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Real GDP in Abu Dhabi to See 3.8 Percent Growth in 2011

UAE : 12 January 2011

Investments in oil to hit Dh 33.7 billion and those in the private sector will reach Dh 53.9 billion.

Forecasts for the economy of Abu Dhabi state around 3.8 percent growth for 2011 which are driven mainly by the non-oil sector, according to a local report.

Expansion plans in the emirate are going ahead in the hydrocarbon industry as investments in oil are set to reach Dh 33.7 billion this year, a record high that is almost Dh 4 billion more than the 2010 amount. These figures were stated in an ADCCI (Abu Dhabi Chamber of Commerce and Industry) report.

The real GDP for Abu Dhabi sat at Dh 546.7 billion for 2010 and is expected to expand around 3.8 percent to reach Dh 567.3 billion.

Most of that growth is expected to occur in the non-hydrocarbon sector where growth of almost 5.1 percent should be seen, up from Dh 246 billion last year to Dh 300.7 billion this year.

In the report forecasts for the oil sector were set at 2.69 percent growth, moving from Dh 300.7 billion to Dh 308.8 billion.

There was no reason stated for the smaller growth in oil although the report noted that a slight increase in the UAE’s production of crude was expected for 2011.

In Washington the IIF (Institute for International Finance) made projections putting the total oil output of the UAE at 100,000 barrels per day above the 2010 rate.

When looking at current prices the oil sector should see significant increases of 7.6 percent for 2011 due to an expected increase in the price of crude.

The UAE’s investments could potentially grow from the 2010 total of Dh 98 billion to about Dh 112.7 billion in 2011, according to the report.

The report stated that hydrocarbon investments could increase from Dh 29.4 billion to hit Dh 33.7 billion and investments in the government are forecasted to increase from Dh 21.2 billion to almost Dh 25.1 billion. Investments in the private sector should grow from about Dh 47.4 billion last year to almost Dh 25.1 billion this year.

Based on current prices, the economy in Abu Dhabi, which is the UAE’s largest, is expected to see about 8 percent growth moving from Dh 546.7 billion last year to almost Dh 590 billion this year, based on the report statements.

The nominal economy should see growth that will raise the Gross Domestic Product per capita income from the current level of Dh 198,000 to Dh 201,000. Also, real gross domestic product per capita is forecasted to drop from Dh 198,200 to Dh 193,600.

According to the report, inflation is forecasted to sit at 3.2 percent for 2011.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News
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