UAE’s GDP to grow 3.5% in 2015

The United Arab Emirates’ gross domestic product is expected to grow more than 3.5 per cent to reach Dhs 1.6 trillion this year, the country’s minister of economy said.

In a statement to news agency WAM, Sultan Saeed Al Mansouri said that the country’s ability to maintain a high growth rate indicates its economic efficiency and its success in diversification.

He also said that the share of the UAE’s industrial sector has been growing and currently stands between 10 to 14 per cent. Al Mansouri added that he expected the size of investments in the UAE’s industrial sector to double over the next five years.

The UAE recorded its strongest growth last year with real GDP up 4.6 per cent and nominal GDP reaching Dhs 1.47 trillion. But despite being the most diversified among the Gulf countries, concerns over low oil prices have dampened the UAE’s growth prospects.

Earlier this year, the International Monetary Fund cut the Emirates’ growth forecast citing the impact of low oil prices on the economy.

The IMF anticipated that Abu Dhabi, which is highly dependent on hydrocarbon revenues, will see an overall economic growth of three per cent while its non-oil economy is slated to grow 5.5 per cent in 2015.

Meanwhile, Dubai’s economy is projected to grow by 4.5 per cent this year and 4.6 per cent in 2016, the fund said.

The UAE has intensified its diversification efforts in recent months and announced plans to invest heavily to improve innovation. The government has also asserted that it will continue with some of its big infrastructure projects to drive growth.

“We have put in place all the necessary plans to take (the non-oil sector’s) contribution to as high as 80 per cent in 2021 through intensive investment in the industrial and tourism sectors, air and maritime transport, import and re-export, as well as supporting a range of projects and initiatives based on the knowledge economy,” the UAE’s Vice President, Prime Minister and Dubai’s ruler Sheikh Mohammed bin Rashid Al Maktoum said in a note earlier this year.