UAE’s GDP growth to remain strong at 4% in 2015 despite lower oil prices - c-bank

By bne IntelliNews September 27, 2015

Strong non-oil output will mitigate weakening growth in the hydrocarbons sector amid falling energy prices on the international markets, helping keep the UAE’s real GDP growth relatively strong at 4.0% in 2015 despite slowing from an estimated 4.6% expansion the year before, the central bank forecasts.

The oil sector will grow by a real 2.6% in 2015, braking from a 4.0% annual expansion last year. The non-oil GDP, however, will expand by 4.6% this year (slightly down from 4.8% in 2014). Growth will be underpinned by public spending on infrastructure projects financed by government-related entities and the mild recovery seen in oil price.

The UAE economy is also benefiting from resilient growth in other GCC countries, as well as in some emerging Asian economies, which import oil from the UAE.

The manufacturing sector (9% of GDP) is expected to grow by 3% on new investments in the free trade zones as well as in the mainland, according to the central bank. Construction (10.5% of GDP) is forecast to grow by 7% due to new housing and infrastructure developments as well as landmark tourism projects.

The wholesale and retail trade sector will grow by 5% this year whereas real estate and business services will contract 4.0%, the c-bank projects. 

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Lebanon becomes European Bank for Reconstruction and Development shareholder

Lebanon has become the fifth member country from the Southern and Eastern Mediterranean (SEMED) region to join the European Bank for Reconstruction and Development (EBRD), becoming a shareholder with ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

US lifts laptop ban on Turkish Airlines flights as of July 5

Passengers boarding an early morning July 5 Turkish Airlines (THY) flight to John F Kennedy International Airport in New York were allowed to include laptops and electronic devices larger than a ... more

Most Read

  1. Erdogan lashes out at Germany, Nato, says "God willing" he'll have Russian missiles soon
    1 day ago
  2. STOLYPIN: Donbas continues to be as unpredictable as it is unloved
    1 day ago
  3. EU allows Gazprom to use an additional 40% of OPAL gas pipeline's capacity
    2 days ago
  4. Ukrainian farmers turn to Donbas veterans for protection from raiders
    1 day ago
  5. Tajik president’s 23-year old daughter appointed deputy head of largest Tajik bank
    6 days ago
  1. Erdogan lashes out at Germany, Nato, says "God willing" he'll have Russian missiles soon
    1 day ago
  2. CHINA RISING: When sleeping giants meet
    15 days ago
  3. Belarus’ retail king Euroopt goes on the road
    21 days ago
  4. STOLYPIN: Donbas continues to be as unpredictable as it is unloved
    1 day ago
  5. STOLYPIN: Russia’s cyber-challenge cuts both ways
    23 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss