United Arab Emirates: Review of economic development - Research Paper Example

?United Arab Emirates: Review of Economic Development Introduction United Arab Emirates is a federation of seven s formed after their independence from British rule in 1971. “Although each state - Abu Dhabi, Dubai, Ajman, Fujairah, Ras al Khaimah, Sharjah and Umm al Qaiwain - maintains a large degree of independence, the UAE is governed by a Supreme Council of Rulers made up of the seven emirs, who appoint the prime minister and the cabinet” (BBC News, 2012). The oil reserves of the UAE are the seventh largest in the world, and the export revenues of crude oil has been used for the development of infrastructure, health care and education. Workers from the different countries contribute significantly for the growth and development of the UAE, and the expatriates account for three quarters of the population. One of the seven states Dubai has made bold moves in attracting foreign investments and has become the financial hub of the middle-east over the period of time. Islam is the national religion. But, the UAE is known for its religious tolerance and one of the most liberal countries in the gulf region attracting tourists from all over the world. Due to its advantageous geographical location, the UAE has developed into one of the important trading centers in the world with the retail sector growing well. Economy of UAE Before discovery of oil the economy was dominated by fisheries and pearling. Pearling industry was based on pearl oysters available on shallow banks in the gulf, and a source of employment during the seasons. The advent of cultured pearls and economic depression in 1930s destroyed the industry. Currently, the economy is predominantly oil based. The UAE’s hydrocarbon reserve is estimated to be 10 percent of the total reserves of the world. The oil revenue is judiciously used for the development of infrastructural facilities, general economic growth and social welfare of the people. The huge investments made in the energy sector attracted foreign market players into the Emirates. The large hydrocarbon reserves are expected to fuel the growth of the emirates for several decades in future. However, the government encourages private participation and public-private partnership for a sustainable growth and development in the long run. This strategy is made with a view to reduce the role of public sector in the economic development. The educational reforms introduced by the Emirates have enhanced the participation of the private sector to a considerable extent. Several renowned global universities have established their educational facilities here. If the education system is improved to the international standards, it is expected that it will benefit the nationals and encourage them to join the economic mainstream for the country’s development in future. The government’s efforts in diversification into construction, trading and retail, financial services and tourism to reduce the Emirates’ share of oil in the economy has started yielding results, and especially Dubai has attracted huge foreign investments in construction sector, for example in Burj Khalifa and Palm Islands. The UAE as a financial hub and tourist center has a good scope for future growth in the region for catering to the financial, retail & trading and entertainment needs of the people in the middle-east. The rate of Inflation remained more or less around the reasonable limit of 5%. The UAE has a healthier current account balance due to budget surpluses. Economic Data of (1991-2000) In the Annexure – I ‘UAE’s main economic indicators 1990–1999’ the GDP growth for the period is given as below. 1990 1991 1992 1993 1994 1995 1999 GDP at current prices (Dh billion) 125.3 126.0 128.4 131.7 135.0 143.9 181.5 It could be observed that that is a steady growth noticed in GDP at current prices over the period. Annexure – III ‘UAE: GDP’ shows GDP in AED, per capita GDP and annual growth along with the components of GDP. The GDP at 383,430m AED in 2005 has increased to 620,316 in 2010. The exports, imports and external balance reflect the phenomenal oil based economic growth during this period. During this period the number of industrial factories grew from 109 in 1991 to 220 in 2000, with an annual growth rate of 8.1%. 