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UAE non-oil sector forecast to grow 4.6 per cent in 2015

Country’s market money base expanded to AED295bn in June and GDP is to expand by four per cent

The non-oil sector of the United Arab Emirates’ economy is projected to grow by 4.6 per cent in the current year and the oil sector by 2.6 per cent, according to an official report.

The country’s gross domestic product is to expand by four per cent compared with 4.6 per cent in 2014, the UAE central bank says in its quarterly review.

Detailing growth ratios in the various sub-sectors of the non-oil economy, the bank says it expects the manufacturing to grow three per cent; the construction sector seven per cent; wholesale and retail trade five per cent; transport and communication eight per cent and the real estate and business services by four per cent.

Meanwhile, central bank data showed that the country’s market money base expanded by AED2.2 billion in June to stand at AED295bn from AED293bn in May, Al-Ittihad reports.

The rise in the money base is mainly driven by the higher volume of issued currency and deposits certificates. The figures also revealed that banks’ required reserves increased by AED33 million to reach AED109bn.

Furthermore, the bank’s data revealed that the value of cash in circulation amounted to AED13.7bn after rising by AED400m when compared with the figure recorded in May.