ABU DHABI, Jan 29th, 2006 (WAM) - A surge in oil prices alliedwith higher exports of non-oil products and services allowedthe UAE to record its highest ever current account surplus in2005 and the balance is projected to remain high this year, accordingto a Western report.

The surplus stood at $25.7 billion in 2005, more than doublethe 2004 surplus of around $12.7 billion kin 2004, said the reportby the Economist Intelligence Unit (EIU), an affiliate of theLondon-based Economist Group.

As oil prices are projected to remain high this year and theUAE's will maintain high crude output, the current account willagain record a surplus of as high as $22.3 billion although itwill slip to nearly $15.4 billion in 2007.

The 2005 surplus accounted for nearly 21.9 percent of the grossdomestic product, one of the highest ratios in the world.

The report estimated the UAE's average oil production at around2.39 million barrels per day in 2005 and expected it to riseto 2.45 million bpd and to a record 2.52 million bpd in 2007.

Oil export revenues were estimated at around $42.5 billion in2005 and were projected at $43.1 and $37.5 billion in 2006 and2007.

Strong oil prices also enabled the UAE to boost spending andthis has positively affected its economic performance, with realgrowth standing at 6.7 percent in 2005 and projected at 5.9 and5.1 percent in 2006 and 2007.

According to the report, the UAE's total exports hit a record$103.1 billion in 2005and they are forecast to climb furtherto $106 billion in 2006. Imports also reached their highest levelof $60.2 billion in 2005 and are expected to hit a record $65.6billion in 2006 as a result of a business upswing.