UAE's Goal: Diversify the Economy

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(ABU DHABI, UAE) -- The UAE is continuing to diversify the economy away from reliance on oil production and oil-related manufacturing, according to Minister for Foreign Trade Sheikha Lubna Al Qasimi. She pointed out that the non oil sector contributed 71 percent of the country's net domestic product in 2009, an increase of 8 percent compared to 2008.

"The UAE always works to bolster revenue sources via diversification and is attracting most of the foreign investment flows to the region," she said. The country is now emphasizing development of renewable energy, airplane components and manufacturing, technology, tourism and education, "while also boosting the country's services sector," Sheikha Lubna added.

Given its location in the Gulf, near India and accessible to Asian and African markets as well as the entire Middle East, the UAE has become a hub for re-exports. The huge Jebel Ali port and free zone, Dubai International Airport, and the brand new Al Maktoum Airport provide import-export infrastructure in greater Dubai. Down the road in Abu Dhabi, the Taweelah port and free zone is being constructed which will dwarf Jebel Ali when it is completed.

Sheikha Lubna highlighted the UAE's trade results which stood out against the background of an almost 12 percent decline in global trade last year. UAE exports grew by 8.1 percent in 2009. "Additionally, the balance of trade improved by 31 percent in the same year, achieving a surplus of Dh107 billion [$29 billion]," she explained. The volume of trade with the Arab world, immediate neighbors in the GCC, and with the US increased. The UAE is now the biggest importer of US goods in the region.

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