DUBAI — The UAE's economic growth will top 3.5 percent this year as the non-oil sector continues to expand despite the oil price slump, said Sultan Al Mansouri, the Minister of Economy. National GDP will rise to Dh1.6 trillion this year from AED1.5tn last year, according to a statement yesterday from the minister. The UAE was able to maintain its economic growth because of its diversification policy and increased reliance on the non-oil sector, said Al Mansouri. The industrial sector, for example, contributes between 10 and 14 percent of GDP. Industrial investments in the UAE would double in five years, said the minister. The ministry, he said, was also working on strengthening the economy's competitiveness by boosting foreign direct investment flows and improving economic ties with other countries. The IMF has forecast UAE economic growth of 3 percent this year, down from 4.6 percent last year, as the oil slump results in weaker real estate and corporate activities. The price of the benchmark Brent crude has plunged about 50 per cent this year to under $50 per barrel because of the supply glut and weaker demand in Asia. A strong US dollar has also weighed on oil prices. The IMF also said that government spending cuts would affect economic growth in the UAE. It expects the country's non-oil GDP to grow 3.4 percent this year, versus 2 percent for the oil sector. — Agencies
