By: Amr Adel
Dubai-Mubasher: The UAE’s gross domestic product (GDP) is expected to grow by 3-3.5% in 2016 and exceed 4% in 2017, amid expectations of higher oil prices, the UAE’s Economy Minister Sultan bin Saeed Al Mansouri.
Preliminary estimates showed that the UAE's non-oil GDP reached 70% last year, while the real GDP growth stood at 3.1%, Al Mansouri added in an interview with Mubasher magazine.
The UAE is the most stable economy regionally and internationally, despite global economic changes such as weaker oil prices and slower economies, Al Mansouri noted.
Lower global oil prices is a challenge for the UAE as oil revenues currently account for 30% of the country's GDP, the minister said.
The country plans to reduce the oil sector’s contribution to its GDP from the current 30% to 20% by 2021, he said. “Promoting economic diversification will be our plan to immunize UAE’s economy against any possible hits from volatile global and oil markets,” Al Mansouri explained.
The approval of a zero-deficit budget for fiscal year 2016 confirmed that the oil price fall has a limited impact on the country’s economy, said the minister.
This year will see flows of incoming foreign investments ranging from AED 37 billion to AED 55 billion (or from $10.1 billion to $15 billion), he said, adding that the UAE targets to increase these investments to over AED 70 billion ($19 billion) within the coming five years.
The renewable energy, tourism, retail and industrial sectors will boost the foreign capital flow into the country.
Al Mansouri expected, based on estimates by the International Monetary Fund (IMF), the inflation to reach 3% in 2016.
In a reply to a question on the legislative reforms, he said that the Ministry of Economy is working in coordination with the Ministry of Justice and the Federal National Council (FNC) to issue a legislative package aimed at reforming a wide range of commercial and industrial laws.
