Monday, July 23, 2007

Dubai economic diversification - 95% from non-oil sector


The Dubai Strategic Plan - 2015 (DSP), is set to maintain double-digit economic growth, achieve a GDP of $108 billion and increase real per capita GDP to $44,000 by 2011, stated Sheikh Mohammad bin Rashid Al Maktoum, UAE Prime Minister and Vice President, and Ruler of Dubai.

Sheikh Mohammed continued: "Over the last few years another very important achievement has been economic restructuring. In 2005, the non-oil sector played a major role, contributing 95% to GDP, as compared to 90% in 2000, and approximately 46% in 1975. The services sector was the driving force behind Dubai's economic growth, contributing 74% of GNP, mirroring the economies of the developed world".

"Our success in diversifying our sources of income has compensated for low oil reserves, and economic growth now depends on an infrastructure not directly affected by the oil sector.

The plan, launched under the theme "Dubai: Where The Future Begins", sets out a strategic approach that focuses on developing the emirate's most dynamic economic sectors that have been the key contributors to Dubai's annual real GDP growth rate of 13% since 2000.


The plan will not be affected by oil price fluctuations. Dubai has succeeded in diversifying its sources of income, and reducing its dependence on oil, so that, today, oil's contribution to GNP is a mere 3%", Sheikh Mohammed said.


"We have come a long way towards achieving the objectives of an economy independent of oil. Indeed we have exceeded all expectations and predictions. "When I announced my Vision for Dubai, in the year 2000, I spoke of economic aims for the year 2010. The reality is that not only have these aims been realized but they have been realized in half the time


The services sector was the driving force behind Dubai's economic growth, contributing 74% of GNP, mirroring the economies of the developed world".

"Our success in diversifying our sources of income has compensated for low oil reserves, and economic growth now depends on an infrastructure not directly affected by the oil sector. .

read more - Forbes Special Section - July 2007

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