During a year in which jitters about the US Federal Reserve’s tapering of monetary stimulus and a cooling in China’s economy took a toll on emerging markets, growth in the UAE surprised on the upside. Overall GDP reached 5.2 per cent, according to data released on Sunday by the National Bureau of Statistics. That was ahead of Turkey (4 per cent), India (4.7 per cent), Brazil (2.3 per cent) and Russia (1.3 per cent), which felt the fallout from currency swings and sluggish investment.
The UAE’s growth rate was the fastest since 2007 and also ahead of a forecast of 4.8 per cent by the IMF. The rate of expansion is a reflection of the UAE’s rapidly emerging status as a haven for stability in a region still beset by turmoil, as well as a sharp recovery in domestic consumer demand.
The economy was also shielded from the strife in other emerging markets thanks to the dirham’s currency peg to the US dollar and the predominant absence of foreign investors from its stock markets.
Finally, relatively high oil output and crude prices also provided a boost. Crude output averaged 2.8 million barrels per day, up from 2.64 million in 2012.
Prices averaged US$108 per barrel during the year, the bureau estimated. The oil sector expanded by 4.8 per cent, compared with 5.4 per cent growth in the non-oil part of the economy. The non-oil sector accounted for 67.3 per cent of overall output, the data showed.
Still, officials will be mindful that the largest contributor of growth outside the oil and gas sector was “property and business services”, accounting for 12.3 per cent of GDP and swelling 8.7 per cent during the year.
The sector expanded at a much faster rate than three of the other main pillars of the economy – trade; transport and communications; and manufacturing, which recorded growth of 2.4 per cent, 7.3 per cent and 1.2 per cent, respectively.
Last year’s property sector growth followed two subsequent years of double-digit expansion rates. Combined with transport and communications, the two sectors were the biggest drivers of total overall output. As the property market has revived, it has also stimulated a restart of construction projects. Last year was the first time since 2009 that construction provided a positive lift to growth, accelerating by 3.3 per cent.
A debt-inflated bubble in the property market was a key propeller of output in the boom years up to six years ago. When investor sentiment cooled in the wake of a global credit crunch, prices collapsed by more than half in the following two years.
Output sagged in 2009, as a result. Several officials had expressed hope at the time that the downturn would allow for a rebalancing of the economy, giving property a backseat role and enabling the UAE’s historic drivers of logistics and trade to take the strain.
The shift would allow for more stable expansion in the long run. The latest data shows that property is firmly back in the economy’s driving seat.
This year, the growth outlook remains promising. Dubai’s selection in November as the host of the World Expo 2020 has lifted business sentiment, while supporting activity in the wider economy.
The inclusion from this month of several UAE stocks in the index provider MSCI’s Emerging Markets Index is placing the country on the radar of more foreign investors. The property market may also be cooling off, according to recent property data from the first quarter of this year. Although that could pin back growth, it would likely help temper the risk of another potentially destabilising property bubble developing.
The oil sector’s role is also likely to retreat. As oil output had declined to 2.61 million barrels per day last month, the overall contribution of the sector to GDP was expected to decline, estimates Alp Eke, senior economist at National Bank of Abu Dhabi. He forecasts growth of between 4.1 and 4.2 per cent this year. That is still likely to be better than Turkey, Brazil and Russia this year, if not India.
tarnold@thenational.ae
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A timeline of the Historical Dictionary of the Arabic Language
- 2018: Formal work begins
- November 2021: First 17 volumes launched
- November 2022: Additional 19 volumes released
- October 2023: Another 31 volumes released
- November 2024: All 127 volumes completed
COMPANY%20PROFILE
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Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The specs: Macan Turbo
Engine: Dual synchronous electric motors
Power: 639hp
Torque: 1,130Nm
Transmission: Single-speed automatic
Touring range: 591km
Price: From Dh412,500
On sale: Deliveries start in October
PFA Premier League team of 2018-19
Allison (Liverpool)
Trent Alexander-Arnold (Liverpool)
Virgil van Dijk (Liverpool)
Aymeric Laporte (Manchester City)
Andrew Robertson (Liverpool)
Paul Pogba (Manchester United)
Fernandinho (Manchester City)
Bernardo Silva (Manchester City)
Raheem Sterling (Manchester City)
Sergio Aguero (Manchester City)
Sadio Mane (Liverpool)
The specs: 2019 Aston Martin DBS Superleggera
Price, base: Dh1.2 million
Engine: 5.2-litre twin-turbo V12
Transmission: Eight-speed automatic
Power: 725hp @ 6,500pm
Torque: 900Nm @ 1,800rpm
Fuel economy, combined: 12.3L / 100km (estimate)
Company%20Profile
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Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).
All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.
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How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
RESULTS FOR STAGE 4
Stage 4 Dubai to Hatta, 197 km, Road race.
Overall leader Primoz Roglic SLO (Team Jumbo - Visma)
Stage winners: 1. Caleb Ewan AUS (Lotto - Soudal) 2. Matteo Moschetti ITA (Trek - Segafredo) 3. Primoz Roglic SLO (Team Jumbo - Visma)
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
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COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%3A%3C%2Fstrong%3E%20Eco%20Way%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20December%202023%3Cbr%3E%3Cstrong%3EFounder%3A%3C%2Fstrong%3E%20Ivan%20Kroshnyi%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Electric%20vehicles%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Bootstrapped%20with%20undisclosed%20funding.%20Looking%20to%20raise%20funds%20from%20outside%3Cbr%3E%3C%2Fp%3E%0A
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
What is graphene?
Graphene is a single layer of carbon atoms arranged like honeycomb.
It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were "playing about" with sticky tape and graphite - the material used as "lead" in pencils.
Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But as they repeated the process many times, the flakes got thinner.
By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment had led to graphene being isolated for the very first time.
At the time, many believed it was impossible for such thin crystalline materials to be stable. But examined under a microscope, the material remained stable, and when tested was found to have incredible properties.
It is many times times stronger than steel, yet incredibly lightweight and flexible. It is electrically and thermally conductive but also transparent. The world's first 2D material, it is one million times thinner than the diameter of a single human hair.
But the 'sticky tape' method would not work on an industrial scale. Since then, scientists have been working on manufacturing graphene, to make use of its incredible properties.
In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics. Their discovery meant physicists could study a new class of two-dimensional materials with unique properties.
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
