13.3% increase in Dubai's real GDP in 2004
In 2004, oil represented 32.5% of the UAE real GDP, compared to only 6.1% of Dubai real GDP which was around 8% in 2001. Table 1 shows that Dubai total real GDP stood at AED 111 billion in 2004 compared to AED 98 billion in 2003, recording a growth of 13.3%.
Dubai's economic performance is outstanding, as the Emirate has achieved higher increase over all components of its economy, according to a new report in the DCCI's Economic Bulletin.
The trade and repairing services sector had the largest share of Dubai economy in 2004 (20%). This sector is important to Dubai's economy as it recorded an increase of 110% during the period 2001-2004.
In the second place came the manufacturing (14.6%) which increased from AED 35.1 billion in 2001 to AED 49.5 billion in 2004. Figure 2 shows the manufacturing sector GDP for Dubai and the UAE during the period 2001-2004.
Transport, storage and communication sector was ranked third in terms of contribution to Dubai real GDP (13.7%). This sector's GDP increased by 49% during the last four years on annual growth rate of 14.2%. The sector represented 56% of the UAE transport, storage and communication sector in 2004.
The forth and fifth places were occupied by both the construction and real estate sectors (12.2% and 10.6%, respectively). There is a direct relationship between the real estate sector and the construction sector as the booming of the real estate sector influences the construction sector strongly.
The construction sector in Dubai has grown with an annual average growth rate of 37.4% during the period 2001-2004, reflecting the construction boom being witnessed in the Emirate. The sector represented 47% of the UAE construction sector in 2004, up from 29.7% in 2001.
Dubai real estate sector achieved 86% increase during the period 2001-2004 and an annual growth rate of 16.7%. The sector witnessed a boom during the recent years and it is expected to continue in the same trend in the short and medium run. The value of the planned projects to be executed in the coming 5 years is estimated at more than $ 30 billion. The sector real GDP represented 39.7% of UAE real estate sector GDP in 2004. The financial sector came in the last place representing 9.5% of total Dubai real GDP in 2004. The sector's share in Dubai real GDP has increased by 40% during the period 2001-2004. The financial sector in Dubai represented 47% of the UAE financial sector in the year 2004.
The 13.3% increase in Dubai real GDP in 2004 was mainly driven by high growth in its major sectors such as trade & repairing services (10.7%), manufacturing (15.5%), construction (12.6%), real estate (19.8%), financial (12.6%) and transport, storage & communication (9.6%).
Finally, the several economic indicators point to a sound economic structure with non-oil structural backbones demonstrating the successful diversification pursued by Dubai Government, the report added.
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