Tuesday, March 11, 2008

Real Estate Sector biggest contributor to UAE's GDP last year

The UAE economy has achieved significant growth record of 7.4 percent in 2007 over the previous year, with the gross domestic product (GDP) touching Dh.698bn, announced the UAE Ministry of Economy.

As per the Ministry's report, the biggest contributor to the UAE's GDP is the fast emerging real estate sector. During 2007 the real estate contributed 8 percent to the country's GDP, with an investment of Dh.25.8billion. The government has shown considerable interest in assisting UAE nationals to own free residential units through various residential plans that offer good standard of living and stability.

About 23.1billion (16 percent of total investment) has been put forward for establishment of developed infrastructure, including airport expansions, internal and external road networks, bridge and tunnel constructions and communications.

The size of fixed investments in 2007 has grown to Dh.144.5 billion, as against Dh.121 billion in 2006. The investment percentage to domestic product has touched 20.7 percent in 2007. Although the real estate and manufacturing sectors, jointly, contributed 35 percent of the total investments in the country during 2007, industries such as medicine, petrochemical, building materials, and food continued to surge.

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