GDP ANALYSIS OF UNITED ARAB EMIRATES

Table 1.a.

Shows that the GDP of UAE in 2020 was around AED 1,311,248 million. During the same year, consumption (C) of UAE’s general public was AED 474,612 million; investments, AED 341,183 million; Government expenditures, AED 164,254 million; exports worth AED 1,324,400 million, and imports of AED 993,000 million.

It can be observed from the Table that the consumption and investment components of GDP are relatively more volatile than others over the period 2016-2020. 

Table 1.a. – Components of GDP of the United Arab Emirates at Current Prices
Source: Federal Competitiveness and Statistics Centre, UAE

Table 1.b.

explains the distribution of GDP into its components as per the expenditure approach.

It is apparent that consumption accounts for the highest share i.e. around 36.2% of the GDP in 2020 reflecting the consumption-oriented nature of the economy.

expenditures, as a percentage of GDP, were decreasing since 2016 however increased in 2019 to 13.2%.

On the other hand, investments as a percent of GDP also increased to 26.02%. In addition, net exports were volatile and remained in the range of 24-26% of GDP.

Table 1.c.

Provides the annual growth rate of the components of the GDP.

It is apparent that the GDP growth rate has declined in both 2019 and 2020 amid a global economic lockdown due to a pandemic.

A major decline is due to the decrease in government expenditure as well as contraction in consumptions.

Table 1.c. – Annual Growth Rate of Components of GDP of United Arab Emirates
Source: Federal Competitiveness and Statistics Centre, UAE

Table 2.a.

Reflects that out of AED 1,317 billion GDP, non-financial corporations account for AED 1,085.8 billion which constitute around 82 percent of GDP.

It is followed by Financial & Insurance Activities and Public Administration & Defense which account for AER 129.8 billion (or 10%) and AED 102.4 billion (or 8%) respectively.

Interestingly, unlike other oil producing economies, Mining and Quarrying only account for 17.2 percent of GDP of UAE.

Table 2.a. – Gross Domestic Product by Kind of Economic Activity at Current Prices 
Source: Federal Competitiveness and Statistics Centre, UAE

Table 2.b.

Clearly indicate that the leading activity in generating GDP in UAE has been the mining and quarrying sector with the average share of the production of 17.2% in 2020 after declining from 25% in 2019.

It is followed by the Retail and Wholesale Trade sector with a share of 13.6% of GDP in 2020. It is followed by sectors including manufacturing and construction sectors with the contribution of 9.7% and 9.3% of GDP respectively.

Broadly, non-financial corporations, Finance and insurance activities, and public administration and defense accounted for 82.4%, 9.8%, and 7.8% respectively.  

Table 2.b. – Percent Share of Economic Activities in GDP of United Arab Emirates
Source: Federal Competitiveness and Statistics Centre, UAE

Table 2.c.

provides us with the annual growth rate of economic activities in GDP in UAE.

It can be observed that almost all activities in 2020 posted negative growth rates amid Coronavirus Pandemic and the global supply-side disruption except agriculture, forestry & agriculture; education, and health sector.

Table 2.c. – Annual Growth Rate of Economic Activities in GDP of United Arab Emirates
Source: Federal Competitiveness and Statistics Centre, UAE