UAE maintains its position as second largest Arab economy

The UAE maintained its position as the second largest Arab economy in 2012 after its gross domestic product ( GDP) swelled by $23 billion in current prices, according to a report.

The report by the Washington-based Institute for International Finance (IIF) showed the UAE has remained the second largest Arab economy after Saudi Arabia for more than 10 years because of a steady and rapid growth in its GDP as a result of high public spending, a surge in oil prices and a steady increase in private sector investment.

Media report showed the UAE’s GDP grew to its highest ever level of around $375 billion in current prices last year from $352 billion in 2011, an increase of about 6.5 per cent. The 2012 GDP was more than double its level of nearly $181 billion in 2006.

IIF, which groups major banks in Western countries, said Saudi Arabia remained the largest economy in the region with a GDP of around $640 billion in 2012 mainly because of its massive oil output which reached one of its highest annual averages of 9.8 million bpd last year. The report showed the UAE’s economy accounted for more than a quarter of the GCC”s GDP of $1.482 trillion in 2012 and nearly 14 per cent of the combined GDP of MENA countries. Egypt emerged as the third largest Arab economy with a GDP of around $257 billion, followed by Algeria with $197 billion.