
tiny decline in the oil sector (31.4% compared to 33.7%). These include higher con-
tributions by construction, manufacturing, electricity, water and gas to 2010 GDP by
11.8 %, 9.6% and 2.6 % respectively compared to 11.0%, 11.0 and 2.3 % in 2009.
For their part, the Service Activities Groups contributed with higher rates to the
GDP in 2010 by 43.7% compared to 2009s 42.5 %. Excluding the nancial proj-
ects, shares of other service activities in GDP moved up in 2010 compared to 2009,
while the shares of the service & governmental and household service activities
remained the same in terms of GDP contribution in 2010 compared to 2009.
Table 5
Economic Activities Contribution
to Real GDP Growth (2009 2010)
Economic Activity2009 * 2010 * *
Value % Value %
Total Commodity Activities: 553719 57.5 550126 56.3
Agriculture, animal & sh re-
sources8177 0.8 7834 0.8
Crude oil and natural gas 324930 33.7 306808 31.4
Quarries 1643 0.2 1780 0.2
Manufacturing 90680 9.4 93459 9.6
Electricity, gas and water 22440 2.3 25324 2.6
Construction 105850 11.0 114921 11.8
Total Service Activities: 409811 42.5 427202 43.7
Whole / retail trade & mainte-
nance services124270 12.9 130194 13.3
Restaurants and hotels 15962 1.7 17667 1.8
Transport, warehousing and com-
munications87994 9.1 91816 9.4
Real estate and business ser-
vices92705 9.6 95141 9.7
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Figure 2
Share of Economic Activities
in Real GDP Growth (2009 2010)
Percentage Point
On the demand-side, data indicate better economic performance in 2010; a trend
mainly ascribed to higher total investment contribution inclusive of variation in stock
which amount, at 2007 prices, to AED 255.5 billion with growth rate of 15.0 %
compared to a 5.6 % decline in 2009. Thus, this contribution to GDP rose to 2.2
Percentage Point compared to a negative contribution of 1.4 Percentage Point in
2009. However, contribution of nal consumption (public and private) to the nega-
tive growth rate amounted to 1.2 Percentage Point, and the same held true for net
exports the negative contribution of which hit 0.7 Percentage Point.
Table 6
Share of Economic Activities
in Real GDP Growth (2009 2010)
Economic Activity
Sector Growth
Average
Contribution to RealDomestic Product(Percentage Point)
2009 2010 2009 2010
Total Commodity Activities: 2.2 - 0.6 1.2 - 0.4
Agriculture, animal & sh resources - 0.8 - 4.2 0.0 0.0Crude oil and natural gas 3.9 - 5.6 1.2 - 1.9
Quarries 0.9 8.3 0.0 0.0
Manufacturing - 3.8 3.1 - 0.4 0.3
Electricity, gas and water 11.1 12.9 0.2 0.3
Construction 1.3 8.6 0.1 0.9
Total Service Activities: - 6.4 4.2 - 2.8 1.8
Whole / retail trade & maintenance services - 8.4 4.8 - 1.2 0.6
Restaurants and hotels - 12.8 10.7 - 0.2 0.2
Transport, warehousing
and communications2.8 4.3 0.2 0.4
Real estate and business services - 18.7 2.6 - 2.2 0.2
Social and personal services 5.7 10.2 0.1 0.2
Financial project sector - 6.0 0.6 - 0.4 0.0
Gov. service sector 21.5 3.4 0.8 0.1
Household services - 2.9 - 8.1 0.0 0.0
Minus: banking services calculated - 1.1 0.2 0.0 0.0
Total Commodity & service activities - 1.6 1.4 - 1.6 1.4
Source: Ministry of Economy UAE
Agricultre, animal and sh resources
Whole / retail trade and maintenanceservices
Manufacturing
Real estate and bus.services
Crude oil & natural gas
Restaurants and hotels
Electricity, gas and water
Social and personal services
Quarries
Transport, warehousing and comm.
Cconstruction
Financial project sector
Gov. services sector
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Table 8 indicates total resources and uses over the 2009 2010 period at constant
prices.
Table 8
Total Resources and Uses in Constant Prices (2009 2010)
AED billion
2009 2010
Resources:
GDP 963.5 977.3
Commodity & Service Imports 647.2 695.9Total resources 1610.7 1673.2
Uses:
Final private consumption 590.0 577.7
Final public consumption 78.3 78.4
Total nal consumption 668.3 656.1
Investment expenditure * 222.6 255.4
Commodity & service exports 719.8 761.7
Total uses 1610.7 1673.2
* Including of change stock.
2. Local Investments
One of the major reasons behind economic recovery and progress and more
active markets after the negative impacts of the world nancial crisis is the
expanding local investment expenditure, which grew from 2009s AED 221.3 billion
to 2010s AED 260.2 billion, with a 17.6% growth rate (Table 9, Figure 4 below).According to Table 9, private contribution to total investments moved up to 63.7%
in 2010 compared to 59.4% in 2009, with a total of AED 165.8 billion in 2010 after
2009s AED 131.4 billion and a growth rate of 26.2 %. Yet, this came at the expense
of a declining governmental sector to 10.7%, compared to 12%, and a declining
public sector to 25.6% compared to 28.6% of the total investments.
Table 7
Share of Demand Activities
in Real GDP Growth (2009 2010)
Item
Annual Growth
Rate( %)
Contribution to
Real GDP (Per-
centage Point)
2009 2010 2009 2010
Real Domestic Product Growth - 1.6 1.4 - 1.6 1.4
Local demand - 5.2 2.3 - 5.0 2.1
a. Final Consumption - 5.1 1.8 - - 3.7 - 1.2
Private - 8.5 2.1 - - 5.6 - 1.2
Public 32.1 0.1 1.9 0.01
b. Capital Formation * - 5.6 14.7 - 1.4 3.3
2. Net External Demand 85.0 - 9.4 3.4 - 0.7
a. Commodity and Service Exports - 7.0 5.8 - 5.5 4.3
b. Commodity and Service Imports - 11.9 7.5 - 8.9 5.0
* Including change in stock.
Figure 3
Share of Final Consumption Total Investments
and External Demand in Real GDP Growth (2009 2010)
Investment Final ConsumptionNet exports
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Table 9
Gross Fixed Capital Formation by Economic
Activities in Current Prices (2009 2010)
Item
2009 2010
Growth %Value
Contri-
bution %Value
Contribu-
tion %
Total capital formation 221.3 100 260.2 100 17.6
Governmental sector 26.6 12.0 27.9 10.7 4.9
Public sector 63.3 28.6 66.5 25.6 5.1
Private sector 131.4 59.4 165.8 63.7 26.2
Soure : NA
Figure 4
Breakdown of Total Investment (at Current Prices)
by Economic Sectors (2009 2010)
A close look at the Total- investment division by economic sector activities yields
concentration in non-oil sectors in a clear reection of the economic diversication
policy. These top share Total- investment sectors were headed by governmental
and real estate sectors, followed by the manufacturing, electricity, gas & water, and
transport and communications sectors (see Table 10).