75.5% of these factories manufacture basic necessities. The number of employees grew from 7,700 in 1991 to 25,000 in 2000. The average number of workers employed at a single food, beverage, or textile production plant reaches 183 workers; while the average number at a chemical, rubber, plastics, or metal factory is 104. The total venture capital in the manufacturing industries grew from DH 775 million in 1991, to DH 4.4 billion in 2000, an annual growth of 19%. (AccessMyLibrary, 2002) As per the Annexure – I though both imports and exports have risen consistently during the period, we can observe that there is current account surplus in all the years except 1994. The imports have been mainly in connection with infrastructure development. Highlights of the Era 1991-2000 “Increase in demand for oil augured well for the UAE where demand has been adjusted upward by 175,000-200,000 b/d for 1991-2000. The gain reflects previously unreported bunker demand at the local bunkering hub of Fujairah” (Merilyn. 2002). Growth of venture capital in manufacturing industries indicates the performance of non-oil sector in the Emirates. Shihab (n.d. 251) states “Agriculture has made only a small contribution to GDP (3.8 per cent in 1999). There has, however, been a consistent and substantial increase in the amount of land devoted to agriculture and forestry over the past 30 years.” The Annexure - II, International human development comparisons 1997 shows the UAE’s relative position to the developing countries and industrial countries. It compares more or less well with the industrial countries and well ahead of the developing countries in terms of Real GDP, Human Development Index, Life Expectancy and other parameters. Economic Data of (2001-2007) The growth in GDP and GDP per capita during the period has been good with high at AED 545,367 m and 340,000 AED respectively during 2007. Export of goods at 281,050 m AED in 2007 (195,820 in 2005), external balance on goods at 217,707 m AED (160,605 in 2005) and gross fixed capital formation at 61,587 AED (47,278 in 2005) reflect the growth of the economy, growth in the balance of payment position and capital formation during the period as per Annexure – III, ‘UAE GDP and GDP Components’. Annexure – V ‘UAE: Government Revenue’ shows Distribution of Government revenues for the period from 2005 to 2010. Foreign Direct Investment stood at 41,241 m AED at the close of the year 2007 (Annexure – IV, UAE Foreign Direct Investment). Annual average per capita of household for non-nationals and nationals in 2007 has been at 41,089 and 45,030 respectively in Abu Dhabi Emirate as per Annexure – X, UAE: Household Income. Highlights of the Era 2001-2007 “Industrial investment in Abu Dhabi's non-petrochemical industry over the last three years was Dh6 billion and is set for further growth, said Sheikh Hamed bin Zayed Al Nahyan, chairman of the Abu Dhabi Economic Department” (Asia Africa Intelligence Wire, 2003). This era has been marked by infrastructure development in the Emirates aiming industrial development in the country which include oil based and other industries. Abu Dhabi has planned for Expo Centre for the promotion of national products. Some of the state owned undertakings have been brought under the control of a holding company formed for this purpose. It is expected that this move will lead to diversification of the undertakings into the other fields. The government’s strategy is to increase the share of non-oil sector in GDP. “The industrial investment in the non-petrochemical industry of Abu Dhabi over the past three years was Dh6 billion. The investments were made by 700 factories” (Carvalho, 2003). Another important feature of the era is privatization of the government owned factories through shares sell-off. This is expected to increase competition in the UAE market and efficiency in the industries in general. Adoption of new emerging technologies will increase the competitiveness of the locally manufactured products for exports. Carvalco (2004) states that this move “will create the right investment climate to absorb Arab money returning home from abroad and thus boost local stock market activity.” The country has entered into several bilateral relationships with the various developing countries during this era. “Abu Dhabi has expressed a keen desire to do business in India, and forge strategic partnerships with India, visiting Chairman of the Department of Economy and Planning, H H Sheikh Hamed Bin Zayed Al Nehyan said today” (Asia Africa Intelligence Wire, 2005). Economic Data of (2008-2012) Oil exports as a percentage of exports for the following years indicate that share of fuel exports remain at higher levels, and the government’s efforts to increase the share of non-oil exports is yet to yield results significantly. Year 2005 2008 2009 2010 Fuel Exports (% of exports) 94.3 96.6 91.5 92.5 The Emirates strategies to increase the share of non-oil industries in the GDP are expected to pay-off in future. It is encouraging to note that as per Annexure – VI ‘UAE: Non-oil Foreign Trade- Yearly’ total non-oil exports have been steadily increasing from the year 2007 as given below. 2007 2008 2009 2010 11,420.4 12,494.1 18,195.0 22,602.6 Inflation has been moderate during the period at 119.3 in 2011 as per Annexure – VIII, UAE: Price indices. Compensation of Employees by Economic Activity as Percentage of the GDP at Current Prices in (%) as per Annexure – IX shows overall growth during the period as below. 2005 2006 2007 2008 2009 2010 All Sectors 14.6 12.8 13.2 13.5 20.1 18.9 The downturn in economy in the other parts of the world due to sub-prime crisis in the US and subsequent financial crisis in the western countries has not affected the UAE significantly due to reasonably good oil prices and heavy government expenditure which maintained the employment and demand level. The financial problems associated with Burj Khalifa, the world’s tallest building in Dubai has been sorted out successfully. However, it is an important setback which arose due to overheating of the economy on account of aggressive investment plans pursued by Dubai. Government expenditure at this scale warrants careful analysis of the world’s economic environment. UAE Budget: Surplus and Deficit (2000-2012) In 2011, the UAE had a budget surplus at 2.90% of the GDP as reported by the Central Bank. From the year 2000 to 2011, budget average has been 1.4% of GDP with a high of 21.1% in 2008. Comparative performance with other GCC countries “Using the Inward FDI Performance Index proposed by UNCTAD, and presented in table 2, four of the six GCC countries have received a share of the global FDI flows that surpass their global relative economy size” (Al-Iriani and Al-Shamsi, p. 13). FDI investments indicate the confidence of the global investing community at the economic prospects of the country UAE with the FDI Performance index is at 104. Annexure – IV UAE: Foreign Direct Investment shows the actual investments in terms of million AED which shows an improvement of 25.1% during 2008. Rankings by the Inward FDI Performance Index, 2004 ( Min:1 , Max 140) (Table 2) Bahrain 27 Qatar 63 UAE 104 Oman 110 Saudi Arabia 121 Kuwait 138 The following statement showing Assets Under Management by the GCC countries indicates the phenomenal strength of UAE. Sovereign Wealth Funds UAE 719.1 Dubai 19.6 Ras al Khaimah 1.2 Abu Dhabi 698.3 ADIA 627.0 IPIC 58.0 Mudabala 13.3 Kuwait 296.0 Qatar 85.0 Oman 8.2 Total 1108.3 Source: SWF Institute The Non-oil Real GDP Growth (%) as given in Annexure – XIV for the GCC countries showing the general economic performance over the period of time indicates the need of UAE to push up its non-oil industries’ share in GDP. Oil production of the country as shown in Annexure - XIII GCC Oil Production has grown steadily over the period of time. “However, assuming oil prices hold at around $100/b, the GCC will still continue to generate large current account surpluses, helped by lower commodity import prices and some moderation in import volumes as projects are scaled back in the UAE” (OCED, 2011). Comparative performance with the other economies The economic growth of the developed as well as developing nations has been subdued during the recent years and the year 2012 is no exception in view of recessionary fears still lingering in Europe, though US recessionary fears are diminishing. The GDP growth in GCC countries for the corresponding period (OECD, 2011) given below compares well with the world average and better than the developed countries. 