Indicators and reports prove UAE's strength and sustainability

Abu Dhabi - Today, the national economy continues to see balanced growth, enhancing competitiveness and overcoming obstacles such as the drop in oil prices.

 The UAE's national economy has grown exponentially over the past few years, despite the country's young age, with great achievements that are in parallel with the nation's overall development.

Today, the national economy continues to see balanced growth, enhancing competitiveness and overcoming obstacles such as the drop in oil prices. The economy is today driven by its own factors, while its productivity foundation is stronger, resilient and diversified. This comes as a result of the country's diversification policy, which has been firmly implemented in line with the guidance of the President, His Highness Shaikh Khalifa bin Zayed Al Nahyan, and His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and under the supervision of His Highness Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Their Highnesses the Rulers and Members of the Federal Supreme Council.
Sultan bin Saeed Al Mansouri, UAE Minister of Economy, said that the country has started reaping the fruits of its economy diversification policy. The policy was successful in moving the economy from its full dependence on a single sector - the oil sector - to depending on multiple industries and resources. The country has also leaped in fulfilling requirements to sustaining economic growth on the long term, while securing development gains, and ensuring high standards of welfare to the Emirati people for future generations. This achievement is the result of the forward-looking vision of the late Shaikh Zayed bin Sultan Al Nahyan, the principal driving force behind the formation of the UAE who saw the important in diversifying the sources of income of the young economy. Today, oil represents 30 per cent of GDP, leaving room to more contribution from other sectors, led by the promising industrial sector which will remain a leading sector in the next transition to an economy based knowledge, innovation and creativity.
Al Mansouri added that the UAE economy is in a strong position to weather through changes and urgent variables such as the drop in oil prices. Oil prices have not affected the country's ongoing development plans and projects.
The minister said that the indicators to the strength of the national economy are today clear. The recent report by the International Monetary Fund also shows that the national economy is growing at a rate twice faster that the eurozone.
Pillars of vital economy
Al Mansouri said that indicators and international reports confirm that the UAE economy is strong, sustainable and dynamic. This outlook was also presented a few months ago by Shaikh Mohammed bin Rashid; he showed a number of the elements of strength in the UAE economy that were instrumental in enabling the economy to move forward in its development plan despite regional and global challenges.
He also affirmed that the UAE has prepared itself from an early stage to face diverse global economic scenarios.
Shaikh Mohammed bin Rashid's message stressed that the UAE is one of the first oil-producing countries in the world that focused on diversifying its economy away from this sector and looked to expand national investments in a number of other sectors. The UAE was able to increase production in these sectors and to rely on these sectors to generate income, stimulate economic growth and generate new jobs.
Figures and indicators
Indicators issued by the UAE Ministry of Economy, as well as reports from the Federal Competitiveness and Statistics Authority, show that non-oil sectors today contribute to more than two-third's to the UAE's GDP. Shaikh Mohammed bin Rashid's message stated that these sectors have become the main stimulator of the overall economic growth. Growth of the overall economy is at 4.6 per cent, while growth in these non-oil sectors have registered a high 8.1 per cent in 2014.
GDP in 2014 reached Dh1,466.9 billion at current prices, while GDP at constant prices reached Dh1,154.8 billion in 2014. Real GDP growth reached 4.6 per cent in 2014 and is expected to growth in 2015 by three to 3.5 per cent.
Non-oil sectors recorded strong growth in GDP at current prices, reaching 8.1 per cent in 2014, and the contribution of non-oil sectors to the national economy reached 68.6 per cent of GDP at constant prices in 2014. This contribution is expected to reach 80 per cent in 2021 through intensive investment in the industrial and tourism sectors, air and maritime transportation, import and re-export as well as through supporting activities based on knowledge economy.
The industrial sector maintains a high contribution rate to GDP at a share close to 15 per cent, which is expected to increase in the coming years. Al Mansouri said that the invested capital in industrial facilities in the country reached Dh127.3 billion, distributed between 6,041 facilities with a total of 433,939 employees. He added that the industrial sector is a main driver to the national economy performance, and an important element to overall development and income sources diversification.
The sector's contribution to GDP is approximately 14 per cent, a continued increase. The investment in the industrial sector is expected to double in the next five years.
Al Mansouri affirmed that the Ministry of Economy is adamant to also transfer technology and knowledge to the industrial sector through experience and experiments researched and conducted by developed industrial countries such as South Korea, Germany, the United States and other countries. He added that the UAE government has supported the sector through the development of advanced infrastructure, laws and decrees that encourage investment in the sector, and developing dedicated cities and industrial compounds at the highest international standards.
