UAE’s balance of payments’ surplus dropped by more than 50 per cent in 2014, amounting to AED34 billion, down from AED73bn in 2013, according to official figures.
The 53 per cent decline in the country’s balance of payments’ surplus was mainly driven by the major drop in oil and hydrocarbons exports – by approximately AED65bn, according to a report by the Central Bank of the UAE.
UAE’s oil exports fell by 13.4 per cent to AED410bn in 2014, as against AED475bn in 2013.
However, the report points out the national economy was able to alleviate the impact of the drop in oil prices during 2014 by increasing economic diversification and dependence on non-oil sectors, thus, maintaining growth sustainability.
Furthermore, the national economy managed to increase non-oil exports by 8.2 per cent to AED413bn in the past year, compared with AED382bn in 2013, therefore, offsetting the decline in oil exports.
According to the report, the Emirates’ imports edged up by 4.2 per cent in the past year reaching AED881bn, compared with AED845bn in 2013.
Despite a slower economic growth pace in 2014, the report delivers an upbeat projection of the national economy’s outlook for 2015, saying that it will post strong growth.