Table 10
Share of Economic Sectors in Gross Fixed Capital Formation
Item
2009 2010
Growth
%Value
Contri-
bution
%
Value
Contri-
bution
%
Agriculture, animal & sh resources 0.9 0.4 1.0 0.4 11.1
Crude oil and natural gas 20.1 9.1 26.1 10.0 29.9
Quarries 0.3 0.1 0.3 0.1 0
Manufacturing 30.3 13.7 36.3 14.0 19.8
Electricity, gas and water 26.4 11.9 33.5 12.9 26.9
Construction 13.8 6.2 16.2 6.2 17.4
Whole / retail trade & maintenance
services10.2 4.6 11.5 4.4 12.7
Restaurants and hotels 3.5 1.6 4.2 1.6 20.0
Transport, warehousing and com-
munications27.4 12.4 31.6 12.1 15.3
Real estate and business services 36.7 16.6 40.3 15.5 9.8
Social and personal services 8.6 3.9 10.7 4.1 24.4
Financial project sector 2.9 1.3 3.2 1.2 10.3
Gov. service sector 40.1 18.1 45.2 17.4 12.7
Total 221.2 100 260.2 11. 17.6
Source: National Bereau Statistics.
Growth Fixed
capital formation
Private sector Public sector Gov. sector
AED billion
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The oil and gas sector seized 10 % of total investments in 2010, reecting thenational trend to increase production capacity in the future with a view to meet-ing international market needs and supporting this sector with technological de-velopments in the elds of exploration and extraction. So, this sector ranked rstbetween economic sectors in terms of investment increase which moved up fromAED 20.1 billion in 2009 to AED 26.1 billion in 2010 with a YoY increase of 29.9 %.
3. Ination
Ination decelerated in 2010 as per the Consumer Price Index to hit 0.9 % com-pared to 2009s 1.6 %; a decline mainly ascribed to lower contribution by the com-munication group (- 0.36) Percentage Point in 2010 compared to 0.2 PercentagePoint in 2009) and the housing group (- 0.12) Percentage Point in 2010 compared
to 0.16 Percentage Point in 2009).
Table 11
Share of CPI Groups in Overall Ination Rate
(2009 2010)
Expenditure Group
Contri-
bution
%
Ination Rate
( %)
Contribution to
Ination (Per-
centage Point)
2009 2010 2009 2010
Food & non-alcoholic beverages 13.9 0.80 4.45 0.12 0.64
Alcoholic beverages and tobacco 0.2 10.66 1.26 0.02 0.00
Clothing and footwear 7.6 - 4.77 - 4.96 - 0.39 - 0.38
Housing, water, electricity & gas 39.3 0.41 - 0.30 0.16 - 0.12
Equipment & housing devices 4.2 6.16 4.67 0.25 0.20
Health services 1.1 - 1.48 - 0.87 - 0.02 - 0.01
Transport services 9.9 4.78 3.38 0.45 0.33
Communications 6.9 3.16 - 5.79 0.20 - 0.36
Recreation and culture 3.1 - 0.80 4.72 - 0.02 0.13
Education 4.0 9.86 8.08 0.38 0.34
Restaurants and hotels 4.4 4.87 0.88 0.24 0.04
Miscellaneous goods & services 5.3 3.23 1.41 0.17 0.08
Ination rate 100 1.56 0.88 1.56 0.88
This came in line with the UAE economic policy objectives that aim at higher con-
tribution of such sectors, particularly the manufacturing sector, to the GDP, better
exportation, and resumption of work in major strategic projects.
The data in the said Table indicate higher shares for the manufacturing, energy,
construction, restaurant and hotel, transport and communication, real estate, and
business services sectors in investments to hit AED 162.2 billion in 2010 compared
to AED 138.1 billion in 2009, thus claiming 62.3 % of the total investments.
Figure 5
Breakdown of Total Investments (at Current Prices)
by Economic Activities in (2009-2010)
So committed to providing the best services, particularly in the education and health
domains as going in line with the federal governments strategic objectives,and to
the knowledge-based economy transformation, the UAE witnessed larger invest-
ments in the governmental sector services that reached AED 45.2 billion in 2010
compared to AED 40.1 billion in 2009, thus bringing up the lead of most investment-
attracting sectors over 2010 with a 17.4 % of total investments. Electricity, gas and
water ranked second in terms of investment attraction between 2009 and 2010 as
amounting to 26.9 % to meet development and population growth needs, followed
by restaurants and hotels by a 20.6 % growth, manufacturing by a 20 % growth,
construction by 17.4 %, and transport, and nally by warehousing and communica-
tions with 15.3 %.
AED billion
Gov.servicessector
Realestate&bus.
services
manufacturing
Electricity,gas&water
Transport,warehous-
ing&comms.
CrudeoilandN.gas
Construction
Whole/retailtrade
andmain.services
Socialandpersonal
services
Restaurantsand
hotels
Financialproject
sector
Agriculture,animal
andshresources
Quarries
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Recreation and culture hit a higher ination rate in 2010 up to 4.72 % compared to
a negative ination of 0.80 % in 2009, thus contributing with 0.13 Percentage Point to
the total ination rate. Education, however, realized a positive ination rate of 8.1 %,
contributing to the total ination rate with 0.34 Percentage Point.
4. Public Finance
The government assumes an effective role in economic trends of all other sec-
tors. Government expenditure volume affects activities across the society. Thus,
the public budget, in terms of both revenues and expenditures, reects the current
economic outlook as regards recession and/or recovery.
Public nance suffered largely from the world nancial crisis and the massive
cutbacks in oil revenues in 2009 compared to recent years. State revenues were
affected accordingly considering the fact that such resource still plays a key role
in the regions economy. Budget decit came to the surface in 2003 after years of
budget surpluses.
Table 12
Consolidated Fiscal Balance of the Federal
Government (2009-2010)
Item 2009 2010 Change ( %)
Total revenues 250.9 315 25.5
Total expenditure 375.6 329 (12.4)
Final decit (124.7) (14) (88.8)
Percentage of Deate to GDP (12.9%) (1.4%) ( - )Source: IMF Report on UAE, May, 2010
In 2010, UAE Consolidated made a signicant improve due to higher oil revenues
by 37.4 %. In turn, public expenditure declined by 12.4 %. Public revenues, how-
ever, rose by 25.5 %. This is reected in the nal budget decit which went down
by 89 % to hit AED 14 billion.
Clothes and Foot wear recorded a negative ination rate of (-4.96%) in 2010compared to 2009s 4.77 %, thus contributing to the declining ination with 0.38Percentage Point. The same held true for communications as hitting a negativeination rate of (-5.79 %) compared to 2009s 3.16 and contributing to the decliningination with 0.36 Percentage Point.
