Introduction:

A close look at the course of economic development in the United Arab Emirates (UAE) yields an unquestionable fact that relevant achievements have not been the outcome of plentiful sources of financing only, but also determination, strong will and good governance in terms of channeling sources into appropriate objectives. Over the last few decades, the national economy has been capable of achieving positive growth rates thanks to world-class infrastructure, flexible economic legislations and investment-friendly environment. Further, the national economy has managed to move gradually from an oil-based economy to a diversified one where non-oil manufacturing and service sectors account now for more than two thirds of the Gross Domestic Product (GDP); a fact that is reflected in the luxurious standards of living enjoyed by UAE nationals whosecountry makes a top rank on world Welfare list. Today, we are about to embark on a new race for excellence and creativity which require collectively concerted efforts and good channeling of financial and human resources available into building a knowledge-based competitive economy built on investment in national human resources, attraction of excellent talents, development of institutional work and the legislative economic infrastructure, enhancement of public-private partnership and achievement of national and international institution partnerships to attract investment and localize technology since these are the mainstays for a more competitive ability of the UAE to ensure sustainable development. Having proven its ability to address crises and respond positively to all international and regional variables, it is expected for the national economy to keep stable and win more growth rates and momentum. The present Report sheds light on developments of the national economy over 2010, and provides researchers and specialists with information on macro-achievements realized in UAE economy to which we hopefully will add to ensure more progress and welfare. May God help all of us to achieve prosperity and progress for the UAE

Eng. Sultan bin Saeed Al Mansouri

Minister of Economy 2 3

Table of Contents
Page No.

Firstly: World Economic Developments Secondly: GCC Economic Developments Thirdly: UAE Economic Developments
1. Economic Growth 2. Donestic Investments 3. Inflation 4. Public Finance 5. Financial Institutions 6. Foreign Trade 7. Foreign Direct Investment (FDI) 8. Population and Labor Force

9 10 12 12 19 23 36 26 29 32 34 36 36 39 40 51

Fourthly: Economic Issues

Knowledge Economy

Fifthly: Economic Predictions Sixthly: Statistical Appendix

List of Table
Page No.

List of Figures
Page No.

1. World Economic Growth Rates 2. GCC Countries Real Economic Growth Rates 3. Share of Oil and Non-Oil Sectors in Real GDP (2009-2010)
4. Share of Oil and Non-Oil Sectors in Real GDP Growth (2009-2010)

9 11 12 13 14 16 18 19 20 21 23 25 27 28 28 30 32 33 34 35
1. Share of Oil and Non-Oil Sectors in Real GDP Growth (2009-2010)

13

2. Share of Economic Activities in Real GDP Growth (2009-2010) 3. Share of Final Consumption, and Total Investments, and Net External Demand in Real GDP Growth (2009-2010) 4. Breakdown of Total Investments (at Current Prices) by Economic Sectors (2009-2010) 5. Breakdown of Total Investments (at Current Prices) by Economic Activities in (2009-2010) 6. Share of CPI Groups in Overall Inflation Rate (2009-2010) 7. Share of Oil Revenues in Total Public Revenues (2008-2010) 8. Foreign Trade Developments (2009-2010) 9. Percentage Breakdown of FDI by Economic Activity - 2010

17 29

5. Economic Activities Contribution to Real GDP (2009-2010) 6. Share of Economic Activities in Real GDP Growth (2009-2010) 7. Share of Demand Components in Real GDP Growth 8. Total Resources and Uses in Constant Prices (2009-2010) 9. Gross Fixed Capital Formation by Economic Activities in Current Prices (2009-2010) 10. Share of Economic Sectors in Gross Fixed Capital Formation 11. Share of CPI Groups in Overall Inflation Rate (2009-2010) 12. Consolidated (2009-2010) Fiscal Balance of the Federal Government

18

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13. Monetary Developments (2009-2010) 14. Banking Developments (2009-2010) 15. Financial Market Developments (2009-2010) 16. Foreign Trade (Goods and Services), 2009-2010 17. Merchandise Foreign Trade Developments (2009-2010) 18. Non- Oil Foreign Trade Developments (2009-2010) 19. FDI Flows (2009-2010) 20. UAE Population by Gender (2009-2010) 21. UAE Labor Force Key Indicators by Gender (2009-2010)

26 31 33

Statistical Appendix
Page No.

Firstly -World Economic Developments:

The world economy has achieved a 5.1 % growth rate in 2010, compared to 0.5 % in 2009. Economic performance indices have improved in advanced countries, particularly Germany, France, Japan and the United States. Emerging and developing economies have been in likewise as capitals poured into them.

1. UAE Key Economic Variables 2. GDP (at current Prices) by Economic Activity 3. GDP (at 2007 Prices) by Economic Activity 4. GDP Structure (at 2007 Prices) by Economic Activity 5. Gross Fixed Capital Formation 6. GDP Growth (at 2007 Prices) by Economic Activity 7. GDP Growth (at current Prices) by Economic Activity 8. GDP (at current Prices) by Expenditure 9. GDP (at 2007 Prices) by Expenditure 10. GDP (at 2007 Prices) by Economic Sector 11. GDP Growth (at current Prices) by Expenditure 12. GDP Growth (at 2007 Prices) by Expenditure

41 42 43 44 45 46 47 48 49 50 51 52

Table 1 World Economic Growth Rates

World GDP Advanced Countries Emerging and Developing Countries
Source: World Economic Outlook, June, 2011 - IMF

2009 - 0.5 - 3.4 2.8

2010 5.1 3.0 7.4

Asian emerging countries, China and India, led the economic recovery trend over 2010 with a growth rate of nearly 10.3 % and 10.4% respectively. Emerging industrial Asian countries have achieved high growth rate of 8.4 %. Further, the Association of Southeast Asian Nations (ASEAN) achieved a positive growth rate of 6.9 %. Economic recovery over 2010 has been in line with 12 % increasing world commodity and services trade volumes after an 11 % decline in 2009. The said increase covered all economies; i.e., advanced, emerging and developing. Advanced countries export growthhit nearly 12 %, but 12.8 %for emerging countries. Imports by advanced countries reached nearly 11.6 %, but 12.3 % by emerging countries. Inflation rates over 2010 have been on the rise across all advanced economies save Japan which had negative inflation rates. US inflation rate went up to 1.6 % over 2010 compared to -0.3% over 2009. Inflation rate in the Euro Zone moved from 0.3 % to 1.6 %, however. In 2010, current accounts improved world wide after massive decline in 2009 due to slowing world trade and effects of the world financial crisis. According to IMF estimates, Current Account Balance for all world countries have

moved up to 282.6 billion in 2010 compared to 225.5 billion in 2009. In advanced countries, current account balance deficit moved back to 95.5 billion from 101.1 billion last year. The same held true for the EU where the deficit backed from 39.6 billion to 22.3 billion; i.e., by 43.7 %. current account balance surplus for emerging and developing countries moved up from 326.6 to 378.1 billion. World unemployment rates featured high levels in 2010 across most advanced economies. In the United States, for example, unemployment rate moved up from 2009s 9.3 % to 9.6 % in 2010. Similarly, the Euro Zones unemployment rates hit 10 % compared to 9.5 % in 2009; a clear reflection of corresponding high unemployment rates in some EU countries.

Table 2 GCC Countries Real Economic Growth Rates (2009 2010)

Qatar Saudi Arabia Bahrain Kuwait Oman UAE Country 2009 8.6 0.6 3.1 - 5.2 1.1 - 1.6 2010 16.3 3.7 4.1 2.0 4.2 1.4

Secondly:GCC Economic Developments

Arab economies improved significantly over 2010 compared to the significant 2009 decline. Yet, performance of these economies varied according to how related or involved they have been with the world economy which accounted for how badly affected by the financial crisis they came to be. Other varying factors included economic procedures and policies taken by respective governments to protect economic activities, and how much financial surpluses and safe investments these economies had. For GCC countries, Real Growth Rate moved up to 5 % in 2010 compared to 0.2 % in 2009. Increasing public revenues, triggered by rising crude oil prices over 2010 thanks to increasing demand from Asia which experiences high growth rates, contributed to economic recovery and enhanced growth in non-oil sector, thus getting over ramifications and negative impacts of the world financial crisis. GCC countries production capacities amounted to 15 million barrels in 2010. GCC countries expenditure on projects hit $ 1.3 trillion, covering several sectors such as oil, gas, transport, construction, industry, electricity, water desalination, roads and infrastructure.

