U.A.E.: UAE economy outlook in medium term depends on performance of non-oil sectors: EIB.

(From The Emirates)

Oil revenues are not expected to rise significantly in the coming years, and the medium term outlook in UAE would considerably depend on the performance of the non-oil sectors, according to a new review of the UAE economy in the medium term by the Emirates Industrial Bank, EIB. The EIB review stated that according to figures of the UAE Ministry of Planning, the UAE economy grew by an average 8.2% per annum during the past five years (i.e. 1997-2002). After a GDP decline in 2001, firm oil prices led the economy to peak again in 2002, marginally crossing the earlier high of 2000.

"Non-oil sectors have contributed the majority part of this growth, as stable oil prices and an oil production fixed by OPEC enabled only a marginal increase in oil revenue in these years," the EIB report said. In terms of outlook the report stated: "Though the non-oil sector expanded significantly during the years 1997-2002, oil revenues still remain the backbone of the economy. "Oil revenues are not expected to rise significantly in the coming years, and the medium term outlook in UAE would considerably depend on the performance of the non-oil sectors.

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