Think about the UAE. What’s one thing among the wealth, innovation and development that pops up in your mind? Oil sector industry.
Well, keep in mind these numbers:
- 30 per cent in 2015,
- 20 per cent by 2021,
- zero per cent in the next 50 years.
That’s the percentage of the oil sectors revenues in the UAE’s GDP (gross domestic product).
“Our country has succeeded in just four decades to reduce dependence on oil to 30% of gross domestic product, making economic diversification a headline, and confirmed that oil is important however, it will not exceed the contribution of more than 20% of GDP by the year 2021. As concentrated our strategy at the moment to build a knowledge-based economy driven by knowledge-based multi-sector industrial sectors such as transportation, renewable energy, space and information technology,”
according to UAE Economy Minister, Sultan Bin Saeed Al Mansouri.
An economy achieves long-run economic growth through technological progress – a means of allowing greater unit growth for each unit of labor and capital therefore, the UAE is focusing on increasing its GDP by 2026 with no help from this sector.
Petrochemicals sector, automotive, including manufacturing, transport and storage, communications, financial services and farming are some of the hints given by the Minister of Economy, Sultan Al Mansouri, during the Federal National Council (FNC) session.
UAE GDP growth by 2026: Annual Investment Meeting 2016
Countries revenues in the Gulf Cooperation Council (GCC) derives most of the revenues from oil, prices of which have fallen more than 60 per cent, but these countries have been taking steps to spruce up its public finances to maintain its social and infrastructure spending.
This was the main one of the topics of discussion at the sixth edition of Annual Investment Meeting, held under the theme ‘The New World of FDI, Key Features and Best Practices’, the event will emphasizes the prominent role of Foreign Direct Investment (FDI) in emerging and developed markets, and its contribution as a key driver of economies. Successful case studies on attracting FDI flows and overcoming obstacles to this investment vehicle were highlighted at the three-day global event, which was inaugurated by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.
The event was attended by representatives of official delegations from more than 140 countries, reaffirming the UAE strength economy and its global position as a hotspot for investments across the investor spectrum.
“For us in the UAE, adapting open economic policies, sound and strategic plans pursued by the government on economic diversification base have contributed to the development of various sectors and enhance the attractiveness of the UAE’s business environment to record levels,”
UAE Economy Minister, Sultan Bin Saeed Al Mansouri, added.
The UAE aims to increase its contribution of foreign direct investment (FDI) to 5 per cent of the country’s GDP over the next five years. The country was the second largest recipient in the West Asia region according to the 2015 UNCTAD World Investment Report.
The increased FDI pushed the UAE to number one regionally and 22nd globally.