Source: World Economic Outlook, June, 2011 IMF, National Bureau Satistics

Most GCC countries achieved positive growth rates in 2010 compared to negative or moderate rates (save Qatar and Bahrain) of 2009. Inflation rates in most GCC countries moved down in 2010 to continue their down trend that started in 2009 because of the world financial crisis. In the UAE, the inflation rate moved to 0.9 % from 2009s 1.6 %, from 3.5 % to 3.2 % in Oman, from 4.1 % to 4.0 % in Kuwait and from 2.8 %to 2.0 % in Bahrain. Yet, in Saudi Arabia, it moved up from 5.1 % to 5.4 % and in Qatar from (16.3 %) to (2.4 %). 2010 experienced a big improvement in GCC countries thanks to increasing oil exports backed up by rising oil prices, production and non-oil trading activities. According to IMF estimates, surpluses increased across GCC countries in 2010. As part percentage of GDP, Kuwaiti moved up to 31.8 % compared to last years 26.1 %, in Qatar to 18.7 % from 10.2 %, in Saudi Arabia to 8.7 % from 6.1 % and in the UAE to 7.7 % from 3.0 %. In Bahrain and Oman, however, balance-of-trade surplus moved up to 4.16 and 11.6 % from 2.9 % and 0.6 % of the GDP, respectively.

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Thirdly: UAE Economic Developments

1. Economic Growth UAE economy is one of the largest emerging economies in the region as it ranks second to the Saudi economy. Despite the economic crisis, which is still casting shadows on most economies worldwide, UAE economy has been gradually recovering as reflected in 2010 growth rates, with a Real Domestic Product of 1.4 % compared to a negative 1.6 % in 2009, i.e., realizing a AED 977.3 billion Real Domestic Product compared to 2009s AED 963.5. on the supply side wise, the said growth has been propelled mainly by higher growth achieved by non-oil sectors, with their GDP moving from 2009s AED 638.6 billion (66.3 % of the GDP) to 2010s 670.5 billion (68.6 % of the GDP), compared to the oil sector which amounted to AED 306.8 billion (31.4 % of the GDP in 2010) and AED 324.9 billion in 2009 (33.7 % of the GDP) as pointed out in Table 3 below.

As for growth rates in each respective sector, the non-oil sectors achieved a 5 % growth rate in 2010 compared to (-4.2) Percentage Point in 2009, thus taking their Real Domestic Product contributions up to 3.3 Percentage Point (compared to (-2.8) Percentage Point in 2009). In turn, the oil sector achieved a negative growth rate of 5.6 % compared to 2009s 3.9 %, with a clear reflection to its 1.9 Percentage Point negative contribution to the Real GDP as explained in Table 4 and Figure 1.

Table 4 Share of Oil and Non - Oil Sectors in Real GDP Growth (2009 2010)
Item Real Growth Rate: - Non-oil sectors - Oil sector
Source: Ministry of Economy UAE

Annual Growth Rate ( %)

2009 2010

Contribution to Annual GDP (Percentage Point)

2009 2010

- 1.6 - 4.2 3.9

1.4 5.0 - 5.6

- 1.6 - 2.8 1.2

1.4 3.3 - 1.9

Table 3 Share of Oil / Non - Oil Sectors in Real GDP (2009 2010)
AED Billion

Item
GDP: Non-oil sector GDP Oil sector GDP Non-oil sector share in GDP Oil sector share in GDP
Source: NBS, Ministry of Economy UAE

2009
963.5 638.6 324.9 66.3 % 33.7 %

2010
977.3 670.5 306.8 68.6% 31.4%

Figure 1 Share of Oil and Non - Oil Sectors in Real GDP Growth (2009 2010)
( Percentage Point )

Oil Sector Contribution to Real Domestic Product

Non-oil Sectors Contribution to Real Domestic Product

12

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Considering the relative importance of economic activities, such activities have not changed materially in 2010 compared to 2009. Commodity Activities Groups witnessed a limited decline in 2010 to 56.3 % from 2009s 57.5% as reflecting the tiny decline in the oil sector (31.4% compared to 33.7%). These include higher contributions by construction, manufacturing, electricity, water and gas to 2010 GDP by 11.8 %, 9.6% and 2.6 % respectively compared to 11.0%, 11.0 and 2.3 % in 2009. For their part, the Service Activities Groups contributed with higher rates to the GDP in 2010 by 43.7% compared to 2009s 42.5 %. Excluding the financial projects, shares of other service activities in GDP moved up in 2010 compared to 2009, while the shares of the service & governmental and household service activities remained the same in terms of GDP contribution in 2010 compared to 2009.

Table 5 Economic Activities Contribution to Real GDP Growth (2009 2010)

Economic Activity
Social and personal services Financial project sector Gov. service sector Household services

Value
20483 64608 41937 42017 3868

2009 *

2.1 6.7 4.4 0.4 4.4

2010 * * Value %
22580 64980 43361 42092 3555

2.3 6.6 4.4 0.4 4.3

Minus: banking services calculated

Table 5 Economic Activities Contribution to Real GDP Growth (2009 2010)

Economic Activity
Total Commodity Activities: Agriculture, animal & fish resources Crude oil and natural gas Quarries Manufacturing Electricity, gas and water Construction Total Service Activities: Whole / retail trade & maintenance services Restaurants and hotels Transport, warehousing and communications Real estate and business services

Total Commodity & service activities

Source: National Bureau Statistics * Preliminary * * Estimates

963530

100.0

977329

100.0

2009 * Value
553719 8177 324930 1643 90680 22440 105850 409811 124270 15962 87994 92705

2010 * * %
57.5 0.8 33.7 0.2 9.4 2.3 11.0 42.5 12.9 1.7 9.1 9.6

Value
550126 7834 306808 1780 93459 25324 114921 427202 130194 17667 91816 95141

%
56.3 0.8 31.4 0.2 9.6 2.6 11.8 43.7 13.3 1.8 9.4 9.7

On the Supply Side, the key sectors in terms of positive contributions to higher economic growth rate are construction, which achieved a 8.6% growth rate compared to 2009s 1.3% with a total Real Domestic Product contribution of 0.9 Percentage Point compared to 0.1 Percentage Point in 2009, followed by the whole & retail trade and maintenance service sector, which grew by 4.8 % compared to a negative 8.4% in 2009 with a 0.6 Real Domestic Product contribution compared to a negative 1.2 Percentage Point in 2009, then by transport, warehousing and communications sector, which achieved 4.3 Percentage Point rate compared to 2009s 2.8% with total contribution of 0.4 Percentage Point compared to 2009s 0.2 Percentage Point, and finally by the manufacturing sector which made a 0.3 Percentage Point contribution to Real Domestic Product compared to 2009s -0.4 Percentage Point. For the electricity, gas and water sector, it achieved an 11.1% growth with a total Real Domestic Product contribution of 0.3 Percentage Point, while the contributions of the restaurant and hotel, the real estate &business services and the social &personal services sectors to GDP were restricted to 0.2 Percentage Point per sector. Yet, the governmental services sector achieved 0.1 Percentage Point only. Contribution of crude oil and natural gas was negative, specifically 1.9 Percentage Point. Nor did the agriculture, animal and fish resources, the financial projects and the household services sectors make any significant contributions to the Real Domestic Product (i.e., almost zero). 15

14

Table 6 Share of Economic Activities in Real GDP Growth (2009 2010)

Sector Growth Average Contribution to Real Domestic Product (Percentage Point)
Percentage Point
Agricultre, animal and fish resources Crude oil & natural gas Quarries Manufacturing Electricity, gas and water Whole / retail trade and maintenance services Transport, warehousing and comm. Social and personal services Financial project sector Real estate and bus.services Cconstruction

Figure 2 Share of Economic Activities in Real GDP Growth (2009 2010)

Economic Activity
Total Commodity Activities: Agriculture, animal & fish resources Crude oil and natural gas Quarries Manufacturing

2009
2.2 - 0.8 3.9 - 3.8 11.1 1.3 - 6.4 - 8.4 - 12.8 2.8 - 18.7 5.7 - 6.0 21.5 - 2.9 - 1.1 - 1.6 0.9

2010
- 0.6 - 4.2 - 5.6 3.1 8.6 4.2 4.8 10.7 4.3 2.6 10.2 0.6 3.4 - 8.1 0.2 1.4 8.3

2009
1.2 0.0 1.2 - 0.4 0.2 0.1 - 2.8 - 1.2 - 0.2 0.2 - 2.2 0.1 - 0.4 0.8 0.0 0.0 - 1.6 0.0

2010
- 0.4 0.0 - 1.9 0.3 0.3 0.9 1.8 0.6 0.2 0.4 0.2 0.2 0.0 0.1 0.0 0.0 1.4 0.0

Restaurants and hotels

Electricity, gas and water Construction Total Service Activities: Whole / retail trade & maintenance services Restaurants and hotels Transport, warehousing and communications Real estate and business services Social and personal services Financial project sector Gov. service sector Household services Minus: banking services calculated Total Commodity & service activities
Source: Ministry of Economy UAE

12.9

Gov. services sector

On the demand-side, data indicate better economic performance in 2010; a trend mainly ascribed to higher total investment contribution inclusive of variation in stock which amount, at 2007 prices, to AED 255.5 billion with growth rate of 15.0 % compared to a 5.6 % decline in 2009. Thus, this contribution to GDP rose to 2.2 Percentage Point compared to a negative contribution of 1.4 Percentage Point in 2009. However, contribution of final consumption (public and private) to the negative growth rate amounted to 1.2 Percentage Point, and the same held true for net exports the negative contribution of which hit 0.7 Percentage Point.

