UAE: Non-oil sector contributes 68.6% of GDP, expected to achieve 80% in 2021

With the diversification of its economy and striking out dependency on oil sector, the UAE economy is on the right track of its development plan. Contribution of non-oil sector to UAE GDP has already reached 68.6% and is expected to achieve 80% in 2021. Without being impacted by the oil price, on-going strategic projects and infrastructure development projects are all also on the track.

As per a report by the International Monetary Fund (IMF), the national economy of the UAE is growing at a pace of 3%. Experiencing a balanced growth, the UAE economy enhances competitiveness and has the ability to overcome all bottlenecks offsetting the loss in oil prices. At a time where the world is experiencing economic slowdown, the UAE is on the track of growth keeping itself on a safer zone where investors can rely on for a better ROI.

According to His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister and Ruler of Dubai,

Its economic policies were based on diversification away from oil sector,  building balanced relations with leading international economies and opening to foreign countries. The country’s fundamentals have helped it overcome obstacles and achieve a stronger economic performance in 2014, as well as continue this strong performance in the future.

As per a report, overall economic growth of the economy stood at 4.6% whereas non-oil sector achieved a growth rate of 8.1%. Real GDP growth rate is expected to increase by 3 to 3.5%. Around 35,000 small and medium sized businesses that operate in the UAE constitute 86% of the total companies. These businesses contribute 60% of the UAE economy which excludes oil sector.

According to Dinesh Ramchand Gurnani, Managing Director of Riveria Global,

Diversification of the UAE economy has given an impetus for infrastructure growth increasing the demand for commercial, residential and industrial property. Ahead of the EXPO 2020, investors have been focusing on realty investment in Dubai as the ROI is higher than any other investment.

The UAE is one of the oil-producing countries which has focused on diversifying its economy away from oil sector. It has looked to expand national investment in array of non-oil sectors including infrastructure, trade, tourism, financial, banking services, renewable energy, manufacturing and precision industries.

Highlights of the UAE economy and forecast:

  • Annual growth reported – 3%
  • Contribution of non-oil sector to GDP – 68.6%
  • Growth rate of non-oil sector – 8.1%
  • Contribution of non-oil sector expected to grow – 80%

The vision of Dubai ruler is very clear on the diversification of its economy and the plan has already started to show results. Looking at the statistics and the future plan of the government, it is right time for the property seekers, investors and NRIs to invest in Dubai realty.

In case you are planning to invest in Dubai realty, you can visit our property portal and post your requirement. We will revert with the best options within your budget. Alternatively, you can mail your requirements at web_uae@3villaz.com or call us on + (971) 55 279 2403

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