Abu Dhabi: The UAE has turned into a major economic power in the region over the past 10 years, with its Gross Domestic Product (GDP) growing from Dh314.8 billion in 2004 to Dh1.54 trillion in 2014, according to a report on the online portal, HotelandRest.
The report showed that the UAE has witnessed a transition from an oil-based economy to a more diverse one with multiple sources of income. In the past 10 years, non-oil sectors contributed 69 per cent of the total GDP, dropping the contribution of the oil sector to almost one third.
The economic growth-taking place in the 10 years since the beginning of President His Highness Shaikh Khalifa Bin Zayed Al Nahyan’s presidency is expected to continue. According to a forecast by the International Monetary Fund, the country’s GDP will rise in 2018 to Dh1.74 trillion.
Over the past 43 years, though, the UAE’s GDP has increased more than 236 times, going up from nearly Dh6.5 billion in 1971, as per the report.
The UAE is also expected to continue diversifying its income sources — a policy initiated by Shaikh Zayed Bin Sultan Al Nahyan.
The report added that as a result the successful policies led by Shaikh Khalifa, the UAE has positioned itself in 10th place internationally on the per capita income index, with the national savings rate of GDP rising to 32.9 per cent.
The rate is the largest in the world, and exceeds most major economies such as Germany, France, Italy, Brazil and Canada among others.
In terms of national per capita gross income, the report predicted that the UAE will become one of the top 10 countries in the world by 2020, noting that the country currently holds the 16th place.
The president’s policies were also behind the UAE’s current position as one of the most economically-powerful countries in the world in terms of liquidity and cash surplus.
Highlighting the travel and tourism sector, the report stressed that the UAE will be one of the best countries in the world in terms of attracting tourists due to its tourism infrastructure.
The report is based on a recent research by the World Travel and Tourism Council, which expected the travel and tourism sector to contribute about Dh122 billion to the country’s GDP.
The contribution, which was 8.5 per cent of GDP in 2014, represents an annual increase of 4.5 per cent when compared to 2013
Staff Report Published: 17:03 December 29, 2014 Gulf News