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Table 7 Share of Demand Activities in Real GDP Growth (2009 2010)

Annual Growth Rate( %) 2009
- 5.2 - 1.6

Table 8 indicates total resources and uses over the 2009 2010 period at constant prices.

Table 8
Contribution to Real GDP (Percentage Point) 2009 2010
- 5.0 - 1.6 2.1 1.4

Total Resources and Uses in Constant Prices (2009 2010)

2009
963.5

Item
Real Domestic Product Growth

2010
2.3 1.4

Resources: GDP Commodity & Service Imports Total resources

2010

AED billion

a. Final Consumption Private Public

Local demand

- 5.1 32.1

- 8.5 - 5.6 - 7.0 85.0

1.8 0.1

2.1 14.7 5.8

- 3.7 1.9

- 5.6 - 1.4 - 5.5 3.4

- 1.2 0.01 3.3

- 1.2

Uses:

1610.7 590.0 668.3 78.3

647.2

977.3

1673.2 577.7 656.1 78.4

695.9

b. Capital Formation *

Final private consumption Final public consumption Total final consumption

b. Commodity and Service Imports

* Including change in stock.

a. Commodity and Service Exports

2. Net External Demand

- 9.4 7.5

- 0.7 5.0 4.3

- 11.9

- 8.9

Investment expenditure *

Total uses

Commodity & service exports

222.6

1610.7

719.8

255.4

1673.2

761.7

Figure 3 Share of Final Consumption Total Investments and External Demand in Real GDP Growth (2009 2010)

* Including of change stock.

2. Local Investments One of the major reasons behind economic recovery and progress and more active markets after the negative impacts of the world financial crisis is the expanding local investment expenditure, which grew from 2009s AED 221.3 billion to 2010s AED 260.2 billion, with a 17.6% growth rate (Table 9, Figure 4 below). According to Table 9, private contribution to total investments moved up to 63.7% in 2010 compared to 59.4% in 2009, with a total of AED 165.8 billion in 2010 after 2009s AED 131.4 billion and a growth rate of 26.2 %. Yet, this came at the expense of a declining governmental sector to 10.7%, compared to 12%, and a declining public sector to 25.6% compared to 28.6% of the total investments.

Net exports

Investment

Final Consumption

18

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Table 9 Gross Fixed Capital Formation by Economic Activities in Current Prices (2009 2010)
2009
Value Contri-

Item Total capital formation Governmental sector Public sector Private sector
Soure : NA

2010
Value

A close look at the Total- investment division by economic sector activities yields concentration in non-oil sectors in a clear reflection of the economic diversification policy. These top share Total- investment sectors were headed by governmental and real estate sectors, followed by the manufacturing, electricity, gas & water, and transport and communications sectors (see Table 10). Growth % 17.6 4.9 5.1 26.2

221.3 26.6 63.3 131.4

bution %

Contribution %

100 12.0 28.6 59.4

260.2 27.9 66.5 165.8

100 10.7 25.6 63.7

Table 10 Share of Economic Sectors in Gross Fixed Capital Formation

2009 Item
Agriculture, animal & fish resources Value 0.9 Contribution % 0.4 9.1 13.7 11.9 6.2 4.6 1.6 12.4 16.6 3.9 1.3 0.1

2010
Value 1.0 0.3

Contribution % 10.0 14.0 6.2 4.4 1.6 12.1 15.5 4.1 1.2 11. 0.1 0.4

Growth %
11.1 0

Figure 4 Breakdown of Total Investment (at Current Prices) by Economic Sectors (2009 2010)
AED billion

Crude oil and natural gas Quarries Manufacturing Construction

20.1 30.3 13.8 10.2 3.5 27.4 36.7 8.6 2.9 26.4 0.3

26.1 36.3 16.2 11.5 4.2 31.6 10.7 45.2 3.2 40.3 33.5

29.9 19.8 26.9 17.4 12.7 20.0 15.3 24.4 9.8

Electricity, gas and water

12.9

Restaurants and hotels

Whole / retail trade & maintenance services

Transport, warehousing and communications Social and personal services Financial project sector Gov. service sector Total Growth Fixed capital formation Private sector Public sector Gov. sector

Real estate and business services

221.2

40.1

18.1 100

260.2

17.4

10.3 17.6 12.7

Source: National Bereau Statistics.

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This came in line with the UAE economic policy objectives that aim at higher contribution of such sectors, particularly the manufacturing sector, to the GDP, better exportation, and resumption of work in major strategic projects. The data in the said Table indicate higher shares for the manufacturing, energy, construction, restaurant and hotel, transport and communication, real estate, and business services sectors in investments to hit AED 162.2 billion in 2010 compared to AED 138.1 billion in 2009, thus claiming 62.3 % of the total investments.

The oil and gas sector seized 10 % of total investments in 2010, reflecting the national trend to increase production capacity in the future with a view to meeting international market needs and supporting this sector with technological developments in the fields of exploration and extraction. So, this sector ranked first between economic sectors in terms of investment increase which moved up from AED 20.1 billion in 2009 to AED 26.1 billion in 2010 with a YoY increase of 29.9 %. 3. Inflation Inflation decelerated in 2010 as per the Consumer Price Index to hit 0.9 % compared to 2009s 1.6 %; a decline mainly ascribed to lower contribution by the communication group (- 0.36) Percentage Point in 2010 compared to 0.2 Percentage Point in 2009) and the housing group (- 0.12) Percentage Point in 2010 compared to 0.16 Percentage Point in 2009).

Figure 5 Breakdown of Total Investments (at Current Prices) by Economic Activities in (2009-2010)
AED billion

Table 11 Share of CPI Groups in Overall Inflation Rate (2009 2010)

Contribution %
13.9 0.2 7.6 39.3 4.2 1.1 9.9 6.9 3.1 4.0 4.4 5.3 100

Expenditure Group
Real estate & bus. services manufacturing
Electricity, gas & water

Inflation Rate ( %)
2009 0.80 10.66 - 4.77 0.41 6.16 - 1.48 4.78 3.16 - 0.80 9.86 4.87 3.23 1.56 2010 4.45 1.26 - 4.96 - 0.30 4.67 - 0.87 3.38 - 5.79 4.72 8.08 0.88 1.41 0.88

Contribution to Inflation (Percentage Point)

2009 0.12 0.02 - 0.39 0.16 0.25 - 0.02 0.45 0.20 - 0.02 0.38 0.24 0.17 1.56 2010 0.64 0.00 - 0.38 - 0.12 0.20 - 0.01 0.33 - 0.36 0.13 0.34 0.04 0.08 0.88

Transport, warehousing &comms.

Crude oil and N. gas

Construction

Whole / retail trade and main.services

Social and personal services

Restaurants and hotels

Financial project sector

Agriculture, animal and fish resources

Quarries

So committed to providing the best services, particularly in the education and health domains as going in line with the federal governments strategic objectives,and to the knowledge-based economy transformation, the UAE witnessed larger investments in the governmental sector services that reached AED 45.2 billion in 2010 compared to AED 40.1 billion in 2009, thus bringing up the lead of most investmentattracting sectors over 2010 with a 17.4 % of total investments. Electricity, gas and water ranked second in terms of investment attraction between 2009 and 2010 as amounting to 26.9 % to meet development and population growth needs, followed by restaurants and hotels by a 20.6 % growth, manufacturing by a 20 % growth, construction by 17.4 %, and transport, and finally by warehousing and communications with 15.3 %. 22

Gov. services sector

Food & non-alcoholic beverages Alcoholic beverages and tobacco Clothing and footwear Housing, water, electricity & gas Equipment & housing devices Health services Transport services Communications Recreation and culture Education Restaurants and hotels Miscellaneous goods & services Inflation rate

23

Clothes and Foot wear recorded a negative inflation rate of (-4.96%) in 2010 compared to 2009s 4.77 %, thus contributing to the declining inflation with 0.38 Percentage Point. The same held true for communications as hitting a negative inflation rate of (-5.79 %) compared to 2009s 3.16 and contributing to the declining inflation with 0.36 Percentage Point. As for the food Group, it witnessed a positive inflation of 4.45 % in 2010, contributing with 0.64 Percentage Point to the 2010 inflation rate. Alcoholic beverages and tobacco hit an inflation rate of 1.25 % in 2010, compared to 2009s 10.66 %. Inflation rate of the equipment and household devices Group moved back to 4.6 compared to 2009s 6.16 %, thus contributing less to the inflation rate with 0.2 Percentage Point compared to 0.25 Percentage Point.