2010 2011 2012 Real GDP Growth (percent, annual) World 5.1 3.7 3.2 U.S. 3.0 1.7 1.5 Japan 4.0 -0.5 2.0 Euro area 1.8 1.5 -0.5 Emerging Markets GCC 7.3 5.1 6.0 7.0 5.5 3.7 Role of Central Bank of UAE in UAE economy The Central Bank of the UAE was previously known as UAE Currency Board.  “The Central Bank plays a vital role in the national economy with the main responsibility to formulate and implement the banking, credit and monetary policy to ensure price stability, and to support the Dirham and its free convertibility in addition to acting as "the bank of banks" and the banker and financial advisor to the Government” (Dubai City Guide, 2012). The Central Bank regulates the financial institutions and the banking sector in the Emirates and has been playing a major role in transforming the Emirates into a regional financial centre. Performance of Financial Markets The National Bank of Abu Dhabi (NBAD) index has gained 43.6% in 2007. The impressive macro-economic fundamental in UAE reflects in the performance of the financial markets. Annexure – VII, UAE: ‘Capital Markets’ shows remarkable improvement during the period 2006 to 2008. Nearly 50% fall in Abu Dhabi Securities exchange around 2009 can be attributed to the international phenomenon in the stock markets which had a contagion effect on the ADI. 2005 2006 2007 2008 2009 2010 Stocks traded, total value (Billion AED) 104.7 70.6 175.3 232.2 70.0 34.6 “Dubai Financial Market General Index is a capitalization weighted price index comprising stocks of listed companies. The base value of the index is 1000 as at January 1st 2004” (Bloomberg, 2012) which is at 1584.52 as on 13 December 2012. Population growth Annexure – XI ‘UAE: Population Growth’ shows that the country’s population has increased from1374169 in 2005 to 1967659 in 2010. As per Annexure – X ‘UAE household income’ Annual average per capita income in 2007 is at 41,089 for non-nationals and 45,030 for nationals. Annexure – XII, ‘UAE: Population Composition and Distribution’ shows the percentage of the population residing in rural areas. The process of bringing the people residing in rural areas to the mainstream economic activities is being carried out with good planning by the government. Observations and Future outlook Creation of infrastructural facilities with heavy investments for the development of industries, international airports and bigger ship ports facilitate international trade, and UAE has become the trading centre for the middle-east with world-class hotels, banking facilities and mega super markets. For example, Jebel Ali port with its deep harbor can accommodate the bigger aircraft carrier and other battle ships of the USA and several other mega-sized ships. “The business side of things is thriving, with more than 5000 companies active in Jebel Ali Free Zone, making it the world's third largest free zone. The port itself is one of the premier shipping centres of its kind in the Middle East and indeed the world” (Industrials Directory, 2009).  Jebel Ali Free Trade Zone is in the vicinity of the Dubai International Airport. Emirates Airlines is the largest airlines in the Middle-east. Dubai Metro Project and the Abu Dhabi’s plan for railways will strengthen the infrastructural facilities very significantly. These superior infrastructural facilities created with a long term point of view along with the tax free regime, regulatory business environment with few monetary and other controls on the industries make UAE an export hub for a number of multinational companies. These are the distinctive features which should form the basis for its better performance compared with the other developed countries’ economies in future as well, though consolidation is called for in the case of Dubai due to fiscal deficits. However according