As for the food Group, it witnessed a positive ination of 4.45 % in 2010, contribut-ing with 0.64 Percentage Point to the 2010 ination rate. Alcoholic beverages andtobacco hit an ination rate of 1.25 % in 2010, compared to 2009s 10.66 %.
Ination rate of the equipment and household devices Group moved back to 4.6compared to 2009s 6.16 %, thus contributing less to the ination rate with 0.2 Per-centage Point compared to 0.25 Percentage Point.
Figure 6Share of CPI Groups in Overall Ination Rate (2009-2010)
Health services, by turn, recorded a negative ination rate of 0.87 % in 2010,
compared to 2009s 1.48 %. Transport ination decelerated to 3.38 % compared to
2009s 4.78 %, thus featuring a lesser contribution to the total rate with 0.33 Per-
centage Point, compared to 2009s 0.45 Percentage Point.
Foods & non-alcoholic beverages
Alcoholic beverages & tobacco
Clothes and Foot wear
Housing, water, electricity & gas
Equipment & household devices
Health services
Transport services
Commuications
Entertainment & culture
Education
Restaurants and hotels
Various commodities & services
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/authorities through which the banking sector managed to meet the needs of other
economic sectors; a trend that worked good in realizing positive economic growth
rates in 2010.
The nancial institution sector achieved a 3.4 % growth rate in 2010, with sector-
based demand moving up to AED 74.3 billion compared to AED 71.8 billion in 2009.
It is expected for the same sector to achieve positive results over the years to come
due to higher oil prices and public expenditure. This will boost liquidity at the bank-
ing sector and, subsequently, activities of other sectors.
5.1 Monetary Developments
Money supply (M1) rose by 4.2 % to hit AED 232.9 billion in 2010 compared to
2009s AED 223.5 billion. Further, money supply (M2), which involves quasi money
in addition to M1, rose by 6.2 % from 2009s AED 740 billion to AED 786.4 billion in
2010. Yet, money supply (M3), which represents the total local liquidity as it cover
M2 plus governmental deposits, moved up by 3.9 % to reach AED 985.2 billion
compared to AED 947.8 billion. Liquidity ratio to GDP, however, moved back from
95.5 % in 2009 to 90.1 % in 2010.
Table 13
Monetary Developments (2009 2010)
(AED billion)
Item 2009 2010 Growth Rate
Money supply (M1) 223.5 232.9 4.2
Money supply (M2) 740.6 786.4 6.2
Money supply (M3) 947.8 985.2 3.9
Source: Central Bank of the UAE
5.2 Banking Developments
UAE total commercial bank assets rose by 5.7 % to hit AED 1606 billion by late
2010 compared to 2009s AED 1519 billion. Meanwhile, citizen-driven deposits with
commercial banks rose as well by 6.8 % to AED 1050 billion compared to 2009s
AED 982.6 billion. Bank loans moved up by 1.3 % in 2010 to reach AED 1031.3
billion from 2009s AED 1017.7 billion. Loan to deposit ratio moved back to 0.98 in
2010 compared to 1.04 in 2009; i.e., by a 3.0 % decline. This reects how cautious
the banks still are in their loan policies.
Figure 7
Share of Oil Revenues in Total Public Revenues (2008-2010)
Oil revenues accounted for 75.9 % of the UAEs total public revenues in 2010.
Non-oil revenues, however; i.e., customs, interests, taxes, investment income and
fees, accounted for 24.1 %.UAE is keen on boosting non-oil revenues to avoid de-
pendence of public budget on oil receipts.
If it is normal for public expenditures to Finance with a view to better economic life
during the world nancial crisis, such increase, if progressively regular, would be
reected in budget decit. Hence, the UAE adopted an expenditure rationalization
policy over 2010 while observing better economic activities.
Statistics indicate slashes in public expenditure by 12.4 % compared to 2009.
Save for current expenses (that include salaries and production needs necessaryfor running government activities), which grew by 13.6 %, it is clear that public ex-
penditure structure scaled down in 2010, including foreign aids, loans, grants and
developmental expenses.
5. Financial Institutions
Financial Institutions sector is one of the most sensitive economic sectors to lo-
cal as well as international economic developments as it reects, through mon-
etary policies, the economic activity across all other economic sectors. While this
sector in the UAE managed to be resilient to impacts of crises. This became true
through nancial and monetary policies adopted by the government and monetary
Public revenuesOil revenues
AED billion
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P/E ratio in 2010 (equals share price divided by share prot earned by an investor)
at Abu Dhabi Securities Exchange 12.4 times, but 46.1 times at Dubai Financial
Market.
6. Foreign Trade
6.1 Total Trade Volume
Following a decline in some of these sectors in 2009, foreign trade, at both the
commodity and service levels including oil, gas, free zone exports and service trade
headed by transport, communications, insurance and tourism, realized (atcurrent
prices) a 12 % growth in 2010 as moving up from about AED 1429.0 million to AED
1603.5 million.
Some commodity and service exports rose by nearly 14.9 % to hit AED 851.9 bil-
lion in 2010 compared to 2009s AED 741.7 billion.
However, commodity and service imports moved up as well by 9.4 % due to con-
tinuing positive growth rates of national economy. Accordingly, they moved up from
AED 687.3 billion to approximately 751.6 in 2010. Thus, the commodity and service
balance, which stands for the net current balance, achieved an AED 100 billion
surplus; with a growth rate of 84.4 %.
Table 16
Foreign Trade (Goods and Services), 2009-2010
2009 2010 Growth Rate
Total commodity & service trading 1429.0 1603.5 12.2 %
Commodity & service exports 741.7 851.9 14.9 %
Commodity & service imports 687.3 751.6 9.4 %
Current account balance 54.4 100.3 84.4 %
Source: National Bereau Statistics.
Table 14
Banking Developments (2009 2010)
(AED billion)
2009 2010 Growth Rate
Total assets 1,519.1 1,605.6 5.7
Total deposits 982.6 1,049.6 6.8
Loans 1,017.7 1,031.3 1.3
Loan to deposit ratio 1.04 0.98 3.0 -
Source: Central Bank of the UAE
5.3 Financial Market Developments
Financial markets were the most affected categories by the impact of local and
international economic crises. According to relevant indices, these markets still suf-
fer from the recent nancial crisis as general share price index moved down from
2771.6 in December, 2009 to 2655.3 in December 2010. Similarly, the market value
of tradable shares moved down from AED 404.7 billion in December, 2009 to AED
385.4 billion in December, 2010 with a decline by 4.8 % reecting how cautious
investors came to be.
