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Sharjah’s GDP Increases 13.2pc to Reach Dh468B

SHARJAH — Ali bin Salem Al mahmoud, Sharjah Economic Development Department (SEDD) general manager stated that the government financial tools and the wise leadership of His Highness Dr Shaikh Sultan bin Mohammed Al Qasimi, UAE Supreme Council Member and Ruler of Sharjah, have significantly contributed to buffer the local economic activities from the impacts of global financial crunch.

This was apparent as the government sector has grown its share of the emirate’s GDP from Dh60.4 billion in 2006 to Dh68.4 billion in 2007, making a 13.2pc growth. The government sector currently accounts for 17.87pc of the overall GDP of the emirate, explained Al Mahmoud.

A statement from SEDD showed that the government services sector has the lion’s share in GDP, and is capable of acting as a corrective force for the economic growth and will show a proven quality performance in government services, gaining the necessary power to guide the economic sector to the desired direction. The emergence of government’s role in practicing the required corrective measures will support the state intervention without destabilising market mechanism. This will be implemented through prohibiting undesired activities and offering privileges to other desired activities to yield in raising the overall demand and increasing the GDP.

The development of service sector and the rising contribution of the government sector in the emirate’s GDP in 2007 act as a necessary buffer to absorb the effects of any regional or global crisis, said the preamble of a SEDD report.

The average annual GDP growth rate of the emirate in 2004-2007 was calculated at 41.7pc according to local statistical data. It grew to Dh68.4 billion in 2007, from Dh30.4 billion in 2004.

The overall GDP of the emirate amounted to Dh68.4 billion in 2007, a 13.2pc growth as compared to figures of 2006, according to federal statistical data.

The share of commodities products sector (agriculture, extractive industry, manufacturing industry, construction, electricity, gas and water) to GDP has grown from Dh13.6 billion in 2004 to Dh24.7 billion, Dh27.7 billion, and Dh29.6 billion in 2005, 2006 and 2007, respectively.

The average annual growth rate of commodities products sector during the period from 2004 to 2007 was calculated at 39.3pc.

The manufacturing industry sector has the lion’s share to commodities products sector’s GDP, posting Dh12.2 billion in 2007, a 41.2pc from the total GDP of the sector amounted to Dh29.6 billion.

The manufacturing industry sector plays a leading role in generating growth, as this industry contributes to boosting economic stability due to its ability to provide a sustainable and renewable source of revenue and job opportunities.

The manufacturing industry increases the added value of the local revenues and represents an important source for transforming technology.

Analysing the structure of the local GDP according to sector, the rising value of local GDP for manufacturing industries was noticeable.

It grew from Dh5.5 billion in 2004 to Dh12.2 billion in 2007, with 40.6pc annual growth rate.

The manufacturing industry accounted for 17.8pc of the emirate’s overall GDP in 2007.

Statistics made on the intermediate goods in Sharjah showed that manufacturing industry sector is the largest consumer of Intermediate goods with 19.2 per cent, followed by government services sector with 18.41 per cent, construction sector 18.11pc and real estate and business sector with 12.43 per cent.

These figures highlight the maximum importance of four major industries which play vital roles in GDP, production and intermediate goods.

The major industries are manufacturing industry, government services sector, construction sector and the real estate and business sector.