to the OPEC’s forecast there are challenges ahead in the economy in the near future. “Large increases in oil, NGL and gas production will ensure a strong contribution from the UAE’s hydrocarbons sector in 2011. This will be bolstered by a healthy revival in Dubai’s trade and service economy - although activity has weakened in the second half - to push real GDP growth to 4.3 percent. However, a downscaling of Abu Dhabi’s development spending plans; deteriorating global trade, growth and financial conditions; lower oil prices and a possible OPEC mandated cut in oil output, will all weigh heavily on the economy next year” (OECD, 2011). There are certain risks in achieving the desired economic objectives due to the following factors. Oil companies are facing certain environmental controls due to international pressures in the aftermath of Gulf of Mexico oil spill. Financial turmoil in the western countries could lead to pressure on crude oil prices due to weak demand. Crisis in financial services industries and the international banking system coupled with organizational changes due to mergers and acquisitions can have its impact on the UAE’s economy. The postponement of the proposed health insurance reforms may affect the employment of expatriates in the long run. Suggestions for improvement in economic growth Integration of the Educational institutions with the internationally reputed universities will expose the local talents to international practices. The will form the foundation for starting industrial ventures by the Emirates’ entrepreneurs with the stabilizing effects on the oil based economy. Increase in oil prices will affect the world economy negatively. Therefore, industries set up by the nationals in foreign countries will be benefited in the event of reduction in oil demand and oil prices internationally. The government has already been formulating strategies for improving the share of non-oil industries in GDP. The government can encourage collaboration agreements by the private sector with the foreign companies for setting up manufacturing facilities in UAE. This will create employment opportunities for a sustainable development in the long run. Conclusion The future outlook for the UAE is promising. But, there are challenges on the way to achieve the desired macro-economic objectives of the Emirates. The strategies adopted with the vision on the part of the rulers have enabled the country to consolidate its economic developments achieved over the period of time while the developed countries have been facing financial crisis. The international price of the crude oil is an important determinant in the future economic growth of the country. With the economy under growth trajectory, large oil reserves of the country and inflation under control, the country is likely to do well though Dubai’s fiscal deficit is a cause for concern. Bibliography Al-Iriani, Mahmoud and Al-Shamsi, Fatima. “Foreign Direct Investment and Economic Growth in the GCC Countries: A Causality Investigation Using Heterogeneous Panel Analysis.” Web. 10 Dec. 2012. BBC News, 2012. “United Arab Emirates Profile.” BBC News Middle East. 2012. Web. 10 Dec. 2012. http://www.bbc.co.uk/news/world-middle-east-14703998 Bloomberg. “Dubai Financial Market General Index.” Web. 11 Dec. 2012. http://www.bloomberg.com/quote/DFMGI:IND Carvalho, Stanley. “Dh6b invested in Abu Dhabi non-oil sector in three years.” Asia Africa Intelligence Wire, 2003. Web. 10 Dec. 2012. AccessMyLibrary. “UAE: INDUSTRIAL DEVELOPMENT IN ABU DHABI 1991-2000.” July 24, 2002. Web. 11 Dec. 2012. Industrials Directory. Jebel Ali Industrial Area. 11 Nov. 2009. Web. 11 Dec. 2012. Asia Africa Intelligence Wire. “ABU DHABI EAGER TO INCREASE BUSINESS LINKS WITH INDIA.” 2005. Web. 11 Dec. 2012. Dubai City Guide. “The Central Bank of UAE.” 2012. Web. 13 Dec. 2012. http://www.dubaicityguide.com/site/features/index.asp?id=1305 Marilyn, Radler. 2002. “Market movement”. The Oil and Gas Journal.  