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Lubna Highlights Fundamentals of UAE Economy

DUBAI - The UAE Foreign Trade Minister Shaikha Lubna Al Qasimi, has underscored that the UAE is considered one of the advanced open-economy states, which adopts free market and fair competition principles.

“The UAE’s economy is the second largest in the Arab World. It registered positive growth during 2009, reaching 3.1 per cent, raising the GDP to $249 billion. It was supported by the strong non-oil related sectors which contributed 66 per cent of the year’s GDP,” she added, indicating that “this was achieved despite the global economic slowdown.”

Lecturing to a group of business administration school students in Brussels on the UAE’s commercial status and its economic and social development strategy during her current visit to the Belgium, Lubna referred to the UAE’s large commercial openness, where the percentage of foreign trade to GDP reached 173 per cent in 2009, confirming the level by which the world’s economies are interconnected through multilateral commercial ties.

She explained that the UAE’s non-oil foreign trade amounted to $181 billion in 2009, conducted with 202 countries from 7 regions, with Asia leading with 47 per cent, Europe with 23 per cent, America with 8.6 per cent, the GCC States with 8.3 per cent and other Arab countries with 7 per cent.

Shaikha Lubna added that the UAE’s Foreign Trade average growth rate reached around 31 per cent during the period between 2004-2008.

She confirmed that the year 2010 carries with it a positive outlook for business, especially after the UAE’s economy pulled through the effects of the global economic crisis and became better positioned to regain its role in leading the country’s development, growth and progress.

Lubna said that the UAE’s GDP is expected to rise by 3.2 per cent in 2010, adding that despite the challenges which the year 2009 brought on business and the effect the financial crisis has had on the global economy, the economy of the UAE in 2010 appears to be promising and ripe with investment opportunities, which will strengthen its position among the advanced world economies.

Shaikha Lubna said that the UAE enjoys many competitive advantages that makes it the most suitable place to invest.

Of those advantages are its political and economic security, its unique geographic location, its clear laws and simplified procedures and its good economic growth — making it the most economically-diversified country in the region.

She affirmed the measures adopted by the government to confront the Global Financial Crisis contributed towards the national economy’s ability to retain its strength, which in turn led to a clear increase in the level of international confidence in the UAE’s economy.

In 2010 competitiveness report, the World Bank’s Special Business Report, reveals that the UAE was ranked at number three out of the top ten countries carrying out reforms, and it went up by 14 ranks to 33th place in the International Monetary Fund and World Bank “Ease of Carrying out Business Report” of 2010.

Lubna highlighted the country’s social developments, referring to the achievements of UAE women, as a result of the leadership’s strategic insight and its continued support for women to help them achieve advanced position in society.