Recreation and culture hit a higher inflation rate in 2010 up to 4.72 % compared to a negative inflation of 0.80 % in 2009, thus contributing with 0.13 Percentage Point to the total inflation rate. Education, however, realized a positive inflation rate of 8.1 %, contributing to the total inflation rate with 0.34 Percentage Point. 4. Public Finance The government assumes an effective role in economic trends of all other sectors. Government expenditure volume affects activities across the society. Thus, the public budget, in terms of both revenues and expenditures, reflects the current economic outlook as regards recession and/or recovery. Public finance suffered largely from the world financial crisis and the massive cutbacks in oil revenues in 2009 compared to recent years. State revenues were affected accordingly considering the fact that such resource still plays a key role in the regions economy. Budget deficit came to the surface in 2003 after years of budget surpluses.

Figure 6 Share of CPI Groups in Overall Inflation Rate (2009-2010)

Various commodities & services Restaurants and hotels Education Entertainment & culture Commuications Transport services Health services Equipment & household devices Housing, water, electricity & gas Clothes and Foot wear Alcoholic beverages & tobacco Foods & non-alcoholic beverages

Table 12
Consolidated Fiscal Balance of the Federal Government (2009-2010) Item 2009 2010
329 315

Final deficit

Total expenditure

Total revenues

Percentage of Defiate to GDP

Source: IMF Report on UAE, May, 2010

(12.9%)

(124.7)

375.6

250.9

Change ( %)
(12.4) (88.8) (-) 25.5

(1.4%)

(14)

Health services, by turn, recorded a negative inflation rate of 0.87 % in 2010, compared to 2009s 1.48 %. Transport inflation decelerated to 3.38 % compared to 2009s 4.78 %, thus featuring a lesser contribution to the total rate with 0.33 Percentage Point, compared to 2009s 0.45 Percentage Point.

In 2010, UAE Consolidated made a significant improve due to higher oil revenues by 37.4 %. In turn, public expenditure declined by 12.4 %. Public revenues, however, rose by 25.5 %. This is reflected in the final budget deficit which went down by 89 % to hit AED 14 billion.

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Figure 7 Share of Oil Revenues in Total Public Revenues (2008-2010)

AED billion

/authorities through which the banking sector managed to meet the needs of other economic sectors; a trend that worked good in realizing positive economic growth rates in 2010. The financial institution sector achieved a 3.4 % growth rate in 2010, with sectorbased demand moving up to AED 74.3 billion compared to AED 71.8 billion in 2009. It is expected for the same sector to achieve positive results over the years to come due to higher oil prices and public expenditure. This will boost liquidity at the banking sector and, subsequently, activities of other sectors. 5.1 Monetary Developments Money supply (M1) rose by 4.2 % to hit AED 232.9 billion in 2010 compared to 2009s AED 223.5 billion. Further, money supply (M2), which involves quasi money in addition to M1, rose by 6.2 % from 2009s AED 740 billion to AED 786.4 billion in 2010. Yet, money supply (M3), which represents the total local liquidity as it cover M2 plus governmental deposits, moved up by 3.9 % to reach AED 985.2 billion compared to AED 947.8 billion. Liquidity ratio to GDP, however, moved back from 95.5 % in 2009 to 90.1 % in 2010.

Oil revenues

Public revenues

Oil revenues accounted for 75.9 % of the UAEs total public revenues in 2010. Non-oil revenues, however; i.e., customs, interests, taxes, investment income and fees, accounted for 24.1 %.UAE is keen on boosting non-oil revenues to avoid dependence of public budget on oil receipts. If it is normal for public expenditures to Finance with a view to better economic life during the world financial crisis, such increase, if progressively regular, would be reflected in budget deficit. Hence, the UAE adopted an expenditure rationalization policy over 2010 while observing better economic activities. Statistics indicate slashes in public expenditure by 12.4 % compared to 2009. Save for current expenses (that include salaries and production needs necessary for running government activities), which grew by 13.6 %, it is clear that public expenditure structure scaled down in 2010, including foreign aids, loans, grants and developmental expenses. 5. Financial Institutions Financial Institutions sector is one of the most sensitive economic sectors to local as well as international economic developments as it reflects, through monetary policies, the economic activity across all other economic sectors. While this sector in the UAE managed to be resilient to impacts of crises. This became true through financial and monetary policies adopted by the government and monetary 26

Table 13 Monetary Developments (2009 2010)

Item Money supply (M1) Money supply (M2) Money supply (M3) 2009 223.5 740.6 947.8 2010 232.9 786.4 985.2
(AED billion)

Source: Central Bank of the UAE

Growth Rate 4.2 6.2 3.9

5.2 Banking Developments UAE total commercial bank assets rose by 5.7 % to hit AED 1606 billion by late 2010 compared to 2009s AED 1519 billion. Meanwhile, citizen-driven deposits with commercial banks rose as well by 6.8 % to AED 1050 billion compared to 2009s AED 982.6 billion. Bank loans moved up by 1.3 % in 2010 to reach AED 1031.3 billion from 2009s AED 1017.7 billion. Loan to deposit ratio moved back to 0.98 in 2010 compared to 1.04 in 2009; i.e., by a 3.0 % decline. This reflects how cautious the banks still are in their loan policies.

27

Table 14 Banking Developments (2009 2010)

(AED billion)

P/E ratio in 2010 (equals share price divided by share profit earned by an investor) at Abu Dhabi Securities Exchange 12.4 times, but 46.1 times at Dubai Financial Market. Growth Rate 5.7 6.8 1.3 3.0 6. Foreign Trade 6.1 Total Trade Volume Following a decline in some of these sectors in 2009, foreign trade, at both the commodity and service levels including oil, gas, free zone exports and service trade headed by transport, communications, insurance and tourism, realized (atcurrent prices) a 12 % growth in 2010 as moving up from about AED 1429.0 million to AED 1603.5 million. Some commodity and service exports rose by nearly 14.9 % to hit AED 851.9 billion in 2010 compared to 2009s AED 741.7 billion. However, commodity and service imports moved up as well by 9.4 % due to continuing positive growth rates of national economy. Accordingly, they moved up from AED 687.3 billion to approximately 751.6 in 2010. Thus, the commodity and service balance, which stands for the net current balance, achieved an AED 100 billion surplus; with a growth rate of 84.4 %.

2009 Total assets Total deposits Loans Loan to deposit ratio

Source: Central Bank of the UAE

2010 1,605.6 1,049.6 1,031.3 0.98

1,519.1 982.6 1,017.7 1.04

5.3 Financial Market Developments Financial markets were the most affected categories by the impact of local and international economic crises. According to relevant indices, these markets still suffer from the recent financial crisis as general share price index moved down from 2771.6 in December, 2009 to 2655.3 in December 2010. Similarly, the market value of tradable shares moved down from AED 404.7 billion in December, 2009 to AED 385.4 billion in December, 2010 with a decline by 4.8 % reflecting how cautious investors came to be.

Table 15 Financial Market Developments (2009 2010)

2009 No. of listed companies Stock Market index Market capitallization (AED billion) P/E ratio: Abu Dhabi Securities Market Dubai Financial Market
Source: Securities & Commodities Authority

Table 16 Foreign Trade (Goods and Services), 2009-2010

2010 128 2655.3 385.4 12.4 46.1

133 2771.6 404.7 12.4 -

Source: National Bereau Statistics.

Total commodity & service trading Commodity & service exports Commodity & service imports Current account balance

2009 1429.0 741.7 687.3 54.4

2010 1603.5 851.9 751.6 100.3

Growth Rate 12.2 % 14.9 % 9.4 % 84.4 %

28

29

6.2 Commodity Trading Trading in commodities rose in from 2009s AED 1329.2 billion to AED 1457.4 billion in 2010, i.e., with a growth rate of 9.6 %. For exports, which include oil and free zone exports as well as other commodity exports, they realized a better growth rate of 9.8 % in 2010, with oil accounting for 35.6 % of total exports; free zone exports for 12.7 %, and re-exports for 40.9 % as clarified by Table 17 below.