Table 15
Financial Market Developments (2009 2010)
2009 2010
No. of listed companies 133 128
Stock Market index 2771.6 2655.3
Market capitallization (AED billion) 404.7 385.4
P/E ratio:
Abu Dhabi Securities Market 12.4 12.4
Dubai Financial Market - 46.1
Source: Securities & Commodities Authority
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Figure 8
Foreign Trade Developments (2009 2010)
6.3 Non-oil Commodity Trading
Non-oil commodity activity, excluding trading through free zones, grew by 14.2
% in 2010, with total commodity trading reaching AED 754.4 billion compared to
2009s AED 660.4 billion as Table 18 indicates.
Exports went up as well by 3.27 % to account for 11 % of total commodity trading
for a value of AED 83.1 billion in 2010 compared to 2009s AED 65.3 billion.
Re-exports, by turn, skyrocketed to neatly 25.8 % to hit AED 185.9 billion com-
pared to 2009 AED 147.7 billion, with their contribution to the total foreign trade
amounting to 24.6 %.
Yet, imports rose by 8.5 % in 2010 from AED 447.4 billion to AED485.4 billion, but
with a lower contribution to total trade hitting 64.3 %.
Total exports
Oil & gas exports
Commodity exports
Free zone exports
Re-exports
Total imports
Commodity imports
Free zone imports
Balance of trade
6.2 Commodity Trading
Trading in commodities rose in from 2009s AED 1329.2 billion to AED 1457.4 bil-
lion in 2010, i.e., with a growth rate of 9.6 %.
For exports, which include oil and free zone exports as well as other commodity
exports, they realized a better growth rate of 9.8 % in 2010, with oil accounting for
35.6 % of total exports; free zone exports for 12.7 %, and re-exports for 40.9 % as
claried by Table 17 below.
Table 17
Merchandise Foreign Trade Developments (2009-2010)
2009 2010 Growth Rate Contribution
Total exports & re-exports 704.4 773.7 9.8 % 100.0 %
Oil & gas exports 249.3 275.7 10.6 % 35.6 %
Other commodity exports 65.3 83.1 27.3 % 10.7 %
Free zone exports 96.2 98.3 2.2 % 12.7 %
Re-exports 293.6 316.6 7.8 % 40.9 %
Total imports 62.4.8 683.7 9.4 % 100.0 %
Commodity imports 447.4 485.4 8.5 % 71.0 %
Free zone imports 177.4 198.3 11.8 % 29.0 %
Total commodity trade 1329.2 1457.4 9.6 % 100 %
Balance of trade 79.6 90.0 13.1 %
Sources: UAE Central Bank, Annual Report 2010 NBS, Foreign Trade Statistics 2010.
Imports grew as well by about 9.4 % in the same year, with free zone importsaccounting for nearly 29 % of total imports. So, the balance of trade realized a sur-
plus of AED 90 billion with a growth rate of 13.1 % compared to 2009.
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Table 19
FDI Flows (2009-2010)
(AED billion)
2009 2010 Growth Rate ( %)
GDP 992.8 1093.1 10.1 %
FDI 257.6 280.3 8.8 %
FDI / GDP 25.9 % 25.6 % -
Source: FDI Date, UNCTAD Conference, World Investment Report 2011.
Reviewing FDI division by economic activity, real estate attracted the most part
thereof in 2010 by 28.7 %, followed by nancial brokering and insurance by 20.9 %,construction by 19.3 %, whole and retail trade by 10.1 %, manufacturing, electricityand water then transport, warehousing and communications sectors by 8.0 %, 4.6% and 4.0 % respectively. Explorations, restaurants and hotels, personal servicesand agriculture sectors brought up the rear by 3.0 %, 1.0 %, 0.3 % and 0.1 % re-spectively.
Table 9
Percentage Breakdown of FDI by Economic Activity - 2010
Transport, warehousing& communications
Restaurants, hotelsand cafes
1.0 %
Whole / retail trade
10.1 %
Financial institutions& insurance
ConstructionReal estate &rentals
Electricity & water4.6 %
Personal services
0.3 %
Agriculture, shing &forestry 0.1 %
Explorations3.0 % Manufacturing
8.0 %
Table 18
Non- Oil Foreign Trade Developments (2009-2010)
(AED billion)
2009 2010 Growth Rate
National exports 65.3 83.1 27.3 %
Re-exports * 147.7 185.9 25.8 %
Total exports 231.0 268.9 26.3 %
Imports 447.4 485.4 8.5 %
Total trade 660.4 754.4 14.2 %
Non-oil trade decit - 234.4 - 216.5 - 7.6 %
* Free zone trade excluded
Source: NBS, Foreign Trade Statistics 2010
Lower import growth, compared to exports and re-exports, led to declining trade
decit from AED 234.4 billion to about AED 216.5 billion in 2010, i.e., with a rate
7.6 %.
India, China, US, Germany and Japan kept their positions as the top trading part-
ners. Gold, diamond, cars and communication devices kept their positions as the
leading imports. Gold, ships, metal by-products, sugar, ethylene polymers and min-
eral oils topped exports, while diamond, cars, phones, plane and car spare parts
accounted for key re-exports.
7. Foreign Direct Investment (FDI)
In light of state-driven efforts for a better investment climate and stable, encour-
aging and investment-attractive environments, investment ow witnessed signi-
cant increase as it moved up from AED 275.6 billion in 2009 to AED 280.3 billion in
2009, with a growth rate of 8.8 %.
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Table 21
UAE Labor Force Key Indicators by Gender (2009-2010)
UnemploymentEmployedEconomic Activity
RateType
200920082009200820092008
2.4%2.0%97.6%98.0%88.9%89.4%Male
10.8%12.0%89.2%88.0%42.1%41.8%Female
4.2%4.0%95.8%96.0%72.4%72.6%Total
Source: 2009 Manpower Survey, National Bureau of Statistics
8. Population and Manpower
8.1 Population
According to ofcial estimates, population reached 8.3 million in 2010 compared
to 8.2 million in 2009 with a growth rate of 1.2 % compared to 1.6 % in 2009. UAE
population structure is mainly known for being male-deviated by 75 % to 25 % for
females.
Table 20
UAE Population by Gender (2009-2010)
(Million)
Year
Male Female Total
Number % Number % Number
2009 6.1 74.6 2.1 25.4 8.2
2010 6.1 74.6 2.1 25.4 8.3
Source: NBS
According to ofcial estimations, male expatriates accounted for the largest per-
centage in 2010. Despite slight decline, their percentage hit 68.8 % compared to
68.9 % in 2009, followed by female expatriates who accounted for 19.8 % com-
pared to 19.7 % of the total population in 2009.
8.2 Labor Force
Labor Force 2009 surveys suggest the economically active to account for 72.4 %
in 2009, of whom the employed are 96 % and the jobless 4 %. Males employed are
98 % compared to 89 % among females. Accordingly, unemployment rate among
males is 2 % compared to 11 % for females.
