UAE at a Glance - UAE Interact

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UAE AT A GL ANCE 2008 @ www.uaeinteract.com/economy
Continued high oil prices further boosted the UAE's consolidated financial accounts, enabling it
to post a significant budget surplus for the second year in a row, with the surplus figure almost
doubling to reach Dh72.466 billion in 2006. The impressive increase was directly linked to the 39
per cent surge in government revenues from Dh143.905 billion in 2005 to Dh200.705 billion in
2006. This was more than enough to offset the 22.8 per cent increase in total expenditure, which
achieved another all time high of Dh128.238 billion. Non-oil sector exports also played a key role
in the balance of payments, with the 2006 figure being Dh96.986 billion compared to Dh82.342
billion in 2005.
Balance of trade figures (FOB) achieved a surplus in 2006 of Dh207.072 billion against
Dh157.154 billion in 2005. Total exports (not including re-exports) reached Dh354.428 billion in
2006, compared with Dh284.619 billion in 2005, while imports rose to Dh316.276 billion in 2006
from Dh273.583 billion in 2005. As noted above, increases in production and unit prices pushed
the value of hydrocarbon exports up by 27.3 per cent in 2006, reaching Dh257.442 billion.
Non-oil exports rose to Dh23.180 billion in 2006 from Dh14.650 billion in 2005, a 58 per cent
increase. Non-oil re-exports fell by about 3 per cent to Dh91.163 billion, compared with Dh94.004
billion in 2005. Meanwhile, non-oil imports rose by just over 17 per cent to reach Dh284,453
million, from a figure of Dh242,421 million in 2005.
Inflation in the UAE during 2006 and 2007 was fuelled in part by the dirham-dollar peg,
since the latter fell against the currencies that account for the major portion of UAE imports,
making those goods more expensive in terms of the national currency. Accommodation costs
also contributed to a rising inflation rate that took many people by surprise, although attempts
have been made to address this issue by capping rents. The Government is taking additional
measures to curb inflation and considers this to be a high priority for maintenance of a healthy
economy in the UAE.