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Home / Features / UAE economy records 7.4% growth in 2008

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UAE economy records 7.4% growth in 2008

The UAE economy recorded a growth of 7.4% in 2008. Preliminary data issued by the Central Statistics Department of the Economy Ministry indicates that total Gross Domestic Product (GDP) at fixed price amounted to 535.6 billion dirham in 2008, representing a growth rate of 7.4 per cent, against 498.7 billion dirham, and a growth rate of 5.2 per cent in 2007, whereas the GDP at current price totaled to about 929.4 billion dirham in 2008 over 729.7 billion dirham in 2007. According to Sultan Bin Saeed Al Mansouri, Minister of Economy, preliminary indicators of UAE economic performance during 2008 have shown that the effect of the international financial crisis on aggregate constituents of the national economy was relative and minimal. He asserted that the national economy’s blanket and the fast effective actions taken by the government have assisted, to greater extent, certain economic sectors to regain balance, following the direct difficulties they encountered as a result of the international financial crisis. Those sectors include construction, real estate, financial services and oil sectors. He noted that the effective actions being adopted have helped as well to guide some of these sectors into curative and disciplinary processes which maybe beneficial in the long run. He added that the performance of the national economy for 2008 had passed through two stages prior and after the financial crisis. "The national economy, prior to the crisis has completed its accelerated growth, supported by high growth rates of oil prices, as the price of oil barrel has reached about 147 dollar in July 2008, and hence went through recess and reached its lowest level of 38.6 dollar in December 2008," he said. "Preliminary data issued by the Central Statistics Department of the ministry, indicated that total Gross Domestic Product (GDP) at fixed price amounted to 535.6 billion dirham in 2008, at a growth rate of 7.4 per cent against 498.7 billion dirham, and a growth rate of 5.2 per cent in 2007, whereas the GDP at current price totaled to about 929.4 billion dirham in 2008 over 729.7 billion dirham in 2007," he added. He pointed out that a number of factors had contributed to realisation of the GDP growth, top on the list is oil price hike, as average price of oil per barrel was estimated at about 94.5 dollar in 2008, compared to an average price of about 69.1 dollar per barrel in 2007, which represents an increase of 36.8 per cent. This had positively reflected on the growth of total GDP for 2008.

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