Non-oil activity was the biggest driver of Abu Dhabi's GDP last year despite rising oil output, signalling the emirate's mission to diversify its economy is bearing fruit.
Growth in the non-oil sector reached 5.6 per cent in current prices, according to an annual report released yesterday by the Statistics Centre Abu Dhabi (Scad). Overall GDP grew by 15.9 per cent in current prices to Dh620.2 billion (US$168.85bn), up from Dh546.5bn the year before.
"The non-oil sector is growing relatively well," said Said Hirsh, the Middle East economist at Capital Economics. "The Government has handled its reserves well to invest in Abu Dhabi and help attract foreign companies."
Higher oil prices and rises in crude production pushed up the oil sector's contribution to the economy to 49.7 per cent of GDP last year, from 49 per cent the year before.
Non-oil activity, however, still accounted for more than half of growth, contributing 50.3 per cent of GDP, down from 51 per cent the year before.
Under Abu Dhabi's Economic Vision 2030, officials hope to cut the emirate's reliance on oil to 36 per cent of GDP by 2030. As a result, it is investing billions of dollars in stimulating new growth sectors such as tourism, finance, industry and property.
The capital's economy suffered in 2009 as lower oil prices and reduced business activity caused an 18 per cent drop in GDP in current prices. Scad says it will release next month the GDP estimates for the past five years in real prices, which is the most commonly used GDP data because they take into account inflation.
Activity rebounded last year across all sectors, however, Scad's data show.
Mining and quarrying, which include oil production, rose 28.9 per cent in current prices. Financial sector activity rose by 14.4 per cent, manufacturing 10.8 per cent, property and business activity 6.4 per cent, wholesale and retail trade and repair services 5.3 per cent, and hotels and restaurants 4.6 per cent.
Overall, salaries for workers in Abu Dhabi last year rose 9.1 per cent to Dh117.4bn.
UAE crude production, the bulk of which Abu Dhabi accounts for, rose to about 2.32 million barrels per day (bpd) last year, up from 2.17 million bpd in the previous year, according to a recent report from Opec. Export earnings rose to US$74bn, up nearly 30 per cent from the year before, the report said. Average oil prices accelerated by almost $15 above levels of $60 per barrel in 2009.
With Nymex oil prices now at about $100, along with a broader improvement in non-hydrocarbon activity, analysts expect stronger economic prospects again this year.
"We have forecast GDP for Abu Dhabi to be significantly higher mainly due to higher oil production," said Khatija Haque, a GCC economist at Emirates NBD.
One of the keys to driving faster growth in the non-oil economy is stronger bank lending to the private sector, say economists.
Bank lending rose 3 per cent on an annual basis last month from the same period the year before, Central Bank data released yesterday showed. Loan growth remains weaker than in Saudi Arabia and Qatar.
"There's more liquidity in the market and deposit are OK, but banks are still a little bit cautious, and high retail lending rates are dissuading lending," said Ms Haque.
Bank deposits last month rose to Dh1.12 trillion, up 10.9 per cent from June last year.
Last month, "M2" money supply, an indicator of future inflation pressures, rose at an annualised rate of 12.5 per cent, down slightly from the previous month's 13 per cent annualised rate of increase. "M3", the broadest measure of money supply, increased at an annual rate of 12.4 per cent last month, down 0.7 per cent from the previous month as government deposits dropped.
tarnold@thenational.ae
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
The specs
Engine: 6.2-litre V8
Transmission: ten-speed
Power: 420bhp
Torque: 624Nm
Price: Dh325,125
On sale: Now
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
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The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
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Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
The Greatest Royal Rumble card as it stands
50-man Royal Rumble
Universal Championship Brock Lesnar (champion) v Roman Reigns in a steel cage match
Intercontinental Championship Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe
SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos
Casket match The Undertaker v Chris Jericho
John Cena v Triple H
Matches to be announced
WWE World Heavyweight Championship, Raw Tag Team Championship, United States Championship and the Cruiserweight Championship are all due to be defended
Haircare resolutions 2021
From Beirut and Amman to London and now Dubai, hairstylist George Massoud has seen the same mistakes made by customers all over the world. In the chair or at-home hair care, here are the resolutions he wishes his customers would make for the year ahead.
1. 'I will seek consultation from professionals'
You may know what you want, but are you sure it’s going to suit you? Haircare professionals can tell you what will work best with your skin tone, hair texture and lifestyle.
2. 'I will tell my hairdresser when I’m not happy'
Massoud says it’s better to offer constructive criticism to work on in the future. Your hairdresser will learn, and you may discover how to communicate exactly what you want more effectively the next time.
3. ‘I will treat my hair better out of the chair’
Damage control is a big part of most hairstylists’ work right now, but it can be avoided. Steer clear of over-colouring at home, try and pursue one hair brand at a time and never, ever use a straightener on still drying hair, pleads Massoud.
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Company profile
Name: Infinite8
Based: Dubai
Launch year: 2017
Number of employees: 90
Sector: Online gaming industry
Funding: $1.2m from a UAE angel investor
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Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
What is graphene?
Graphene is extracted from graphite and is made up of pure carbon.
It is 200 times more resistant than steel and five times lighter than aluminum.
It conducts electricity better than any other material at room temperature.
It is thought that graphene could boost the useful life of batteries by 10 per cent.
Graphene can also detect cancer cells in the early stages of the disease.
The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.