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2. Building up human and institutional capacities concerning information
and communication technology
Owing to the fact that information technology is the operative and supportive
strength for human development, the UAE has been prompted to develop policies
and programs aiming at increasing the impact of information technology on
reforming education and achieving economic and social development. In fullling
that, the state has endeavored to develop education together with furnishing
the schools with computers and expansion in building institutions of higher
education in order to generalize e-learning. Moreover, the state established
several clusters, institutions and institutes for research and technology in order
for encouraging research, creativity and innovation including, but not limited to:
MASDAR City, Mohammed Bin Rashid Technology Park, Dubai Biotechnology& Research Park, Dubai Silicon Oasis Park, Dubai Silicon centre for experience
embracing, technology parks and media zone in Dubai, which includes: Dubai
Internet City, Dubai Media City and Dubai Knowledge Village, Arab science and
Technology Foundation in Sharjah, Technology Centre in Ras Al-Khaimah, Centre
of Excellence for Applied Research and Training that is the commercial branch for
Technology Higher Colleges, institutes and centers for environmental researches
and biotechnology water treatment.
3. Consolidating information and communication infrastructure
Insomuch as infrastructure is the prop of knowledge economy and the basis for
making information and communication technology within reach of all population
as well devoting its use for increasing the ow of information and knowledge,
decreasing the cost of transactions and raising the rates of communications,
productivity and yield, the UAE tended to support and upgrade the technical level
of phone network, other phone services and the networks supporting the internet.
By doing so, the UAE holds one of the most developed infrastructures in the eld
of information technology and becomes able to diversify numbers and levels ofthe services provided, a matter that makes, in turn, the costs to be accessible
to citizens. Additionally, the rate of spread of xed and mobile lines and internet
services continues to rise greatly and the use of personal computers between all
individuals and companies has spread as well.
4. State orientation towards knowledge economy
During the process of transition to knowledge economy, the UAE put so much
effort into adopting a strategy aiming to develop an institutional economic system
capable of improving the productivity of economy and developing the social
structures through setting up sound foundations for a competitive digital economy
feasible for creating an economic activity characterized by high added value.
Fourthly: Economic Issues
Knowledge Economy
Knowledge Economy is dened as the economy that uses knowledge intensively
in the growth cycle. For this economy, knowledge is the essential constituent to
be involved in the process of introduction and the main drive to economic growth.
This is due to the fact that, being based on the information and communication
technology considered as the essential foundation of that type of economy, hence
the more this component is used, the more the growth rates do increase. Unlike
the traditional economy that puts less emphasis on knowledge and where growth
rests heavily on the traditional factors of introduction such as land, manpower and
capital, this economy sees much more valuable the highly skilled human resources.Knowledge economy is also called: information economy, digital economy, new
economy, token economy and post-industrial economy.
Being in its way to achieve the goals of federation strategy and its vision for 2021
as well as changing the economic structure to be in a position of global competition
through structural shifts most notably this one relating to the transformation from
the traditional economy to knowledge economy, the UAE has taken several wide,
positive steps in this regard including:
1. Consolidating the legislative and regulatory structure in the eld of
technology and communications
In view of building up a knowledge-based economy, the UAE has gone a long
way in the enactment of legislations appertaining to strengthening the legal and
regulatory structure in all elds of technology and communications. In this arena,
the state has issued three federal laws on protecting the intellectual property
rights in accordance with the provisions of Agreement on Trade-Related Aspects
of Intellectual Property Rights (TRIPS). Furthermore, it acceded to the treaties,
agreements and conventions on intellectual property together with issuing a lawregulating E-Commerce. Moreover, the Government of Dubai passed numerous
laws relating to the establishment of Technology and Media Free Zone along with
regulating electronic transactions in all economic and social activities within the
Emirate.
At the regulatory level, the state has issued laws appertaining to the establishment
of Telecommunications Regulatory Authority and allowing the competition between
the two service providers, i.e. Etisalat and Du, besides regulating the electronic
transactions and commerce.
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Fifthly: 2011 Economic Predictions
Under the recovery of global economy, crude oil prices forecast to rise allowing
the economy of the state to achieve an outstanding performance in 2011.
Additionally, the GDP growth is to rise in 2011 driven by international high prices
of oil and the escalation of growth pattern in non-oil sectors. It is expected that
the volume of GDP at current prices is to move up to AED 1311 billion in 2011
compared to AED 1093.1 billion in 2010, with growth rate of 20.0%. Also, it is
expected for Total Fixed Capital Formation at current prices to reach AED 307
billion compared to AED 260.2 billion in the in the previous year.
Further, non-oil sector is to maintain high rates of growth, driven by theescalation of government spending and implementing plans and programs of
economic diversity, depending on preparing the investment environment through
the amendment of the foreign direct investment law, consolidating partnership
between private and public sectors, encouraging joint investment projects and
attracting major foreign companies to open production elds as well.
Under the expectations referring that high oil prices are to continue, public
revenues growth forecasts to rise in 2011 and the internal and external economic
balance is to improve though the increase in government spending volume.
Moreover, government spending is expected to maintain its role as a main incentive
for economic growth in the state, and this is represented by the government plan
to update the infrastructure in the northern emirates, a step towards achieving
much more extensive economic growth. Further, the federal government budget
is to focus on social development and the social services sector is to spend about
AED 19 billion by a rate of 46% of the total public budget in 2011 to be allocated
for general and higher education, health, pensions, social benets, Sheikh ZayedHousing Program and Marriage Fund, which constitute the direct services affecting
the lives of the citizens and their standards of living.
Furthermore, some inationary pressures are expected to emerge under high
international prices for commodities, foods and fuel prices owing to the expectation
for ination rate as per the consumer price index is to be moderate within 2.0% in
2011 together with the stability of rental prices.
In this context, economic incentives the state is obliged to provide to encourage
creativity were furnished and updated along with providing the requirements
needed for getting the technical knowledge and using it effectively to increase
the existing and new knowledge. This, in effect, requires from the competitive
economic environment to adopt good policies in order to practice market activities
so as to be open to free trade, direct investment, and protecting intellectual
property rights with a view to encouraging growth and investment in knowledge.
For the purpose of establishing the rules and principles of knowledge economy,
the UAE has developed practical and effective plans to diversify the economic
base to be a center and a hub for advanced technology. Through this approach,
the state has already entered to partnerships and economic relations with many
prominent international companies possessing advanced technical capacities tofetch and direct the same towards researches and development with the aim of
creating the actuating force for economic diversity in different economic elds in
the state.
