ECONOMIC DEVELOPMENT
Key factors in the UAE’s successful
economic performance have been a strong
oil market, development of public joint
stock companies, enlargement of free
zones, a buoyant local stock market and
launches of several new mega-projects.
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Astute economic
policies provided
solid foundations
for impressive
growth in all
sectors.
ECONOMIC DEVELOPMENT
THE ECONOMY
A 20-YEAR PERIOD OF FISCAL DEFICITS in the UAE’s consolidated
government financial accounts came to an end in 2005 when it
posted a Dh38.2 billion surplus. Public revenues rose by 69.3
per cent to reach Dh160.5 billion, while public spending increased
by 27 per cent to reach Dh122.3 billion. The resulting surplus
contrasted with a deficit of Dh1.5 billion in 2004. This surge in
public finances was primarily due to the increase in oil and gas
revenues, which rose by 52 per cent in 2005, reaching Dh111.4
billion compared to Dh73.3 billion in 2004.
The country’s impressive economic performance during the
year led to a GDP growth rate of 25.6 per cent at current prices,
while real GDP growth is estimated at 8.2 per cent. Key factors
were the strong oil market, active development of public joint
stock companies, increased involvement of free zones and buoyant
local stock markets, together with launches of a number of
significant new projects. Astute economic policies provided solid
foundations for impressive growth in all sectors with GDP at
current prices reaching Dh485.5 billion in 2005 compared to
Dh386.5 billion in 2004 (based on Ministry of Economy figures
and Central Bank Annual Report).
According to the Ministry of Economy and the Central Bank, the
non-oil sector accounted for 64 per cent of nominal GDP (73 per
cent of real GDP), rising by 19 per cent to Dh312 billion, compared
to Dh263 billion in 2004. Development of the relatively new private
property market in the UAE supported a rise in contribution to GDP
of the real estate and business services sector, which formed 11.5
per cent of the non-oil GDP. Likewise, the building and constr