UAE

The United Arab Emirates (UAE) is a federation of seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Quwain, Ras al-Khaimah, and Fujairah. The UAE has the world's seventh largest oil resources, and is the second largest economy in MENA, after Saudi Arabia. It is also the most diversified of GCC economies, with the non-oil sector accounting for around 70% of GDP. The UAE is currently showing stronger signs of recovery following the global financial crisis of 2009. Economic growth in the UAE has been driven by an increase in oil production and high spending on infrastructure in Abu Dhabi, while in Dubai growth is driven by a pickup in trade, tourism, and services. However, uncertainty over the debt overhang by government related entities, especially in Dubai, continues to weigh on private consumption and investment.

The outlook for the UAE depends on the pace of global recovery and the progress achieved on financial reforms, the rehabilitation of banks, and ongoing restructuring of GRE debt. While external debt remains high (around 70% of GDP), the UAE’s solvency is not in question, with external assets of around USD820 billion managed by the Abu Dhabi Investment Authority and other sovereign wealth funds.

Key Indicators (2011)
Nominal GDP (USD bn) 338.7
Population (mn) 8.5
Real GDP growth (%) 4.2 Population growth 2.5
GDP per capital (USD) 39,984 Inflation (y-o-y %) 0.9
Sectors M2 growth (y-o-y %) 5.1
Services 18.5 Exchange rate (USD/AED) 3.7
Industry 42.0 Current account (% of GDP) 9.1
Agriculture 0.8 Net Foreign Assets (USD bn) 25.2
Oil & Gas 38.6 Abu Dhabi's share of GDP (%) 59.5
Dubai's share of GDP (%) 28.9

 

Printed from the Beltone Financial website

Page: Markets > UAE
URL: http://www.beltonefinancial.com/uae