Figure 8 Foreign Trade Developments (2009 2010)

Balance of trade Free zone imports Commodity imports Total imports

Table 17 Merchandise Foreign Trade Developments (2009-2010)

2009 704.4 249.3 65.3 96.2 293.6 62.4.8 447.4 177.4 1329.2 79.6 2010 773.7 275.7 83.1 98.3 316.6 683.7 485.4 198.3 1457.4 90.0 Growth Rate Contribution 9.8 % 100.0 % 10.6 % 35.6 % 27.3 % 10.7 % 2.2 % 12.7 % 7.8 % 40.9 % 9.4 % 100.0 % 8.5 % 71.0 % 11.8 % 29.0 % 9.6 % 100 % 13.1 %

Re-exports Free zone exports Commodity exports Oil & gas exports Total exports

Sources: UAE Central Bank, Annual Report 2010 NBS, Foreign Trade Statistics 2010.

Total exports & re-exports Oil & gas exports Other commodity exports Free zone exports Re-exports Total imports Commodity imports Free zone imports Total commodity trade Balance of trade

6.3 Non-oil Commodity Trading Non-oil commodity activity, excluding trading through free zones, grew by 14.2 % in 2010, with total commodity trading reaching AED 754.4 billion compared to 2009s AED 660.4 billion as Table 18 indicates. Exports went up as well by 3.27 % to account for 11 % of total commodity trading for a value of AED 83.1 billion in 2010 compared to 2009s AED 65.3 billion. Re-exports, by turn, skyrocketed to neatly 25.8 % to hit AED 185.9 billion compared to 2009 AED 147.7 billion, with their contribution to the total foreign trade amounting to 24.6 %. Yet, imports rose by 8.5 % in 2010 from AED 447.4 billion to AED485.4 billion, but with a lower contribution to total trade hitting 64.3 %.

Imports grew as well by about 9.4 % in the same year, with free zone imports accounting for nearly 29 % of total imports. So, the balance of trade realized a surplus of AED 90 billion with a growth rate of 13.1 % compared to 2009.

30

31

Table 18 Non- Oil Foreign Trade Developments (2009-2010)

(AED billion)

Table 19 FDI Flows (2009-2010)

2009 992.8 257.6 25.9 % 2010 1093.1 280.3 25.6 % Growth Rate ( %) 10.1 % 8.8 % (AED billion)

2009 National exports Re-exports * Total exports Imports Total trade Non-oil trade deficit
* Free zone trade excluded Source: NBS, Foreign Trade Statistics 2010

2010 83.1 185.9 268.9 485.4 754.4 - 216.5

Growth Rate 27.3 % 25.8 % 26.3 % 8.5 % 14.2 % - 7.6 %

65.3 147.7 231.0 447.4 660.4 - 234.4

Source: FDI Date, UNCTAD Conference, World Investment Report 2011.

GDP FDI FDI / GDP

Reviewing FDI division by economic activity, real estate attracted the most part thereof in 2010 by 28.7 %, followed by financial brokering and insurance by 20.9 %, construction by 19.3 %, whole and retail trade by 10.1 %, manufacturing, electricity and water then transport, warehousing and communications sectors by 8.0 %, 4.6 % and 4.0 % respectively. Explorations, restaurants and hotels, personal services and agriculture sectors brought up the rear by 3.0 %, 1.0 %, 0.3 % and 0.1 % respectively.

Lower import growth, compared to exports and re-exports, led to declining trade deficit from AED 234.4 billion to about AED 216.5 billion in 2010, i.e., with a rate 7.6 %. India, China, US, Germany and Japan kept their positions as the top trading partners. Gold, diamond, cars and communication devices kept their positions as the leading imports. Gold, ships, metal by-products, sugar, ethylene polymers and mineral oils topped exports, while diamond, cars, phones, plane and car spare parts accounted for key re-exports. 7. Foreign Direct Investment (FDI) In light of state-driven efforts for a better investment climate and stable, encouraging and investment-attractive environments, investment flow witnessed significant increase as it moved up from AED 275.6 billion in 2009 to AED 280.3 billion in 2009, with a growth rate of 8.8 %.

Table 9 Percentage Breakdown of FDI by Economic Activity - 2010

Agriculture, fishing & forestry 0.1 % Personal services 0.3 % Explorations 3.0 % Manufacturing 8.0 % Electricity & water 4.6 %

Real estate & rentals

Construction

Financial institutions & insurance Transport, warehousing & communications

Restaurants, hotels and cafes 1.0 %

Whole / retail trade 10.1 %

32

33

8. Population and Manpower 8.1 Population According to official estimates, population reached 8.3 million in 2010 compared to 8.2 million in 2009 with a growth rate of 1.2 % compared to 1.6 % in 2009. UAE population structure is mainly known for being male-deviated by 75 % to 25 % for females. Type Male Female Total
(Million)

Table 21 UAE Labor Force Key Indicators by Gender (2009-2010)

Economic Activity Rate
2008 2009

Employed
2008 2009

Unemployment
2008 2009

89.4% 41.8% 72.6%

88.9% 42.1% 72.4%

98.0% 88.0% 96.0%

97.6% 89.2% 95.8%

2.0% 12.0% 4.0%

2.4% 10.8% 4.2%

Table 20 UAE Population by Gender (2009-2010)

Male
Number %

Source: 2009 Manpower Survey, National Bureau of Statistics

Year 2009 2010

Source: NBS

Female
Number %

Total
Number

6.1 6.1

74.6 74.6

2.1 2.1

25.4 25.4

8.2 8.3

According to official estimations, male expatriates accounted for the largest percentage in 2010. Despite slight decline, their percentage hit 68.8 % compared to 68.9 % in 2009, followed by female expatriates who accounted for 19.8 % compared to 19.7 % of the total population in 2009. 8.2 Labor Force Labor Force 2009 surveys suggest the economically active to account for 72.4 % in 2009, of whom the employed are 96 % and the jobless 4 %. Males employed are 98 % compared to 89 % among females. Accordingly, unemployment rate among males is 2 % compared to 11 % for females.

34

35

Fourthly: Economic Issues

Knowledge Economy Knowledge Economy is defined as the economy that uses knowledge intensively in the growth cycle. For this economy, knowledge is the essential constituent to be involved in the process of introduction and the main drive to economic growth. This is due to the fact that, being based on the information and communication technology considered as the essential foundation of that type of economy, hence the more this component is used, the more the growth rates do increase. Unlike the traditional economy that puts less emphasis on knowledge and where growth rests heavily on the traditional factors of introduction such as land, manpower and capital, this economy sees much more valuable the highly skilled human resources. Knowledge economy is also called: information economy, digital economy, new economy, token economy and post-industrial economy. Being in its way to achieve the goals of federation strategy and its vision for 2021 as well as changing the economic structure to be in a position of global competition through structural shifts most notably this one relating to the transformation from the traditional economy to knowledge economy, the UAE has taken several wide, positive steps in this regard including: 1. Consolidating the legislative and regulatory structure in the field of technology and communications In view of building up a knowledge-based economy, the UAE has gone a long way in the enactment of legislations appertaining to strengthening the legal and regulatory structure in all fields of technology and communications. In this arena, the state has issued three federal laws on protecting the intellectual property rights in accordance with the provisions of Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Furthermore, it acceded to the treaties, agreements and conventions on intellectual property together with issuing a law regulating E-Commerce. Moreover, the Government of Dubai passed numerous laws relating to the establishment of Technology and Media Free Zone along with regulating electronic transactions in all economic and social activities within the Emirate. At the regulatory level, the state has issued laws appertaining to the establishment of Telecommunications Regulatory Authority and allowing the competition between the two service providers, i.e. Etisalat and Du, besides regulating the electronic transactions and commerce.