5. Knowledge economy partners
Knowledge economy is heavily leaning on the correlation between economic
growth and total human capital measured in accordance with the total population
of university education. On that basis, it is required to adopt and support policies
aiming at reforming education systems for the purpose of orientation towards
information economy to create knowledge society in which the creative and
innovative individuals having high skills use the digital resources to create new
products. This, in effect, required developing policies and programs aiming to
increase the effect of information technology on education and economic and
social development. The list of partners in this connection is:
Ministry of Economic
Ministry of Education
Ministry of Higher Education and Scientic Research
Governmental authorities
Universities
Research institutes and centers
Governmental and non-governmental organizations
Companies and investment institutions working in the eld of advancedtechnology transfer and localization.
The abovementioned authorities are required to work on connecting and
coordinating between policies in the eld of communications, sciences and
technology through developing main plans for communication and information
technology to be linked to sustainable economic growth.
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Sixthly:StatisticalSchedules
ScheduleNo.
(1)
UAEKeyEconomicVariables
(value:AED
million)
2010*
2009*
2008
2007
2006
2005
2004
2003
2002
Economicvariables
1.093.114
992.805
1.156.267
948.056
815.684
663.316
542.885
456.662
403.300
GDPatcurrentprices
749.182
705.599
728.602
627.708
510.922
436.085
384.798
341.881
309.595
GDPsaveCrudeOilSector
977.329
963.530
979.291
948.056
918.541
835.750
7973052
727.460
668.618
GDPat2007prices
1.107.084
1.002.405
1.170.237
978.806
833.084
673.916
545.485
456.462
406.683
GNI
979.767
901.147
1.058.126
887.596
752.032
602.438
507.765
420.982
373.144
NNI
938.367
863.747
1.019.126
853.485
721.931
577.737
486.921
403.862
356.894
DisposableNationalIncome
198.420
162.345
229.908
206.191
199.808
145.651
105.934
88.691
65.381
NationalSaving
739.947
701.402
789.219
647.294
522.122
432.086
380.986
315.172
291.513
FinalConsumptionExpenditure
(FCE)
90.141
89.301
66.570
56.19
0
50.961
45.544
42.286
38.661
35.388
GovernmentFCE
649.806
612.101
722.649
591.104
471.161
396.542
338.700
276.511
256.125
PrivateFCE
260.230
221.252
244.967
217.835
141.822
121.911
101.433
94.947
84.981
Totalxedcapitalformation
822.739
741.694
913.748
685.620
559.813
448.305
345.100
255.380
199.647
CommodityandServiceExports
745.825
687.271
806.901
610.128
414.737
344.710
288.027
211.786
175.711
CommodityandServiceImports
256.854
241.531
255.471
206.146
158.434
139.927
123.115
111.098
98.443
Volumeofwages(compensations
forworkers)
115
114
112
148
133
122
115
109
106
Generalindexforconsumer
prices(2000=100)1
0.9
1.6
12.3
11.1
9.3
6.2
5.0
3.2
2.9
Ination(%) S
ource:NBS
*Preliminary**Discretionary
1.Indexfor2008&2009withBaseYear2007=100.
Statistical Appendices
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ScheduleNo.
(5)
GrossFixedCapitalFormation
2010
2009
2008
2007
2006
2005
2004
2003
2002
Sectors
211.762
178.235
204.256
191.010
123.335
104.809
83.561
77.762
70.082
:Non-Financialprojectsector
985
911
913
843
862
848
822
828
836
Agriculture,animal&shresources
26.070
20.156
22.552
11.392
9.877
8.449
7.555
7.080
6.677
Crudeoilandnaturalgas
325
289
340
314
268
244
222
209
202
Quarries
36.291
30.268
32.201
22.415
21.167
17.803
15.484
13.745
12.114
Manufacturing
33.531
26.424
24.024
14.993
12.795
11.575
10.058
8.829
7.762
Electricity,gasandwater
16.193
13.807
17.222
13.812
8.042
6.491
5.047
4.796
4.424
Construction
11.507
10.166
14.177
23.228
13.275
11.204
4.003
3.779
3.193
Whole/retailtrade&maintenance
services
4.218
3.497
4.300
7.972
6.865
6.102
4.770
4.002
3.461
Restaurantsandhotels
31.640
27.371
32.374
24.368
16.665
15.262
13.152
12.897
11.166
Transport,warehousingandcommu-
nications
40.303
36.719
48.056
64.692
29.653
23.441
19.518
19.008
18.188
Realestateandbusinessservices
10.699
8.627
8.096
6.981
3.866
3.391
3.020
2.589
2.059
Socialandpersonalservices
3.229
2.890
3.526
5.596
2.182
1.938
1.768
1.480
1.306
Financialprojectsector
45.238
40.127
37.185
21.230
16.305
15.164
16.015
15.704
13.593
Gov.servicesector
260.230
221.252
244.967
217.835
141.822
121.911
101.433
94.947
84.981
Total
Source:NBS
*Preliminary
**Discretionary
ScheduleNo.
(4)
GDPStructure(at2007Prices)byEconomicActivity
%
2010
2009
2008
2007
2006
2005
2004
2003
2002
Sectors
92.9
92.9
93.4
93.1
93.6
93.5
94.1
94.0
93.9
Non-Financialprojectsector:
0.8
0.8
0.8
1.0
1
.0
1.2
1.3
1.5
1.7
Agriculture,animal&shresources
31.4
33.7
31.9
33.8
37.5
37.1
38.0
38.8
39.7
Crudeoilandnaturalgas
0.2
0.2
0.2
0.2
0
.2
0.1
0.1
0.1
0.1
Quarries
9.6
9.4
9.6
9.0
9
.1
9.4
9.2
9.4
9.8
Manufacturing
2.6
2.3
2.1
1.8
1
.9
2.0
1.9
1.9
1.7
Electricity,gasandwater
11.8
11.0
10.7
10.0
9
.4
7.6
7.4
6.7
6.4
Construction
13.3
12.9
13.9
13.9
13.6
13.9
13.9
14.2
12.8
Whole/retailtrade&maintena
nceservices
1.8
1.7
1.9
1.9
1
.8
2.0
2.1
2.1
2.2
Restaurantsandhotels
9.4
9.1
8.7
8.0
7
.0
7.1
6.8
6.5
6.6
Transport,warehousingandcommunications
9.7
9.6
11.6
11.7
10.4
11.5
11.6
11.3
11.2
Realestateandbusinessserv
ices
2.3
2.1
2.0
1.8
1
.6
1.6
1.7
1.7
1.6
Socialandpersonalservices
6.6
6.7
7.0
7.2
5
.9
5.6
4.4
4.2
4.1
Financialprojectsector
4.4
4.4
3.5
3.0
3
.0
3.4
3.4
3.7
3.8
Gov.servicesector
0.4
0.4
0.4
0.4
0
.4
0.4
0.4
0.4
0.4
Householdservices
4.3
4.4
4.3
3.6
2
.9
2.9
2.3
2.3
2.2
Minus:bankingservicescalculated
100
100
100
100
1
00
100
100
100
100
Total
68.6
66.3
68.1
66.2
62.5
62.9
62.0
61.2
60.3
Totalsectorssavecrudeoil
Source:NBS
*Preliminary
**Discretionary
7/29/2019 UAE Economic Annual Report
24/27
47
ScheduleNo.
