Friday 24 May 2019

Real estate top contributor to UAE non-oil GDP

ABU DHABI, September 11, 2018

The real estate sector is the leading sector that supports the UAE economy, making up 6.4 per cent of the country’s non-oil GDP and whose overall value reached Dh81.2 billion ($22 billion) in 2017, compared to Dh79 billion in 2016.

Statistics issued by the Central Bank of the UAE show that ten vital economic sectors witnessed considerable growth, reflecting the overall rise of business activity since the start of 2018, reported Emirates news agency Wam.

The statistics also show that the construction and real estate sector took the first position among the list of sectors, with its total funding reaching around Dh306.6 billion at the start of 2018, an increase of Dh8.5 billion compared to the end of 2017.

The trade sector, both wholesale and retail, also witnessed considerable activity since the start of 2018, and it received, from banks, around Dh157 billion till the end of June, an increase of Dh4.5 billion compared to last December.

This sector made up 16.6 per cent of the country’s non-oil GDP at the end of 2017, highlighting its key role in supporting the national economy and diversifying the UAE’s income sources.

The situation is similar for the water and electricity sector, which received funding valued at Dh1 billion, raising its total funding to Dh17.7 billion at the end of June, compared to Dh16.7 billion in December 2017.

The statistics also highlight a rise in the contribution of the water and electricity sector to the country’s non-oil GDP, to 4.6 per cent in 2017.

UAE banks funded the mining and quarrying sector with around Dh800 million during the first six months of the current year, which raised its total funding to Dh12.9 billion while the funding total of financial institutions rose to Dh129 billion, an increase of Dh1.5 billion over the same period.

The banks are also offering personal funding for commercial purposes, totalling Dh3.2 billion, raising the total to Dh83.2 billion since the end of June.

The UAE is a leading country in diversifying its economic base, as the contributions of its non-oil sectors rose to 77.7 per cent in 2017 while those of its oil sectors declined to 22.3 per cent.

Tags: UAE | Construction | real estate |

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