Manufacturing expanded by 5.9 per cent last year revealing grounds for optimism in an important non-oil segment of the economy. Jumana El Heloueh / Reuters
Manufacturing expanded by 5.9 per cent last year revealing grounds for optimism in an important non-oil segment of the economy. Jumana El Heloueh / Reuters

Oil prices give economy its best year for half a decade



The UAE posted its best economic growth for five years last year - an impressive feat amid adverse global conditions.

But to focus only on the official GDP expansion rate of 4.2 per cent does not paint a complete picture of the economy. A large part of last year's rise was attributable to greater oil output and higher crude prices.

The Emirates increased production to offset lower output from Libya resulting from civil war in that country. The resulting higher revenues raised the amount of money for the Abu Dhabi Government to invest in areas such as infrastructure and social spending. But higher oil output has an impact on efforts to diversify the economy.

Last year, the contribution of the non-oil sector to the economy fell to 61.6 per cent from 69.1 per cent the year before, official data released yesterday by the Ministry of Economy shows.

For the longer term, officials are targeting a cut in the reliance on crude to guard against the risk of a repeat of 2009, when lower oil prices dragged the economy into a decline. It recovered in 2010 with growth of 1.3 per cent.

"The percentage contribution of oil has gone up, but it will come down again," Sultan Al Mansouri, the Minister of Economy, said yesterday. "Our policy is to diversify and get away from a reliance on oil and ensure its contribution is 20 to 25 per cent [of the economy]."

Limited room for increases in oil production this year is expected to help to tilt the balance back towards non-oil economic segments.

But lower rises in output combined with an uncertain global economy are likely to mean GDP growth moderates this year. Economic growth would drop to about 3 per cent this year, Mr Al Mansouri forecast.

"This year I expect the non-oil sector to bounce back, as spending in Gulf economies usually picks up in the second half of the year, and as the Dubai economy in non-oil picks up," said Shady Shaher, the senior economist for the Middle East and North Africa at Standard Chartered.

Data the ministry released yesterday revealed grounds for optimism in some non-oil segments of the economy.

After falling 11.4 per cent in 2010, manufacturing expanded by 5.9 per cent last year.

The transport, storage and communications sectors, other economic pillars, grew 4 per cent after a 5.5 per cent dip the previous year. Wholesale and retail trade and repair services bounced back from a 10.2 per cent dip in 2010 to expand 8 per cent last year.

But construction was still under strain, the data showed. Growth in the sector fell back to 2.8 per cent from 3.1 per cent in 2010.

A sharp drop in property prices as a result of the financial crisis sapped appetite for new building projects. Property prices have fallen more than 60 per cent in parts of Dubai and to a lesser extent in Abu Dhabi since the middle of 2008.

"The large supply overhang and the completion of additional projects in the coming years render an early and broad-based recovery of the sector unlikely," the IMF said in a report last month.

And to help to further revive the fortunes of businesses, economists say, credit growth needs to pick up.

Sluggishness continues to beset lending, an important driver of GDP before the global financial crisis.

The outlook for lending is expected to continue to be muted this year.

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Results

1. Lewis Hamilton (Mercedes) 1hr 32mins 03.897sec

2. Max Verstappen (Red Bull-Honda) at 0.745s

3. Valtteri Bottas (Mercedes) 37.383s

4. Lando Norris (McLaren) 46.466s

5.Sergio Perez (Red Bull-Honda) 52.047s

6. Charles Leclerc (Ferrari) 59.090s

7. Daniel Ricciardo (McLaren) 1:06.004

8. Carlos Sainz Jr (Ferrari) 1:07.100

9. Yuki Tsunoda (AlphaTauri-Honda) 1:25.692

10. Lance Stroll (Aston Martin-Mercedes) 1:26.713,

If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Disclaimer

Director: Alfonso Cuaron 

Stars: Cate Blanchett, Kevin Kline, Lesley Manville 

Rating: 4/5

Feeding the thousands for iftar

Six industrial scale vats of 500litres each are used to cook the kanji or broth 

Each vat contains kanji or porridge to feed 1,000 people

The rice porridge is poured into a 500ml plastic box

350 plastic tubs are placed in one container trolley

Each aluminium container trolley weighing 300kg is unloaded by a small crane fitted on a truck

UAE%20v%20West%20Indies
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The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
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Business Insights
  • As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses. 
  • SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income. 
  • Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.

Electoral College Victory

Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate. 

 

Popular Vote Tally

The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.

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Kanguva
Director: Siva
Stars: Suriya, Bobby Deol, Disha Patani, Yogi Babu, Redin Kingsley
Rating: 2/5
 
Nayanthara: Beyond The Fairy Tale

Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni

Director: Amith Krishnan

Rating: 3.5/5

The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
Company%20profile
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COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners

The Beach Bum

Director: Harmony Korine

Stars: Matthew McConaughey, Isla Fisher, Snoop Dogg

Two stars

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TO A LAND UNKNOWN

Director: Mahdi Fleifel

Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa

Rating: 4.5/5

COMPANY%20PROFILE
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The five pillars of Islam

Price, base / as tested From Dh173,775 (base model)
Engine 2.0-litre 4cyl turbo, AWD
Power 249hp at 5,500rpm
Torque 365Nm at 1,300-4,500rpm
Gearbox Nine-speed auto
Fuel economy, combined 7.9L/100km

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