UAE revises up 2006 GDP growth to 9.4pc

UAE revises up 2006 GDP growth to 9.4pc
(Reuters)/21 August 2007

DUBAI — The United Arab Emirates revised up its 2006 economic growth rate to 9.4 per cent on faster expansion in the oil and gas sector, the economy ministry said.

The second-largest Arab economy expanded to Dh391.16 billion ($106.5 billion) last year, from Dh357.59 billion in 2005, according to the latest data published on the Ministry of Economy web site.

The ministry said in March real gross domestic product grew 8.9 per cent last year.

The ministry revised the growth rate to account for higher growth in the oil and gas output, which accounts for 25.9 per cent of GDP.

The value of petroleum sector output grew 6.5 per cent to Dh101.31 billion, the ministry said, compared with the Dh99.9 billion figure released in March.

"You're not going to see a growth rate that fast in the oil sector this year," said Giyas Gokkent, head of economic research at the National Bank of Abu Dhabi.

The Organisation of Petroleum Exporting Countries (Opec) agreed at two meetings late last year to cut production by a total of 1.7 million barrels per day or roughly six per cent of group output, in response to a sharp drop in oil prices. The UAE's production was rolled back to 2.5 million barrels a day from around 2.6 million barrels as part of the cuts, Gokkent said.

Economic growth in 2005 was 10.5 per cent, ministry data showed based on revised 2004 growth data. In 2003, the economy grew at 11.9 per cent.