2. Building up human and institutional capacities concerning information and communication technology Owing to the fact that information technology is the operative and supportive strength for human development, the UAE has been prompted to develop policies and programs aiming at increasing the impact of information technology on reforming education and achieving economic and social development. In fulfilling that, the state has endeavored to develop education together with furnishing the schools with computers and expansion in building institutions of higher education in order to generalize e-learning. Moreover, the state established several clusters, institutions and institutes for research and technology in order for encouraging research, creativity and innovation including, but not limited to: MASDAR City, Mohammed Bin Rashid Technology Park, Dubai Biotechnology & Research Park, Dubai Silicon Oasis Park, Dubai Silicon centre for experience embracing, technology parks and media zone in Dubai, which includes: Dubai Internet City, Dubai Media City and Dubai Knowledge Village, Arab science and Technology Foundation in Sharjah, Technology Centre in Ras Al-Khaimah, Centre of Excellence for Applied Research and Training that is the commercial branch for Technology Higher Colleges, institutes and centers for environmental researches and biotechnology water treatment. 3. Consolidating information and communication infrastructure Insomuch as infrastructure is the prop of knowledge economy and the basis for making information and communication technology within reach of all population as well devoting its use for increasing the flow of information and knowledge, decreasing the cost of transactions and raising the rates of communications, productivity and yield, the UAE tended to support and upgrade the technical level of phone network, other phone services and the networks supporting the internet. By doing so, the UAE holds one of the most developed infrastructures in the field of information technology and becomes able to diversify numbers and levels of the services provided, a matter that makes, in turn, the costs to be accessible to citizens. Additionally, the rate of spread of fixed and mobile lines and internet services continues to rise greatly and the use of personal computers between all individuals and companies has spread as well. 4. State orientation towards knowledge economy During the process of transition to knowledge economy, the UAE put so much effort into adopting a strategy aiming to develop an institutional economic system capable of improving the productivity of economy and developing the social structures through setting up sound foundations for a competitive digital economy feasible for creating an economic activity characterized by high added value. 37

36

In this context, economic incentives the state is obliged to provide to encourage creativity were furnished and updated along with providing the requirements needed for getting the technical knowledge and using it effectively to increase the existing and new knowledge. This, in effect, requires from the competitive economic environment to adopt good policies in order to practice market activities so as to be open to free trade, direct investment, and protecting intellectual property rights with a view to encouraging growth and investment in knowledge. For the purpose of establishing the rules and principles of knowledge economy, the UAE has developed practical and effective plans to diversify the economic base to be a center and a hub for advanced technology. Through this approach, the state has already entered to partnerships and economic relations with many prominent international companies possessing advanced technical capacities to fetch and direct the same towards researches and development with the aim of creating the actuating force for economic diversity in different economic fields in the state. 5. Knowledge economy partners Knowledge economy is heavily leaning on the correlation between economic growth and total human capital measured in accordance with the total population of university education. On that basis, it is required to adopt and support policies aiming at reforming education systems for the purpose of orientation towards information economy to create knowledge society in which the creative and innovative individuals having high skills use the digital resources to create new products. This, in effect, required developing policies and programs aiming to increase the effect of information technology on education and economic and social development. The list of partners in this connection is: Ministry of Economic Ministry of Education Ministry of Higher Education and Scientific Research Governmental authorities Universities Research institutes and centers Governmental and non-governmental organizations Companies and investment institutions working in the field of advanced technology transfer and localization.

Fifthly: 2011 Economic Predictions

Under the recovery of global economy, crude oil prices forecast to rise allowing the economy of the state to achieve an outstanding performance in 2011. Additionally, the GDP growth is to rise in 2011 driven by international high prices of oil and the escalation of growth pattern in non-oil sectors. It is expected that the volume of GDP at current prices is to move up to AED 1311 billion in 2011 compared to AED 1093.1 billion in 2010, with growth rate of 20.0%. Also, it is expected for Total Fixed Capital Formation at current prices to reach AED 307 billion compared to AED 260.2 billion in the in the previous year. Further, non-oil sector is to maintain high rates of growth, driven by the escalation of government spending and implementing plans and programs of economic diversity, depending on preparing the investment environment through the amendment of the foreign direct investment law, consolidating partnership between private and public sectors, encouraging joint investment projects and attracting major foreign companies to open production fields as well. Under the expectations referring that high oil prices are to continue, public revenues growth forecasts to rise in 2011 and the internal and external economic balance is to improve though the increase in government spending volume. Moreover, government spending is expected to maintain its role as a main incentive for economic growth in the state, and this is represented by the government plan to update the infrastructure in the northern emirates, a step towards achieving much more extensive economic growth. Further, the federal government budget is to focus on social development and the social services sector is to spend about AED 19 billion by a rate of 46% of the total public budget in 2011 to be allocated for general and higher education, health, pensions, social benefits, Sheikh Zayed Housing Program and Marriage Fund, which constitute the direct services affecting the lives of the citizens and their standards of living. Furthermore, some inflationary pressures are expected to emerge under high international prices for commodities, foods and fuel prices owing to the expectation for inflation rate as per the consumer price index is to be moderate within 2.0% in 2011 together with the stability of rental prices.

The abovementioned authorities are required to work on connecting and coordinating between policies in the field of communications, sciences and technology through developing main plans for communication and information technology to be linked to sustainable economic growth. 38 39

40

Sixthly: Statistical Schedules

Schedule No. (1) UAE Key Economic Variables

Statistical Appendices

(value: AED million)

Economic variables

2002 403.300 309.595 668.618

2003 456.662 341.881 727.460

2004 542.885 384.798 7973052

2005 663.316 436.085 835.750

2006 815.684 510.922 918.541

2007 948.056 627.708 948.056

2008 1.156.267 728.602 979.291

2009* 992.805 705.599 963.530

2010* 1.093.114 749.182 977.329

GDP at current prices

GDP save Crude Oil Sector GDP at 2007 prices GNI

406.683

456.462

545.485

673.916

833.084

978.806

1.170.237

1.002.405

1.107.084

NNI

373.144

420.982

507.765

602.438

752.032

887.596

1.058.126

901.147

979.767

Disposable National Income National Saving Final Consumption Expenditure (FCE) Government FCE Private FCE

356.894 65.381 291.513 35.388 256.125

403.862 88.691 315.172 38.661 276.511

486.921 105.934 380.986 42.286 338.700

577.737 145.651 432.086 45.544 396.542

721.931 199.808 522.122 50.961 471.161

853.485 206.191 647.294 56.190 591.104

1.019.126 229.908 789.219 66.570 722.649

863.747 162.345 701.402 89.301 612.101

938.367 198.420 739.947 90.141 649.806

Total fixed capital formation

84.981

94.947

101.433

121.911

141.822

217.835

244.967

221.252

260.230

Commodity and Service Exports Commodity and Service Imports Volume of wages (compensations for workers) General index for consumer prices (2000 = 100)1

199.647 175.711 98.443 106

255.380 211.786 111.098 109

345.100 288.027 123.115 115

448.305 344.710 139.927 122

559.813 414.737 158.434 133

685.620 610.128 206.146 148

913.748 806.901 255.471 112

741.694 687.271 241.531 114

822.739 745.825 256.854 115

Inflation (%)

2.9 Source: NBS * Preliminary * * Discretionary

3.2

5.0

6.2

9.3

11.1 1. Index for 2008 & 2009 with Base Year 2007= 100.

12.3

1.6

0.9

41

42
Schedule No. (2) GDP (at current Prices) by Economic Activity
AED million

Sectors
2002 372753 8886 93705 701 52685 6917 37744 73215 10469 34235 45549 8646 22041 18410 2025 11930 403300 Source: NBS * Preliminary * * Discretionary 309595 456662 341881 13453 2175 2249 15586 542885 384798 19917 20881 24929 29791 42195 23131 2769 22109 663316 436085 9781 11163 12147 52422 62802 71171 37731 46344 52196 61989 81495 13736 51090 24478 3166 24619 815684 510922 11243 11908 13358 15831 78797 83738 90108 107262 132166 17939 76088 111180 16666 67872 28434 3582 34567 948056 627708 44088 49014 57912 72408 94714 8703 10129 12611 15096 17396 20581 122242 147590 21356 88815 125697 20859 73185 38733 4158 45277 1156267 728602 55998 62499 70365 78774 85490 99641 747 825 974 1289 1496 1439 114781 158087 227231 304762 320349 427666 287206 1377 100345 23818 117270 133555 20702 92482 106685 22587 71842 47809 4266 46722 992805 705599 8803 9041 9256 8926 9251 9585 9581 423094 505550 617330 761568 882736 1085469 915611 2003 2004 2005 2006 2007 2008 2009 2010

Non-Financial project sector: Agriculture, animal & fish resources Crude oil and natural gas Quarries Manufacturing Electricity, gas and water Construction Whole / retail trade & maintenance services Restaurants and hotels Transport, warehousing and communications Real estate and business services Social and personal services Financial project sector Gov. service sector Household services Minus: banking services calculated Total Total sectors save crude oil

1012939 9590 343932 1436 106263 27983 127333 139959 23116 98978 108413 25936 74320 49865 4133 48143 1093114 749182

