UAE on a positive growth trajectory

2018 outlook strong as overall GDP grew 0.8% last year while non-oil GDP grew 2.5% in same period

The UAE’s real gross domestic product (GDP) grew 0.8 per cent in 2017, according to preliminary estimates by the Federal Competitiveness and Statistics Authority (FCSA).

“Preliminary estimates issued by the Federal Competitiveness and Statistics Authority indicate growth in the economic performance of the UAE in general; which came as a result of growth in oil resources and rise in international oil prices and growth in non-oil sectors,” Sultan Bin Saeed Al Mansouri, Minister of Economy, said in a statement yesterday.

Economic drivers

He said the UAE’s success in economic diversification, the expansion of the economic production base, and the importance of strategic initiatives and programmes aimed at increasing reliance on non-oil sectors contributed to GDP growth.

Earlier this year, the International Monetary Fund (IMF) revised its 2017 GDP estimates for the UAE to 0.5 per cent, down from a projected 1.3 per cent in October last year. The revision was largely driven by negative growth of 2.5 per cent in oil GDP.

According to IMF estimates, the UAE economy is expected to grow at a rate of 3 per cent next year. For 2018, meanwhile, the UAE’s growth has been projected at 2 per cent, compared to the projections of 3.4 per cent made last October.

For 2018, oil GDP growth is projected remain flat at 2.4 per cent. Non-oil GDP for the country grew at 1.9 per cent last year and is projected to grow at 2.8 per cent and 3.3 per cent respectively in 2018 and 2019.

The data from FCSA show that GDP estimates for 2017 at real prices (base year 2010) amounted to approximately Dh1.42 trillion in the UAE, compared to about Dh1.41 trillion in 2016.

According to preliminary estimates non-oil GDP grew at the rate of 2.5 per cent last year.