SHARJAH, 24 February 2005 — Minister of Economy and Planning Sheikha Lubna Al-Qasimi says that the UAE has achieved tremendous economic growth in the last 10 years and the prospects for growth remain strong in the coming years.
The UAE has 10 percent of the world’s oil reserves and has the fourth largest gas reserves and, these factors coupled with political stability make the UAE an ideal place for investment, she told this week’s”Dubai City of Gold Conference.”
The country’s gross domestic product (GDP) grew from 141.9 billion dirhams in 1994 to 337 billion dirhams in 2004, she said. The UAE has also demonstrated a good strategy of a diversified economy. GDP from the non-oil sector has risen from 97 billion dirhams in 1994 to 253 billion dirhams in 2004, Sheikha Lubna said.
In the last 10 years, fixed investments increased from 41 billion dirhams to 66 billion dirhams. There was notable increase in investments during the launch of large-scale projects in the manufacturing, transports, tourism, communication, electricity and water, construction and real state sectors.
Achieving sustainable and higher growth rates in all commodity sectors, enhancing the diversification efforts to reduce dependence on oil and granting the private sector a greater economic role were among the goals being pursued by the country, the minister said. She said Dubai was no longer an importer of gold, but rather a manufacturing, molding and fashioning center.
Dubai’s gold imports exceeded 503 tons in 2004, out of which 261 tons found its way through to export destinations, a re-export business worth 36 billion dirhams, Sheikha Lubna said.
She said Dubai’s strategic location as a bridge linking South-East Asia, Africa and the Middle East makes the emirate one of the most important centers of re-exports. In Dubai, more than half of the imported gold is intended for exports. The third “City Of Gold” conference is hosted by the Dubai Gold and Jeweler Group, which has more than 600 members.
More than 300 delegates from around the world attended the event, including 20 industry experts from South Africa, Britain, Turkey, Tahiti, India, Italy, Switzerland and other countries.
The Cabinet on Monday approved the 2005 fiscal budget which projects total spending at 22.7 billion dirhams and a zero deficit for the first time in two decades. The spending forecast is lower than the 23.88 billion dirhams for 2004 reflecting a deficit of 2.16 billion. The 2005 budget included an increase in revenues of 979 million dirhams and spending reduction of 1.18 billion dirhams compared with the previous year.
The budget allows more spending on education, health and other services.
The other highlights of the budget are: Maintenance of social service provision to nationals, including current levels of support to community services, farmers, fishermen and the Marriage Fund; Maintenance of residential support through the Sheikh Zayed Housing Program; Maintenance of support for fixed capital expenditure to complete budgeted projects for schools, health centers, security facilities, courts, embassies and diplomatic missions, roads and upkeep of government buildings; and continued funding of the construction of new embassies and diplomatic missions.
