UAE economy to grow 3.2 percent in 2011

Strong oil prices joined with high public spending and recovery in Dubai to boost the UAE economy by around 2.7 percent in 2010 after a contraction in 2009 and growth will pick up to nearly 3.2 per cent in 2011, according to UN forecasts. Growth will be in both oil and non-oil sectors while strong oil prices will support economic expansion and surpluses in the country’s budget and current account. The combined GDP of the UAE and its partners in the six-nation Gulf Cooperation Council (GCC) also rebounded by around 4.3 percent last year from only about 0.4 per cent in 2009 and a surge in crude prices and public expenditure will accelerate growth to 5.2 percent in 2011.