UAE on track to meet 2021 economic diversification targets
Dubai’s non-oil private sector economy expanded at a fastest rate in nearly a year in March, according to a new business survey.
The seasonally adjusted Emirates NBD Dubai Economy Tracker Index rose from 55.8 in February to 57.6 in March, the highest since May 2018.
Total business activity (output) increased at the fastest rate since January 2015 while two of the three key monitored sectors – travel and tourism and wholesale and retail – posted series record increases in activity.
With new business growth also accelerating, expectations for the next 12 months were the second-strongest on record, just shy of January’s peak, the survey showed.
A growth in output, rise in demand and stabilisation in staffing levels have seen the UAE’s non-oil private sector regain momentum in March, according to data from the Emirates NBD Purchasing Managers’ Index (PMI) for the UAE.
Strong performance of non-oil activities reason behind GDP growth, says Minister of Economy.
The UAE is on track to deliver its Vision 2021 as a rise in oil revenues and strong performance of non-oil activities led to a 1.7% growth rate in its GDP in 2018 compared to 2017, according to Minister of Economy Sultan bin Saeed Al Mansouri.
The minister cited preliminary macro-economy indexes issued by the Federal Competitiveness and Statistics Authority (FCSA) for 2018.
The UAE Vision 2021 aims to diversify the country’s economy away from oil by developing its non-oil sectors.
FCSA’s statistics show the country’s real GDP increased at real prices (base year 2010) from $386bn at the end of 2017 to over $392 billion in 2018.
Moreover, GDP of non-oil sectors rose 2.9% at current prices and 1.3% at constant prices to $306 million at the end of 2018 compared to the year before.
The oil and gas sector contributed 25.9% to the UAE’s GDP, while retail and whole trade contributed 11.2%, followed by financial services at 9.2%, manufacturing at 8.9% and building and construction at 8.3%, according to statistics.
As for oil activities, they grew 35.1% in 2018 compared to 2017.