Schedule No. (3) GDP (at 2007 Prices) by Economic Activity

AED million 2002 627646 265728 65230 42985 85792 15039 43866 75022 10818 27402 25718 2683 14831 668618 402889 Source: NBS 11052 798 11316 2003 683630 282175 68027 13478 48491 102950 15543 47075 82052 12053 30389 26982 2858 16399 727460 445285 822 10964 2004 750142 302930 73413 15131 59102 110568 16771 54595 92318 13572 35046 27072 3128 18335 797052 494123 995 10748 2005 781777 309975 78238 16469 63271 116096 16572 59538 96499 13739 46929 29092 3542 24590 835750 525775 1064 10316 2006 859834 344678 83918 17172 86136 124803 16887 64561 95774 14947 54377 27202 3331 26203 918541 573863 1533 9425 2007 882736 320349 85490 17396 94714 132166 17939 76088 111180 16666 67872 28434 3582 34567 948056 627708 1496 9251 2008 914606 312791 94286 104443 135703 18300 85583 114042 19384 68698 34506 3983 42502 979291 666500 20202 1629 8243 2009 895134 324930 90680 105850 124270 15962 87994 92705 20483 64608 41937 3868 42017 963530 638600 22440 1643 8177 2010 907526 306808 93459 114921 130194 17667 91816 95141 22580 64980 43361 3555 42092 977329 670521 25324 1780 7834

Sectors Non-Financial project sector: Agriculture, animal & fish resources Crude oil and natural gas Quarries Manufacturing Electricity, gas and water Construction Whole / retail trade & maintenance services Restaurants and hotels Transport, warehousing and communications Real estate and business services Social and personal services Financial project sector Gov. service sector Household services Minus: banking services calculated Total Total sectors save crude oil
* Preliminary * * Discretionary

43

44
Schedule No. (4) GDP Structure (at 2007 Prices) by Economic Activity
2002 93.9 1.7 39.7 0.1 9.8 1.7 6.4 12.8 2.2 6.6 11.2 1.6 4.1 3.8 0.4 2.2 100 60.3 2.3 100 61.2 0.4 3.7 4.2 4.4 3.4 0.4 2.3 100 62.0 1.7 1.7 11.3 11.6 11.5 1.6 5.6 3.4 0.4 2.9 100 62.9 6.5 6.8 7.1 2.1 2.1 2.0 1.8 7.0 10.4 1.6 5.9 3.0 0.4 2.9 100 62.5 14.2 13.9 13.9 13.6 6.7 7.4 7.6 9.4 10.0 13.9 1.9 8.0 11.7 1.8 7.2 3.0 0.4 3.6 100 66.2 1.9 1.9 2.0 1.9 1.8 9.4 9.2 9.4 9.1 9.0 0.1 0.1 0.1 0.2 0.2 0.2 9.6 2.1 10.7 13.9 1.9 8.7 11.6 2.0 7.0 3.5 0.4 4.3 100 68.1 38.8 38.0 37.1 37.5 33.8 31.9 1.5 1.3 1.2 1.0 1.0 0.8 0.8 33.7 0.2 9.4 2.3 11.0 12.9 1.7 9.1 9.6 2.1 6.7 4.4 0.4 4.4 100 66.3 94.0 94.1 93.5 93.6 93.1 93.4 92.9 2003 2004 2005 2006 2007 2008 2009 2010 92.9 0.8 31.4 0.2 9.6 2.6 11.8 13.3 1.8 9.4 9.7 2.3 6.6 4.4 0.4 4.3 100 68.6

% Sectors Non-Financial project sector: Agriculture, animal & fish resources Crude oil and natural gas Quarries Manufacturing Electricity, gas and water Construction Whole / retail trade & maintenance services Restaurants and hotels Transport, warehousing and communications Real estate and business services Social and personal services Financial project sector Gov. service sector Household services Minus: banking services calculated Total Total sectors save crude oil
Source: NBS * Preliminary * * Discretionary

Schedule No. (5) Gross Fixed Capital Formation Sectors

2002 836 2003 70.082 77.762 828 6.677 7.080 2004 83.561 822 7.555 2005 848 2006 104.809 123.335 862 8.449 9.877 2007 191.010 843 11.392 2008 913 2009 204.256 178.235 911 22.552 20.156 2010 211.762 985 26.070

Agriculture, animal & fish resources Crude oil and natural gas Quarries

:Non-Financial project sector

202

209

222

244

268

314

340

289

325

Manufacturing

12.114 13.745

15.484

17.803

21.167

22.415

32.201

30.268

36.291

Electricity, gas and water Construction Whole / retail trade & maintenance services Restaurants and hotels Transport, warehousing and communications Real estate and business services Social and personal services

7.762 4.424 3.193 3.461

8.829 4.796 3.779 4.002 11.166 12.897 18.188 19.008 2.059 2.589

10.058 5.047 4.003 4.770 13.152 19.518 3.020

11.575 6.491 11.204 6.102 15.262 23.441 3.391

12.795 8.042 13.275 6.865 16.665 29.653 3.866

14.993 13.812 23.228 7.972 24.368 64.692 6.981

24.024 17.222 14.177 4.300 32.374 48.056 8.096

26.424 13.807 10.166 3.497 27.371 36.719 8.627

33.531 16.193 11.507 4.218 31.640 40.303 10.699

Financial project sector

1.306

1.480

1.768

1.938

2.182

5.596

3.526

2.890

3.229

Gov. service sector

13.593 15.704

16.015

15.164

16.305

21.230

37.185

40.127

45.238

Total

84.981 94.947 101.433 121.911 141.822 Source: NBS * Preliminary * * Discretionary

217.835

244.967 221.252 260.230

45

46 %
Sectors
2002 3.2 -6.1 1.6 2.9 9.8 -0.2 20.2 3.3 11.5 10.5 11.5 8.8 3.3 3.8 15.3 2.4 9.0 10.5 8.8 10.6 11.8 9.6 11.0 6.5 9.5 4.9 0.3 10.9 15.3 33.9 3.8 13.2 34.1 4.9 6.4 11.4 12.6 1.2 9.4 12.5 4.5 11.4 12.6 1.2 8.8 -0.8 8.8 15.9 -3.2 -6.0 6.6 9.9 9.1 3.4 7.9 -1.2 1.9 20.0 7.4 5.0 7.5 5.9 6.2 11.5 16.1 11.5 24.8 4.5 7.6 31.9 3.2 9.4 12.8 21.9 7.1 36.1 10.0 22.0 12.3 8.8 4.3 1.3 4.3 7.9 6.6 7.3 1.9 10.3 16.1 10.3 2.7 2.0 16.3 2.6 16.3 1.2 21.4 11.2 23.0 3.3 6.2 2.9 21.1 7.0 44.1 -2.4 8.9 6.2 7.4 2.3 11.2 -7.1 -2.4 3.9 0.9 -3.8 11.1 1.3 -8.4 -12.8 5.7 -18.7 5.7 -6.0 21.5 -2.9 -1.1 -1.6 -4.2 -3.1 -2.0 -4.0 -8.6 -1.8 -10.9 -0.8 2003 2004 2005 2006 2007 2008 2009 2010 -4.2 -5.6 8.3 3.1 12.9 8.6 4.8 10.7 10.2 2.6 10.2 0.6 3.4 -8.1 0.2 1.4 5.0

Schedule No. (6) GDP Growth (at 2007 Prices) by Economic Activity

Agriculture, animal & fish resources Crude oil and natural gas Quarries Manufacturing Electricity, gas and water Construction Whole / retail trade & maintenance services Restaurants and hotels Transport, warehousing and communications Real estate and business services Social and personal services Financial project sector Gov. service sector Household services Minus: banking services calculated Total Total sectors save crude oil
Source: NBS * Preliminary * * Discretionary

Schedule No. (7) GDP Growth (at current Prices) by Economic Activity

Sectors

2002

2003

2004

2005

2006

2007

2008

2009

2010

Agriculture, animal & fish resources Crude oil and natural gas Quarries

4.6 -1.1 5.9

-0.9 22.5 6.6

2.7 37.7 10.4

2.4 43.7 18.1

-3.6 34.1 32.3

3.6 5.1 16.1

3.6 33.5 -3.8

0.0 -32.8 -4.3

0.1 19.8 4.3

Manufacturing

4.3

6.3

11.6

12.6

12.0

8.5

16.6

0.7

5.9

Electricity, gas and water Construction Whole / retail trade & maintenance services Restaurants and hotels Transport, warehousing and communications Real estate and business services Social and personal services

9.6 4.0 8.3 9.3 17.0 15.2 15.4

25.8 16.8 7.6 7.4 10.2 15.1 13.1

16.4 11.2 6.3 5.9 22.8 19.8 14.1

24.5 18.2 7.6 12.2 12.6 13.3 8.8

19.7 25.0 19.0 18.5 18.8 14.5 13.1

15.2 30.8 23.2 13.3 22.7 36.4 21.3

18.3 29.1 11.7 19.0 16.7 13.1 25.2

15.7 -4.1 -9.5 -3.1 4.1 -15.1 8.3

17.5 8.6 4.8 11.7 7.0 1.6 14.8

Financial project sector

10.3

13.1

19.5

41.6

21.1

32.8

7.8

-1.8

3.4

Gov. service sector

6.4

8.2

4.8

10.8

5.8

16.2

36.2

23.4

4.3

Household services

6.5

7.4

3.4

23.1

14.4

13.1

16.1

2.6

-3.1

Minus: banking services calculated Total Total sectors save crude oil
Source: NBS * Preliminary * * Discretionary

