Minister Discusses UAE Economy with Students of National Defense College

Dubai-UAE: 13 January 2016 - His Excellency Engineer Sultan bin Saeed Al Mansouri, Minister of Economy, received a student delegation from National Defense College (NDC) led by Brigadier General Naval Staff Abdullah Mabrook Al Amr.

His Excellency Abdullah Al Saleh, Undersecretary for Trade and Industry, and Mohammed Al Shehhi, Undersecretary for Economic Affairs, were among the Ministry officials present at the meeting.

Offering a comprehensive overview of the national economy to the NDC students, Al Mansouri said the GDP is estimated to have increased from US$400 billion in 2014 to US$430 billion in 2015. Real GDP in 2015 is estimated to have grown by 3%.

He added that the total foreign trade volume for the UAE increased from US$257.8 billion in 2009 to reach US$444.4 billion in 2014. Top trade partners for the UAE include India followed by China, USA, Iran, Germany, Japan, Switzerland, Saudi Arabia, UK, and Belgium.

Regarding foreign direct investment (FDI), Al Mansouri said the UAE’s investment environment is marked by stability, modern infrastructure, effective economic policy, and modern economic legislation. The nation offers access to regional markets, free transfer of profits, revenues and assets, and protection of foreign capital. The UK, India, France, Japan, USA, Kuwait, Australia, Saudi Arabia, Switzerland, and the Netherlands are among the top countries investing in the UAE.

The NDC students were further informed that financial intermediation, real estate, wholesale and retail, manufacturing, mining and quarrying, construction, transportation and storage, and supply of electricity, gas and air conditioning are some of the most attractive sectors for FDI in the UAE. FDI flows have seen a major increase from US$4 billion in 2009 to US$11.85 billion in 2014.

Focusing on the transformation of the UAE into a global aviation hub, Al Mansouri said it is estimated that the contribution of civil aviation to the country’s GDP is currently 12%. Projections suggest that this number will increase to 32% by 2020. Aviation is critical to the country’s economy, with the sector opening foreign markets to UAE exports, lowering long-distance transport costs, and increasing the flexibility of labor supply. Industry reports estimate that economic growth from the aviation sector will create up to 750,000 jobs by 2020. The Minister reiterated the UAE will maintain its open skies policy and enhance its efforts to secure more open skies with new countries.

Al Mansouri quoted global indices and reports, highlighting the robustness of the national economy. The UAE ranked 16th on the Enabling Trade Index and 17th on the Global Competitiveness Report for 2015-2016. The country also holds the 31st place on the Ease of Doing Business Index.

According to the Minister, the UAE government remains positive about the country’s economic outlook despite the fall in global oil prices. He further pointed out that the UAE’s diversification policy has helped neutralize the oil price decline, a fact that is clearly validated in the nation’s zero-deficit 2016 budget.