30 November 2009
The report reaffirmed the significance of the National Day anniversary holds for all the people of the UAE, nationals and expatriates alike. The great history of the UAE was invoked upon, commemorating the strive of the UAE’s founding forefathers, the late Shaikh Zayed bin Sultan Al Nahyan and the late Shaikh Rashid bin Saeed Al Maktoum, who alongside with their fellow rulers of the emirates, actualised the dream of a unified state.The degree of prosperity and comfort that enjoyed today in the UAE is owed to this union, with the President, His Highness Shaikh Khalifa bin Zayed Al Nahyan, leading the path led by the founders before him.
UAE economy
Today the UAE is characterised as the second largest economy in the GCC, and leads the Middle East as a hub for business and finance. Recent statistics revealed that the UAE’s GDP was approximately Dh1 trillion in 2008, with an annual growth of 23 per cent compared to 2007. The GDP growth rate hit record highs over the last few years exceeding those of many advanced and emerging economies.
The UAE has also achieved high scores in global competitiveness and rankings. The latest Global Competitiveness Report 2009-2010 launched by the World Economic Forum (WEF) ranked the UAE at 23rd, out of 133 countries. This rank exceeds that of Malaysia, Ireland, Italy, and the two economic giants, India and China.
The UAE’s progress that it achieved in competitiveness continues amid the current global economic crisis, despite extreme drops in other parts of the world. The improved ranking of the UAE underscored the concrete fundamentals of the national economy and its ability to withstand global turbulence. It also speaks to the sound policy advocacy provided and the government’s ability to modulate to current conditions, which has resulted in continuous economic growth, especially in financial services, IT, and tourism. Moreover, the UAE has attracted great amounts of foreign investment and highly skilled labour.
Dubai
In terms of the comprehensive development of the UAE, Dubai has proven to be an important commercial and financial center on the national, regional and global levels. Its cosmopolitan lifestyle, modern infrastructure, advanced service sector, and integrated commercial activity, are all factors that facilitated Dubai’s significant contribution to putting the UAE on the map.
The strategic vision of His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai is the main pillar of the Dubai’s success story. Through this, Shaikh Mohammed portrays his aim to further develop the UAE economically, particularly by focusing on human capital development.
Vehicle of UAE economy growth
The report also mentioned the main sectors of the UAE economy. The oil sector, namely the most important source of national income, contributes in providing concrete infrastructure and improving other sectors. However, though oil is a strategic commodity effecting international trade, the contribution of oil to the gross GDP has reduced continuously over the last two decades.
This is due to the substantial developments of other non-oil sectors; such as commerce, logistics, tourism, and the financial sector. The diversification of income sources demonstrated by the UAE’s strive to reduce oil dependency protects the country from the offsets of oil price volatility which can lead to economic instability.
The manufacturing sector has also been developed remarkably especially in the presence of adequate infrastructure and available energy. Transportation, the foundation of economic progress, has also been improved dramatically to facilitate an easy flow of goods and other economic inputs, such as labor. In addition, the growth of the real estate sector in all emirates, especially in Dubai and Abu Dhabi, has shifted the country to a global real estate market front. It attracts a great deal of foreigners and locals, contributes significantly to foreign investment within the country.
Regarding other sectors, foreign trade is the UAE’s growth engine. The commercial relations have increased and improved between the UAE and other countries of the world. The UAE is an important re-exporting center and a distinguished platform for international commercial companies. As a result, the UAE’s non-oil exports have increased considerably over the last three decades, increasing the total value from Dh1.696 billion in 1981, Dh7.147 billion in 2000, and then Dh60.359 billion in 2008.
