The Minister of the Economy states that GDP in the UAE will gather speed next year due to rising oil prices and more trade.
Sultan al Mansouri stated that expansion in the economy should reach 3 to 3.5 per cent in 2011, which is higher than the rate forecasted for this year of 2 to 3.2 per cent.
The Minister is optimistic about the UAE’s economy for 2011, but also noted that the rate of growth will depend on the price of oil and other issues in the European and North American economies.
The opening six months of this year are showing positive signs, according to the minister in Dubai, who mentioned the rise of 12.5 per cent seen during the first six months in the aviation sector.
Mansouri spoke ahead of the World Economic Forum, a summit scheduled for this week. He noted the increased trade data and expects that the GDP will hit Dh 1 trillion (or US$ 272.27 billion) by the close of this year.
It was tough for the UAE in 2009, as it was across the globe, but 2010 saw the Emirates make progress regarding many different domestic business concerns, such as Tamweel, Amlak and Dubai World, stated Minister al Mansouri.
He noted that the issues that faced the UAE last year have all been overcome or are nearing a complete solution.
Director General at the Dubai Economic Department, Sami al Qamzi noted that Dubai is back on course.
Qamzi said that one could say with certainty that Dubai is on track for healthy growth. The emirate has proven to both the national and global business community that there lies a commitment focused on sustainable growth, increased efficiencies and transparent, credible and accountable reporting in both the UAE government and local services.
There is still the issue of landing rights concerning Etihad Airways as well as Emirates Airline, a dispute between Canada and the UAE.
Statements have been made from the Canadians which have at times been heated and hostile. Mansouri commented that this behavior is not usual for international relations.
A major trading partnership exists between Canada and the UAE, as $1.5 billion worth of trades flow back and forth each year. A majority of those are Canadian exports, according to the Minister.
The UAE is pushing for daily Etihad and Emirates flight, an increase from the current three times per week schedule. In October Canada stated that the landing rights would not be granted, partially due to the claim that to do so would cause domestic job losses in the tens of thousands. This statement came after negotiations that have lasted six years.
Mansouri countered that statement with a claim that more flights would result in job creation for Canada.
The Minister stated that for every flight added, up to $60 million each year would be added to the national economy. He forecasted that such a move would create jobs in Canada.
The Minister also discussed concerns that have arisen with Iran, another important trading partner for the UAE.
The government of the UAE recently announced plans to implement sanctions against this partner. These sanctions would include barring ships from Iran and blocking Iranian citizens from entering the UAE.
Mansouri stated that trading would continue between the Emirate and the Islamic republic, but the limits of the UN sanctions take top priority.
He stated the importance of the trading relationship with Iran, both in history and as a geographical neighbor. Mansouri noted that trade will continue indefinitely between Iran and the UAE, as the UN sanctions permit.Paul Holdsworth, Staff Writer, Gulf Jobs Market News