UAE Economic Annual Report

7/29/2019 UAE Economic Annual Report

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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


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


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


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


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


14/27

27

/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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29

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)


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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31

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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33

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)


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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35

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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37

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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39

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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41

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


22/27


23/27

45

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


31.4

33.7

31.9

33.8

37.5

37.1

38.0

38.8

39.7


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


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


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


6.6

6.7

7.0

7.2

5

.9

5.6

4.4

4.2

4.1


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


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


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


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


3.4

-1.8

7.8

32.8

2

1.1

41.6

19.5

13.1

10.3


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


-5.6

3.9

-2.4

-7.1

1

1.2

2.3

7.4

6.2

-6.1


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


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


10.7

-12.8

2.0

6.2

1.9

-1.2

7.9

3.4

3.3


10.2

5.7

16.3

11.5

8.8

1.2

12.6

11.4

11.5


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


0.6

-6.0

1.2

24.8

1

5.9

33.9

15.3

10.9

8.8


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


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


Source:NBS

*Preliminary

**Discretionary


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


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


35388

38661

42286

45544

50961

56190

66570

89301

90141


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


2870

2950

3392

5724

6663

7435

15235

15728

16023


199647

255380

345100

448305

559813

685620

913748

741694

851939


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


26/27

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


8.8

9.2

9.4

7.7

11

.9

10.3

18.5

34.1

0.9


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


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


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


-5.6

6.2

7.4

2.3

11.2

-7.1

-2.4

3.9

-6.1


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


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


10.7

-12.8

2.0

6.2

1.9

-1.2

7.9

3.4

3.3


4.3

2.8

12.5

17.9

8.4

9.1

16.0

7.3

15.0


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


0.6

-0.6

1.2

24.8

15.9

33.9

15.3

10.9

8.8


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


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


Source:NBS

*Preliminary

**Discretionary


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

UAE Economic Annual Report

Documents

Transcript of UAE Economic Annual Report