Efforts on anti-dumping
The Ministry of Economy continues to place all efforts in the protection of national exports abroad and especially with regard to anti-dumping. Al Mansouri said that the total number of investigations and anti-dumping measures undertaken to protect UAE exports until October 2015 reached 48 cases distributed between 24 dumping and 20 protection against the increase in imports and four supports.
Among the other fees that were terminated during 2015 was the countervailing fee against support that was imposed by the European Commission on the country's exports of polyethylene terephthalate. The European Commission issued on September 29 a decision to end this fee, thus ending the investigation or fee against support on UAE exports to foreign markets.
Al Mansouri said that small and medium businesses, or SMBs, are an ultimate priority to the UAE, which play a vital role in promoting growth, implementing the diversification policy and shifting to a knowledge-based economy driven by creativity and innovation, in an ultimate goal to achieve the UAE 2021 Vision.
He added that there are 350,000 SMBs in the UAE, making up 94 per cent of total companies in the country, and employing 86 per cent of the workforce in the private sector.
These SMBs contribute to 60 per cent to UAE GDP excluding the oil sector. The UAE 2021 Vision targets to increase this contribution to 70 per cent.
Local and international reports agree that the UAE has become a key player in international trade. Upward indicators of foreign trade reflect the trade openness policy pursued by the UAE to diversify the economy.
Non-oil foreign trade has seen constant development during the period from 2004 to 2014 and enhanced the position of the UAE in world trade. When speaking of the UAE's direct trade, foreign trade has continued to grow at an average 15 per cent annual growth, registering record highs with a three-fold increase. In 2004, foreign trade was valued at Dh287 billion and increased to Dh1,072 billion in 2014. The re-export value also saw a remarkable development from 2004 when it amounted at Dh69.5 billion to reach Dh243.7 billion in 2014. Imports also increased from Dh202.9 billion in 2004 to Dh696.4 billion in 2014.
Foreign trade in free trade zones operating in the UAE increased as well from Dh286.5 billion in 2009 to Dh560 billion in 2014. Non-oil foreign trade including free trade zones crossed Dh1,600 billion.
According to official data and statistics, the UAE's non-oil trade amounted to Dh4.876 trillion between 2010 and 2014, divided between Dh3.137 trillion for the value of the country's imports from various countries during the five-year period and Dh647.02 billion in non-oil exports. The value of re-exported goods reached Dh1.091 trillion, significantly reducing the trade deficit gap.
Commercial exchange has also seen growth in the last five years, with non-oil commercial exchange increasing from Dh754.4 billion in 2010 to Dh1.072.4 trillion in 2014.
The country's imports index during the five years mentioned rose from Dh485.4 billion in 2010 to Dh696.4 billion last year. Non-oil exports value increased as well, from Dh83.1 billion in 2010 to Dh132.2 billion in 2014.
Re-export trade registered consecutive increases in value, from Dh185.9 billion in 2010 to Dh243.7 billion in 2014.
Cumulative value of direct foreign investment in the UAE crossed Dh115 billion at the end of 2014, and is expected to increase to Dh126 billion by the end of this year.
Al Mansouri stressed that the ministry and parties involved in the Federal Government are committed to the development of the economic regulatory environment in line with the vision of the UAE's leadership. The aim is to raise the level of competitiveness and achieve one of the main objectives on the National Agenda: to reach 10th place on the global competitiveness index.
He added that the UAE also targets to reach first place worldwide in the ease of doing business index.
The minister said that commercial control management is a vital arm in anti-fraud measures in all markets, in preventing sale of counterfeit goods to preserve intellectual property rights and in preventing goods violating local laws, beliefs and values from entering the country. He added that the Consumer Protection Division has organised around 5,022 inspection rounds and issued 441 violations. The division also launched awareness campaigns and held workshops in consumer and retailer rights.
The Ministry of Economy gives the utmost importance to protect consumers by ensuring the consumer rights law is implemented by conducting programs and abiding by policies that drive the stability of essential commodity prices and maintain market balance in order to maintain inflation of prices at an acceptable level. The ministry has therefore signed partnerships with cooperative societies, supermarkets and media channels to raise awareness and rationalize consumption in order to effectively keep inflation index prices of basic consumer goods within acceptable limits.
The Ministry of Economy also continued to play a vital role in strengthening economic relations with the Gulf, Arab and international partners so as to enhance the country's position on the regional and international economy roadmap.
100% smart services
The Ministry of Economy succeeded in record time in turning its main services to fully-smart services in an aim to make services provided by the government easier, faster and simpler for users. The report issued by the Telecommunications Regulatory Authority showed that the Ministry of Economy has reached a 100 per cent ration in turning its main services into smart services for to better serve individuals, business owners and companies.