Dubai, 1Jan 05 (WAM) -- Mohamed Ali Alabbar, Director General,Dubai Department of Economic Development (DED) describedthe year 2004 as "a golden year," asserting that most of Dubai's economicsectors had broken previous growth records in the year.

Statistics compiled by the DED suggest that the Emirate's GDP rosehistorically by 16.7 per cent in 2004 to touch almost Dh 100 billion,as measured by current prices.

Affirming that 2004 had been one of the best periods for the UAEeconomy in general and Dubai in particular, he said that he anticipatedthis strong growth to continue throughout 2005, predicting that Dubai'sGDP would touch the Dh 110 billion mark and achieve 10 per cent growthat current prices.

"At current prices, Dubai's GDP has recorded a phenomenal increaseto Dh 98.1 billion in 2004 up from Dh 84.1 billion in 2003," said Mr.

Alabbar. "When compared to Dh 62.3 billion in 2000 and Dh 41.2 billionfor the year 1995, this puts the accumulated annual growth of Dubai'seconomy in the last decade at 10 per cent, the highest rate of growthin the world," he explained.

"The phenomenal growth in 2004 is the result of several factors, including the ambitious initiatives launched by General Sheikh Mohammedbin Rashid AI Maktoum, Crown Prince of Dubai and UAE Defence Minister,'said the DED Director General. "The Government of Dubai's unlimited supportfor the private sector coupled with dramatic increase in local spending,the constant growth of non-oil sectors and the sustained high oil priceshave all contributed to Dubai achieving record growth rates,'' he added.

Mr. Alabbar pointed out that last year's performance indicators alsoreflected the success of the economic diversification policy of the Emirate.

He said the policy had added maturity and vitality to the economy by enablingit to develop resistance to any unforseen circumstances faced by one orother sectors and asserted that the momentum would be sustained for manyyears to come.

"The expansion and development in the non-oil sectors have played apivotal role in the growth of the Emirate's GPP, despite the sustainedhigh oil prices," he said. "Although oil contribution to the GDP grew10.9 per cent in 2004, the corresponding growth of 17 per cent in thecontribution of non-oil sectors enabled Dubai's GDP to reduce its dependencyon oil to 6 per cent in 2004 down from 7 per cent in 2003," he added.

"Measured by current prices, the contribution of non-oil sectors tothe emirate's GDP has increased from Dh 78.22 billion representing 93.4per cent in 2003, to Dh 91.5 billion representing 94.3 per cent in 2004.

This is a signifIcant increase when compared to Dh 55.9 billion in 2000and Dh 34 billion in 1995," he said.

Mr. Alabbar noted that the positive growth in 2004 was clearly reflectedin the continuous inflow of foreign capital - a trend that is expectedto be maintained with the prevailing lucrative return on investment inkey sectors. In addition, the aggressive initiatives by the goveromentand large companies in the Emirate have helped local and internationalinterest rates to stabilize at low levels, encouraging private investmentsand offering opportunities for a wide spectrum of segments.

"Economic indicators showed a quantum leap in the construction sectorfor the third year in line, making it one of the key elements of growthbesides trade, tourism and aviation," said Mr. Alabbar. "The growth incross sector relations has further vitalized these sectors with the increasein tourist numbers having a positive impact on trade and services, tourismand trade benefitting from the continuous growth in the services sectorand the exceptional growth of the construction sector creating similarpositive impact on trade, services and banking." he added.

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