16.9 6.3 8.7

12.8 13.2 10.4

15.9 18.9 12.6

41.9 22.2 13.3

11.4 23.0 17.2

40.4 16.2 22.9

31.0 22.0 16.1

3.2 -14.1 -3.2

3.0 10.1 6.2

47

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Schedule No. (8) GDP (at current Prices) by Expenditure
AED million 2002 2003 315172 380986 38661 276511 338700 94947 16129 24520 54298 2950 255380 345100 211786 288027 3396 3935 448305 344710 5070 663316 658246 3392 5724 57831 75360 87132 6663 559813 414737 6234 815684 809450 28395 32509 37942 15207 14042 16748 21197 42992 153646 7435 685620 610128 7559 948056 940497 101433 121911 141822 217835 386542 471161 591104 722649 244967 24072 61001 159894 15235 913748 806901 9316 1156267 1146951 42286 45544 50961 56190 66570 432086 522122 647294 789219 701402 89301 612101 221252 26576 63281 131395 15728 741694 687271 10207 992805 982599 2004 2005 2006 2007 2008 *2009 *2010 716547 90141 626406 260230 27920 66481 165829 16023 851939 751625 10723 1093114 1082391

Final Consumption Expenditure

291513 35388 256125 84981 14016 22003 48962 2870 199647 175711 2430 403300 400870

Government expenditure )Private expenditure (familial Total capital formation governmental public private Change in commodity stocks Commodity and Service Exports Minus: Commodity and Service imports )Indirect taxes (net GDP at market price GDP at base price
Source: NBS * Preliminary * * Discretionary

456662 542885 453266 538950

Schedule No. (9) GDP (at 2007 Prices) by Expenditure

AED million 2002 2003 443564 452998 2004 2005 488807 504722 2006 565770 2007 647294 2008 704113 *2009 668307 *2010 656127

Final Consumption Expenditure Government expenditure )Private expenditure (familial Total capital formation governmental public private Change in commodity stocks Commodity and Service Exports Minus: Commodity and Service imports )Indirect taxes (net GDP at market price GDP at base price
Source: NBS * Preliminary * * Discretionary

49436 394128 101910 16808 26386 58716 3451 330988 211296 2922 668618 665695

52375 400623 109817 18655 28360 62802 3421 406818 245594 3938 727460 723522

54823

55311 433984 449410 110798 16611 31017 63170 3685 131465 15142 35057 81266 6168 506669 564846 312907 371450 4275 5463 797052 835750 792777 830287

56632 509138 149642 17671 40034 91937 6977 630405 434253 6527 918541 912014

56190 591104 217835 21197 42992 153646 7435 685620 610128 7559 948056 940497

59305 644808 222067 21822 55299 144947 13871 773891 734652 8482 979291 970809

78335 589973 207823 24963 59440 123420 14812 719823 647235 9612 963530 953918

78383 577744 240615 25816 61470 153330 14836 761700 695949 9929 977329 967400

49

50
Schedule No. (10) GDP (at 2007 Prices) by Economic Sector
%

Sectors
2002 3.2 - 6.1 1.6 2.9 9.8 -0.2 20.2 3.3 15.0 10.5 11.5 8.8 3.3 3.8 15.3 2.4 9.0 10.6 8.8 10.5 6.5 4.9 0.3 9.5 11.8 9.6 11.0 10.9 15.3 11.4 12.6 1.2 33.9 3.8 13.2 34.1 4.9 6.4 9.4 12.5 4.5 7.3 16.0 9.1 8.4 -0.8 8.8 15.9 -3.2 -6.0 6.6 9.9 9.1 3.4 7.9 -1.2 1.9 20.0 7.4 5.0 7.5 5.9 6.2 17.9 16.1 11.5 24.8 4.5 7.6 31.9 3.2 9.4 12.8 21.9 7.1 36.1 10.0 22.0 12.3 8.8 4.3 1.3 16.1 10.3 2.7 2.0 12.5 2.6 16.3 1.2 21.4 11.2 23.0 3.3 6.2 4.3 7.9 6.6 7.3 1.9 10.3 2.9 21.1 7.0 44.1 -2.4 8.9 0.9 -3.8 11.1 1.3 -8.4 -12.8 2.8 -18.7 5.7 -0.6 21.5 -2.9 -1.1 -1.6 -4.2 3.9 -2.4 -7.1 11.2 2.3 7.4 6.2 -3.1 -2.0 - 4.0 - 8.6 - 1.8 -10.9 - 0.8 - 4.2 - 5.6 8.3 3.1 12.9 8.6 4.8 10.7 4.3 2.6 10.2 0.6 3.4 -8.1 0.2 1.4 5.0 2003 2004 2005 2006 2007 2008 2009 2010

Agriculture, animal & fish resources Crude oil and natural gas Quarries Manufacturing Electricity, gas and water Construction Whole / retail trade & maintenance services Restaurants and hotels Transport, warehousing and communications Real estate and business services Social and personal services Financial project sector Gov. service sector Household services Minus: banking services calculated Total Total sectors save crude oil
Source: NBS * Preliminary * * Discretionary

Schedule No. (11) GDP Growth (at current Prices) by Expenditure

% 2002 2003 10.0 8.1 2004 20.9 2005 13.4 2006 20.8 2007 24.0 2008 21.9 2009 -11.1 *2010 2.2

Final Consumption Expenditure Government expenditure )Private expenditure (familial Total fixed capital formation governmental public private Change in commodity stocks Commodity and Service Exports Minus: Commodity and Service imports )Indirect taxes (net GDP at market price GDP at base price
Source: NBS * Preliminary * * Discretionary

8.8 10.2 6.8 -9.8 8.4 11.9 2.8 7.0 13.8 108.2 6.3 6.0

9.2 8.0 11.7 15.1 11.4 10.9 2.8 27.9 20.5 39.8 13.2 13.1

9.4 22.5 6.8 -5.7 15.8 6.5 15.0 35.1 36.0 15.9 18.9 18.9

7.7 14.1 20.2 -7.7 14.5 30.3 68.8 29.9 19.7 28.8 22.2 22.1

11.9 21.9 16.3 11.9 16.7 15.6 16.4 24.9 20.3 23.0 23.0 23.0

10.3 25.5 53.6 10.3 13.3 76.3 11.6 22.5 47.1 21.3 16.2 16.2

18.5 22.3 12.5 18.5 41.9 4.1 104.9 33.3 32.3 23.2 22.0 22.0

34.1 -15.3 -9.7 34.1 3.7 -17.8 3.2 -18.8 -14.8 9.6 -14.1 -14.3

0.9 2.3 17.6 0.9 5.1 26.2 1.9 14.9 9.4 5.1 10.1 10.2

51

52
Schedule No. (12) GDP Growth (at 2007 Prices) by Expenditure
2002 5.2 5.7 5.1 3.1 -12.9 4.6 8.0 -0.7 3.2 9.9 101.1 2.4 2.2 8.8 8.7 34.8 16.2 27.4 8.6 9.6 9.6 22.9 24.5 -0.9 7.7 67.4 11.5 18.7 27.8 4.9 4.7 7.0 0.6 28.6 13.1 13.1 11.6 16.9 19.5 9.9 9.8 7.5 9.4 13.0 14.2 7.4 67.1 6.6 8.8 40.5 15.8 3.2 3.1 11.0 -11.0 -8.8 16.7 20.0 7.8 0.9 18.7 13.8 45.6 1.9 2.9 28.6 -5.7 86.6 12.9 20.4 12.2 3.3 3.2 1.6 8.3 3.6 13.3 16.1 9.1 -8.5 -6.4 14.4 7.5 -14.9 6.8 -7.0 -11.9 13.3 -1.6 -1.7 5.9 4.7 0.9 2.4 -0.8 5.5 32.1 2.1 7.9 3.3 12.1 14.4 8.8 -5.1 -1.8 0.1 -2.1 15.8 3.4 3.4 24.2 0.2 5.8 7.5 3.3 1.4 1.4 2003 2004 2005 2006 2007 2008 2009 2010*

Final Consumption Expenditure

Government expenditure

Private expenditure (familial)

Total fixed capital formation

governmental

public

private

Change in commodity stocks

Commodity and Service Exports

Minus: Commodity and Service imports

Indirect taxes (net)

GDP at market price

GDP at base price

Source: NBS

* Preliminary * * Discretionary