A combination of higher oil prices, a larger non-oil sector and greater foreign direct investment (FDI) could help the UAE overcome woes from the global economic recession and the Dubai debt crisis.
The country is making a slow but certain recovery with the International Monetary Fund forecasting growth of 0.6 per cent this year against a contraction of 0.7 per cent in 2009. Abu Dhabi, whose non-oil sector grew by 6.3 per cent compared to a contraction of 1.3 per cent in the corresponding sector in Dubai, is best placed to spearhead the economic push. Overall the UAE’s non-oil growth was just 1 per cent in 2009.
There are no grounds for a gloomy outlook for the UAE as the country has strong fundamentals to withstand shocks and move forward. Abu Dhabi is one of the leading oil producers and the infrastructure sector is sound and expected to develop radically in the next few years with Abu Dhabi taking the lead over other emirates.
The emirate has declared it will give priority to infrastructure in government spending as part of its long-term development blueprint intended to achieve sustained growth.
Infrastructure is a main driver for development and building it has gained more importance now in view of the realisation that the emirate will not achieve this year its planned annual seven per cent growth of its Vision 2030.
Egypt's Al Ezz Dekheila Steel, a unit of Ezz Steel, posted a 78 percent decline in its 2009 consolidated net profit to 641.7 million Egyptian pounds ($117 million), beating two forecasts.
Oman's Sohar Aluminium, part-owned by a unit of global miner Rio Tinto, sees gas shortages as the main obstacle to further expansion, a top executive said.
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Egypt's Al Ezz Dekheila Steel, a unit of Ezz Steel, posted a 78 percent decline in its 2009 consolidated net profit to 641.7 million Egyptian pounds ($117 million), beating two forecasts.
Oman's Sohar Aluminium, part-owned by a unit of global miner Rio Tinto, sees gas shortages as the main obstacle to further expansion, a top executive said.