(7)
GDPGrowth(atcurrentPrices)byEconomicActivity
%
2010
2009
2008
2007
2
006
2005
2004
2003
2002
Sectors
0.1
0.0
3.6
3.6
-3.6
2.4
2.7
-0.9
4.6
Agriculture,animal&shresources
19.8
-32.8
33.5
5.1
3
4.1
43.7
37.7
22.5
-1.1
Crudeoilandnaturalga
s
4.3
-4.3
-3.8
16.1
3
2.3
18.1
10.4
6.6
5.9
Quarries
5.9
0.7
16.6
8.5
1
2.0
12.6
11.6
6.3
4.3
Manufacturing
17.5
15.7
18.3
15.2
1
9.7
24.5
16.4
25.8
9.6
Electricity,gasandwate
r
8.6
-4.1
29.1
30.8
2
5.0
18.2
11.2
16.8
4.0
Construction
4.8
-9.5
11.7
23.2
1
9.0
7.6
6.3
7.6
8.3
Whole/retailtrade&maintenanceservices
11.7
-3.1
19.0
13.3
1
8.5
12.2
5.9
7.4
9.3
Restaurantsandhotels
7.0
4.1
16.7
22.7
1
8.8
12.6
22.8
10.2
17.0
Transport,warehousing
andcommunications
1.6
-15.1
13.1
36.4
1
4.5
13.3
19.8
15.1
15.2
Realestateandbusines
sservices
14.8
8.3
25.2
21.3
1
3.1
8.8
14.1
13.1
15.4
Socialandpersonalservices
3.4
-1.8
7.8
32.8
2
1.1
41.6
19.5
13.1
10.3
Financialprojectsector
4.3
23.4
36.2
16.2
5.8
10.8
4.8
8.2
6.4
Gov.servicesector
-3.1
2.6
16.1
13.1
1
4.4
23.1
3.4
7.4
6.5
Householdservices
3.0
3.2
31.0
40.4
1
1.4
41.9
15.9
12.8
16.9
Minus:bankingservices
calculated
10.1
-14.1
22.0
16.2
2
3.0
22.2
18.9
13.2
6.3
Total
6.2
-3.2
16.1
22.9
1
7.2
13.3
12.6
10.4
8.7
Totalsectorssavecrude
oil
Source:NBS
*Preliminary
**Discre
tionary
ScheduleNo.
(6)
GDPGrowth(at2007Prices)byEconomicActivity
%
2010
2009
2008
2007
2006
2005
2004
2003
2002
Sectors
-4.2
-0.8
-10.9
-1.8
-8.6
-4.0
-2.0
-3.1
3.2
Agriculture,animal&shresources
-5.6
3.9
-2.4
-7.1
1
1.2
2.3
7.4
6.2
-6.1
Crudeoilandnaturalgas
8.3
0.9
8.9
-2.4
4
4.1
7.0
21.1
2.9
1.6
Quarries
3.1
-3.8
10.3
1.9
7.3
6.6
7.9
4.3
2.9
Manufacturing
12.9
11.1
16.1
1.3
4.3
8.8
12.3
22.0
9.8
Electricity,gasandwater
8.6
1.3
10.3
10.0
3
6.1
7.1
21.9
12.8
-0.2
Construction
4.8
-8.4
2.7
5.9
7.5
5.0
7.4
20.0
20.2
Whole/retailtrade&maintenanceservices
10.7
-12.8
2.0
6.2
1.9
-1.2
7.9
3.4
3.3
Restaurantsandhotels
10.2
5.7
16.3
11.5
8.8
1.2
12.6
11.4
11.5
Transport,warehousingandcommunications
2.6
-18.7
2.6
16.1
-0.8
4.5
12.5
9.4
10.5
Realestateandbusinessserv
ices
10.2
5.7
16.3
11.5
8.8
1.2
12.6
11.4
11.5
Socialandpersonalservices
0.6
-6.0
1.2
24.8
1
5.9
33.9
15.3
10.9
8.8
Financialprojectsector
3.4
21.5
21.4
4.5
-3.2
3.8
0.3
4.9
3.3
Gov.servicesector
-8.1
-2.9
11.2
7.6
-6.0
13.2
9.5
6.5
3.8
Householdservices
0.2
-1.1
23.0
31.9
6.6
34.1
11.8
10.6
15.3
Minus:bankingservicescalculated
1.4
-1.6
3.3
3.2
9.9
4.9
9.6
8.8
2.4
Total
5.0
-4.2
6.2
9.4
9.1
6.4
11.0
10.5
9.0
Totalsectorssavecrudeoil
Source:NBS
*Preliminary
**Discretionary
7/29/2019 UAE Economic Annual Report
25/27
49
ScheduleNo.
(9)
GDP(at2007Prices)byExpenditure
AED
million
2002
2003
2004
2005
2006
2007
2008
*2009
*2010
FinalConsumptionExpenditu
re
443564
452998
488807
504722
565770
647294
704113
668307
656127
Governmentexpenditure
49436
52375
54823
55311
56632
56190
59305
78335
78383
(Privateexpenditure(familial
394128
400623
433984
449410
509138
591104
644808
589973
577744
Totalcapitalformation
101910
109817
110798
131465
149642
217835
222067
207823
240615
governmental
16808
18655
16611
15142
17671
21197
21822
24963
25816
public
26386
28360
31017
35057
40034
42992
55299
59440
61470
private
58716
62802
63170
81266
91937
153646
144947
123420
153330
Changeincommoditystocks
3451
3421
3685
6168
6977
7435
13871
14812
14836
CommodityandServiceExports
330988
406818
506669
564846
630405
685620
773891
719823
761700
Minus:CommodityandServiceimports
211296
245594
312907
371450
434253
610128
734652
647235
695949
(Indirecttaxes(net
2922
3938
4275
5463
6527
7559
8482
9612
9929
GDPatmarketprice
668618
727460
797052
835750
918541
948056
979291
963530
977329
GDPatbaseprice
665695
723522
792777
830287
912014
940497
970809
953918
967400
Source:NBS
*Preliminary
**Discretionary
ScheduleNo.
