UAE ready to deal with cheaper oil — Ahmad

Country derives only 30% of its GDP from oil and gas output and has diversified sources of income

The UAE is well prepared to deal with falling oil prices due to its diversified sources of income, and not relying on oil alone, said Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman and Chief Executive of Emirates airline and Group and Chairman of the Dubai Supreme Fiscal Committee.

The UAE derives about 30 per cent of the country’s gross domestic product from oil and gas output, prices of which witnessed volatile swings late last year. Brent crude has shed more than 40 per cent from a high of more than $100 per barrel since last year.

“The UAE, as an oil producing country, will logically be affected by falling oil prices in the global market, but the UAE is well prepared to deal with any changes,” Shaikh Ahmad said in a statement issued yesterday after a seminar organised by the Dubai Economic Council on February 23.

The UAE has about 10 per cent of the total world supply of proven crude oil reserves.

Yesterday, Brent crude for March delivery rose more than a per cent to $59.25 per barrel after the Saudi minister said that oil demand is growing. “Markets are calm now ... demand is growing,” said Saudi oil minister Ali Al Naimi, who was behind a change in the strategy of the Organization of Petroleum Exporting Countries last year, when it decided not to adjust production despite a sharp fall in oil prices. The UAE was able to set such a unique model by harnessing the capabilities of sectors, high value-added activities and providing a business and investment friendly environment, Shaikh Ahmad said.

The UAE has also established its position as a major centre for trade, tourism and investment, which represents about 24 per cent of the GDP.