August 19, 2002. Web. 10 Dec. 2012. Mohamed, Shihab. “Economic Development in the UAE.” UNITED ARAB EMIRATES: A NEW PERSPECTIVE. Web. 10 Dec. 2012. OCED, 2011. “The GCC Economic Outlook 2012.” Web. 11 Dec. 2012. < www.samba.com> Statistics Centre – Abu Dhabi, 2012. Web. 11 Dec. 2012. Trading Economics, 2012. “UNITED ARAB EMIRATES GOVERNMENT BUDGET.” Web. 11 Dec. 2012. Appendices Annexure - I UAE’s main economic indicators 1990–1999 Economic indicators 1990 1991 1992 1993 1994 1995 1999 GDP at current prices (Dh billion) 125.3 126.0 128.4 131.7 135.0 143.9 181.5 Real GDP growth (%) 11.9 –2.4 –0.9 –0.6 –2.4 –0.8 6.7 Population (million) 1.84 1.91 2.01 2.09 2.23 2.37 2.93 Total exports (fob), $ billion 21.25 22.15 23.37 23.31 21.78 23.44 32.28 Imports (fob) $ billion 11.69 13.92 15.83 17.75 18.25 18.98 28.33 Current account ($ billion) 5.09 1.53 3.00 0.18 –0.72 0.36 3.94 Reserves excluding gold ($ billion) 4.58 5.37 5.71 6.10 .. .. .. Total external debt ($ billion) 11.05 10.20 10.80 11.07 .. .. .. Oil production mnb/d 2.12 2.42 2.29 2.22 2.17 2.22 2.28 Oil price (average) $/barrel .. .. 18.5 16.4 14.3 15.5 18.2 Crude oil exports ($ billion) .. .. 14.10 12.10 10.28 11.44 16.62 Exchange rate Dh:US $ (average) 3.671 3.671 3.671 3.671 3.671 3.671 3.671 Inflation (%) .. .. 5.5 3.2 5.0 5.5 3.1 Sources: MoP (Ministry of Planning, UAE), Annual Economic Report 1999. CPC (Crown Prince Court, UAE), Development Indicators in the UAE (1999). Bibliographical Reference - Mohamed, Shihab (n.d.253) Annexure - II International human development comparisons 1997 Indicator UAE All All Developing Industrial Countries Countries (average) (average) Real GDP per capita ($) 19,115 3,240 23,741 Human Development Index (HDI) 0.812 0.637 0.919 Life expectancy (years) 74.8 64.4 77.7 Maternal mortality rate (per 100,000 live births) 26 491 13 Infant mortality rate (per 1000 live births) 9 64 6 Adult literacy (%) 74.8 71.4 98.7 Population with access to health services (%) 90 .. .. Daily per capita supply of calories 3,366 2,628 3,377 Source: UNDP, Human Development Report, 1999. Bibliographical Reference - Mohamed, Shihab (n.d.258) Annexure - III UAE: GDP   Indicator 2005 2006 2007 2008 2009 2010* 01.01.01.1 GDP (Current million AED) 383,430 492,249 545,367 705,159 535,311 620,316 01.01.01.3 GDP per capita (000 AED) 279.0 336.8 346.4 415.8 293.1 315.3 01.01.01.5 GDP current growth (annual %) 31.7 28.4 10.8 29.3 -24.1 15.9 01.01.01.7 GDP per capita annual growth (%) 26.1 20.7 2.9 20.0 -29.5 7.6 GDP Components SCAD Code   2005 2006 2007 2008 2009 2010 01.01.02.1 Exports of goods ( Million AED) 195,820 na 281,050 372,845 214,827* 300,708* 01.01.02.5 Exports of goods (% of GDP) 51.1 na 51.5 52.9 40.1* 48.5* 01.01.02.7 Imports of goods (Million AED) 35,214 45,698 63,343 90,277 93,872 86,574 01.01.02.10 Imports of goods (% of GDP) 9.2 9.3 11.6 12.8 17.5 14.0* 01.01.02.12 External balance on goods (Million AED) 160,605 na 217,707 282,568 120,955* 214,134* 01.01.02.13 External balance on goods (% of GDP) 41.9 na 39.9 40.1 22.6* 34.5* 01.01.02.32 Gross fixed capital formation (Million AED) 47,278 52,351 61,587 104,426 155,505 177,466* 01.01.02.34 Gross fixed capital formation (annual % growth) 7.5 10.7 17.6 69.6 48.9 14.1* 01.01.02.35 Gross fixed capital formation (% of GDP) 12.3 10.6 11.3 14.8 29.0 28.6*   Source: Statistics Centre - Abu Dhabi   * Preliminary estimates . Annexure - IV UAE: Foreign Direct Investment SCAD Code Indicator 2005 2006 2007 2008 2009 01.02.01.3 Foreign direct investment - net inflows (Million AED) 41,241 51,612 01.02.01.4 Foreign direct investment - net inflows (annual growth%) 25.1 01.02.01.5 Foreign direct investment, net inflows (% of GDP) 7.6 7.3 Source: Statistics Centre - Abu Dhabi Annexure - V UAE: Government Revenue SCAD Code Indicator 2005 2006 2007 2008 2009 2010* 01.05.01.1 Distribution of Government revenues - Petroleum royalties and tax revenue (%) 85.9 92.3 91.6 92 89.2 82.6 01.05.01.2 Distribution of Government revenues - Department collections revenue (%) 11.6 5.8 6.5 6.4 8.1 7.3 01.05.01.3 Distribution of Government revenues - Capital revenue (%) 2.5 1.9 1.9 1.6 2.7 10.1   *Preliminary Estimates   Source: Statistics Centre - Abu Dhabi Annexure – VI UAE: Non-oil Foreign Trade- Yearly Value in Million AED Item 2006 2007 2008 2009 2010 Imports 91,396.4 63,340.9 90,277.0 93,872.2 86,574.1 Non-oil Exports 9,173.3 5,805.3 6,252.0 9,500.8 11,610.9 Re-exports 8,162.1 5,615.0 6,242.0 8,694.2 10,991.7 Total Non-oil Exports 17,335.4 11,420.4 12,494.1 18,195.0 22,602.6 Total Non-oil Foreign Merchandise Trade 108,731.9 74,761.2 102,771.1 112,067.2 109,176.7 Source: Statistics Centre - Abu Dhabi Annexure - VII UAE: Capital Markets SCAD Code Indicator 2005 2006 2007 2008 2009 2010 01.04.01.1 Listed domestic companies, total 55 56 59 60 62 61 01.04.01.2 Market capitalization of listed companies (Billion AED) 486.4 295 443.2 252.7 294.6 283.9 01.04.01.3 Market capitalization of listed companies (% of GDP) 126.9 59.9 81.3 35.8 55.0 45.8* 01.04.01.4 Stocks traded, total value (Billion AED) 104.7 70.6 175.3 232.2 70.0 34.6 01.04.01.5 Stocks traded, total value (% of GDP) 27.3 14.3 32.2 232.0 13.1 5.6* 01.04.01.6 Turnover ratio (%) 21.5 23.9 39.6 91.8 23.8 12.2   Source: Abu Dhabi Securities Exchange - ADX  Annexure - VIII UAE: Price Indices SCAD Code Indicator 2005 2006 2007 2008 2009 2010 2011   01.03.01.1 Consumer price index (General CPI, CPI detailed by welfare level, and by household type) 83.5 90.4 100.0 114.9 115.8 119.3 119.3   Source: Statistics Centre - Abu Dhabi Annexure - IX Compensation of Employees by Economic Activity as Percentage of the GDP at Current Prices ISIC3.1 (%) Economic Activity 2005 2006 2007 2008 2009 2010* Total 14.6 12.8 13.2 13.5 20.1 18.9 Non Financial Corporations Sector 10.9 9.8 10.3 10.0 15.0 14.0 Agriculture, Live stock and fishing 0.5 0.3 0.3 0.2 0.3 0.3 Mining and quarrying 1.0 0.8 0.9 1.0 1.5 1.7 Manufacturing industries 1.2 1.1 1.1 1.1 2.1 2.0 Electricity, gas and water 0.3 0.2 0.2 0.2 0.3 0.3 Construction 2.0 1.8 2.2 2.1 3.0 2.7 Wholesale retail trade and repairing services 1.7 1.4 1.4 1.3 1.3 1.1 Restaurants and Hotels 0.3 0.3 0.3 0.3 0.4 0.3 Transport, storage and communications 1.1 1.3 1.3 1.1 1.6 1.5 Real Estate and Business services 1.6 1.4 1.5 1.5 2.2 2.0 Social and Personal services 1.3 1.1 1.1 1.2 2.3 2.1 Financial Corporations Sector 0.7 0.6 0.6 0.7 1.0 0.9 Public Administration and Defense 2.7 2.2 2.1 2.6 3.8 3.7 Domestic Services of households 0.2 0.2 0.2 0.2 0.3 0.3 Source: Statistics Centre - Abu Dhabi * Preliminary estimates Annexure - X UAE: Household Income Annual average per capita income by type of household & region 2007 Region Type of Household Region General Average Collective Non-national National Abu Dhabi Urban 53,367 31,976 50,765 72,834 Abu Dhabi Rural 30,186 18,776 17,190 33,720 Al Ain Urban 29,182 21,048 25,119 36,955 Al Ain Rural 21,588 13,211 13,516 27,759 Western Region and Islands 31,717 19,672 30,187 41,560 Abu Dhabi Emirate 39,510 23,739 41,089 45,030 Source: Statistics Centre - Abu Dhabi Annexure – XI UAE: Population Growth SCAD Code Indicator 2005 2006 2007 2008 2009 2010 03.01.01.1 Total Population* 1374169 1461479 1574280 1695788 1826673 1967659 *(2006-2009) Estimates are based on the Preliminary Results of Census(phase 2 ) Conducted by SCAD in2010 (2010)  Preliminary results of Census (phase 2) conducted by SCAD in 2010. Source: Statistics Centre - Abu Dhabi Annexure - XII UAE: Population Composition and Distribution 2005 2006 2007 2008 2009 2010 Percentage of the population residing in rural areas 31.420 31.770 32.390 33.040 33.740 34.480 Percentage of the population residing in rural areas in Abu Dhabi region 20.56 20.96 21.59 22.27 23.01 23.80 Percentage of the population residing in rural areas in Al Ain region 32.60 32.68 32.93 33.18 33.42 33.67 Source: Statistics Center - Abu Dhabi Annexure – XIII GCC Oil production m b/d 2008 2009 2010 2011f 2012f Saudi 9.12 8.09 8.23 9.25 9.00 Kuwait 2.57 2.27 2.30 2.47 2.35 UAE 2.55 2.26 2.30 2.51 2.35 Qatar 0.84 0.77 0.82 0.82 0.82 Oman 0.67 0.72 0.77 0.78 0.81 Bahrain 0.18 0.18 0.18 0.19 0.20 GCC 15.93 14.29 14.60 16.02 15.53 % change 3.9 -10.3 2.2 9.8 -3.1 Source: PFC, Samba Annexure - XIV Non-oil Real GDP Growth (%) 2007 2008 2009 2010 2011f 2012f Saudi 4.6 4.3 3.8 4.3 5.5 5.0 UAE 9.1 6.3 0.6 3.3 3.0 2.8 Kuwait 9.7 6.1 -1.2 3.5 3.0 3.0 Qatar 30.9 27.9 9.8 8.4 8.5 9.0 Oman 13.1 16.1 -0.8 3.0 4.3 5.0 Bahrain 9.2 7.0 3.4 4.6 0.8 3.2 GCC 9.2 7.8 2.7 4.3 4.7 4.6 Source IMF, national authorities, Samba Read More