(8)
GDP(atcurrentPrices)byExpenditure
AED
million
2002
2003
2004
2005
2006
2007
2008
*2009
*2010
FinalConsumptionExpenditur
e
291513
315172
380986
432086
522122
647294
789219
701402
716547
Governmentexpenditure
35388
38661
42286
45544
50961
56190
66570
89301
90141
(Privateexpenditure(familial
256125
276511
338700
386542
471161
591104
722649
612101
626406
Totalcapitalformation
84981
94947
101433
121911
141822
217835
244967
221252
260230
governmental
14016
16129
15207
14042
16748
21197
24072
26576
27920
public
22003
24520
28395
32509
37942
42992
61001
63281
66481
private
48962
54298
57831
75360
87132
153646
159894
131395
165829
Changeincommoditystocks
2870
2950
3392
5724
6663
7435
15235
15728
16023
CommodityandServiceExports
199647
255380
345100
448305
559813
685620
913748
741694
851939
Minus:CommodityandServiceimports
175711
211786
288027
344710
414737
610128
806901
687271
751625
(Indirecttaxes(net
2430
3396
3935
5070
6234
7559
9316
10207
10723
GDPatmarketprice
403300
456662
542885
663316
815684
948056
1156267
992805
1093114
GDPatbaseprice
400870
453266
538950
658246
809450
940497
1146951
982599
1082391
Source:NBS
*Preliminary
**Discretionary
7/29/2019 UAE Economic Annual Report
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51
ScheduleNo.
(11)
GDPGrowth(atcurrentPrices)byExpenditure
%
2002
2003
2004
2005
2006
2007
2008
2009
*2010
FinalConsumptionExpend
iture
10.0
8.1
20.9
13.4
20
.8
24.0
21.9
-11.1
2.2
Governmentexpenditure
8.8
9.2
9.4
7.7
11
.9
10.3
18.5
34.1
0.9
(Privateexpenditure(familial
10.2
8.0
22.5
14.1
21
.9
25.5
22.3
-15.3
2.3
Totalxedcapitalformation
6.8
11.7
6.8
20.2
16
.3
53.6
12.5
-9.7
17.6
governmental
-9.8
15.1
-5.7
-7.7
11
.9
10.3
18.5
34.1
0.9
public
8.4
11.4
15.8
14.5
16
.7
13.3
41.9
3.7
5.1
private
11.9
10.9
6.5
30.3
15
.6
76.3
4.1
-17.8
26.2
Changeincommoditystocks
2.8
2.8
15.0
68.8
16
.4
11.6
104.9
3.2
1.9
CommodityandServiceEx
ports
7.0
27.9
35.1
29.9
24
.9
22.5
33.3
-18.8
14.9
Minus:CommodityandServiceimports
13.8
20.5
36.0
19.7
20
.3
47.1
32.3
-14.8
9.4
(Indirecttaxes(net
108.2
39.8
15.9
28.8
23
.0
21.3
23.2
9.6
5.1
GDPatmarketprice
6.3
13.2
18.9
22.2
23
.0
16.2
22.0
-14.1
10.1
GDPatbaseprice
6.0
13.1
18.9
22.1
23
.0
16.2
22.0
-14.3
10.2
Source:NBS
*Preliminary
**Discretionary
ScheduleNo.
(10)
GDP(at2007Prices)byEconomicSector
%
2010
2009
2008
2007
2006
2005
2004
2003
2002
Sectors
-4.2
-0.8
-10.9
-1.8
-8.6
-4.0
-2.0
-3.1
3.2
Agriculture,animal&shresources
-5.6
6.2
7.4
2.3
11.2
-7.1
-2.4
3.9
-6.1
Crudeoilandnaturalgas
8.3
0.9
8.9
-2.4
44.1
7.0
21.1
2.9
1.6
Quarries
3.1
-3.8
10.3
1.9
7.3
6.6
7.9
4.3
2.9
Manufacturing
12.9
11.1
16.1
1.3
4.3
8.8
12.3
22.0
9.8
Electricity,gasandwater
8.6
1.3
10.3
10.0
36.1
7.1
21.9
12.8
-0.2
Construction
4.8
-8.4
2.7
5.9
7.5
5.0
7.4
20.0
20.2
Whole/retailtrade&maintenanceservices
10.7
-12.8
2.0
6.2
1.9
-1.2
7.9
3.4
3.3
Restaurantsandhotels
4.3
2.8
12.5
17.9
8.4
9.1
16.0
7.3
15.0
Transport,warehousingandcommunications
2.6
-18.7
2.6
16.1
-0.8
4.5
12.5
9.4
10.5
Realestateandbusinessservices
10.2
5.7
16.3
11.5
8.8
1.2
12.6
11.4
11.5
Socialandpersonalservices
0.6
-0.6
1.2
24.8
15.9
33.9
15.3
10.9
8.8
Financialprojectsector
3.4
21.5
21.4
4.5
-3.2
3.8
0.3
4.9
3.3
Gov.servicesector
-8.1
-2.9
11.2
7.6
-6.0
13.2
9.5
6.5
3.8
Householdservices
0.2
-1.1
23.0
31.9
6.6
34.1
11.8
10.6
15.3
Minus:bankingservicescalculated
1.4
-1.6
3.3
3.2
9.9
4.9
9.6
8.8
2.4
Total
5.0
-4.2
6.2
9.4
9.1
6.4
11.0
10.5
9.0
Totalsectorssavecrudeoil
Source:NBS
*Preliminary
**Discretionary
7/29/2019 UAE Economic Annual Report
27/27
Sche
duleNo.
(12)
GDPGrowth(at2007Prices)byExpenditure
%
2002
2003
2004
2005
2006
2007
2008
2009
20
10*
FinalConsumptionExpenditure
5.2
2.1
7.9
3.3
12.1
14.4
8.8
-5.1
-1.8
Governmentexpenditu
re
5.7
5.9
4.7
0.9
2.4
-0.8
5.5
32.1
0
.1
Privateexpenditure(fa
milial)
5.1
1.6
8.3
3.6
13.3
16.1
9.1
-8.5
-2.1
Totalxedcapitalform
ation
3.1
7.8
0.9
18.7
13.8
45.6
1.9
-6.4
15.8
governmental
-12.9
11.0
-11.0
-8.8
16.7
20.0
2.9
14.4
3
.4
public
4.6
7.5
9.4
13.0
14.2
7.4
28.6
7.5
3
.4
private
8.0
7.0
0.6
28.6
13.1
67.1
-5.7
-14.9
24.2
Changeincommodity
stocks
-0.7
-0.9
7.7
67.4
13.1
6.6
86.6
6.8
0
.2
CommodityandServic
eExports
3.2
22.9
24.5
11.5
11.6
8.8
12.9
-7.0
5
.8
Minus:Commodityand
Serviceimports
9.9
16.2
27.4
18.7
16.9
40.5
20.4
-11.9
7
.5
Indirecttaxes(net)
101.1
34.8
8.6
27.8
19.5
15.8
12.2
13.3
3
.3
GDPatmarketprice
2.4
8.8
9.6
4.9
9.9
3.2
3.3
-1.6
1
.4
GDPatbaseprice
2.2
8.7
9.6
4.7
9.8
3.1
3.2
-1.7
1
.4
Source:NBS
*Preliminary
**Discre
tionary