Liberalization of the UAE’s real estate laws is seen as one of the main factors in recent projections that the UAE's nominal GDP will reach $161.3 billion in 2006.
"The average crude oil prices are 30 per cent higher in 2006 and this is having a positive impact on the GDP in 2006. But the non-oil sector is also growing fast with liberalization of real estate laws and supported by a tax-free environment," said Dr. Giyas Gokkent, Head of Research at the National Bank of Abu Dhabu that carried out the report, according to Gulf News.
High oil prices and the current account surplus projected to rise to $28.1 billion, the report added.
"Assuming that oil prices will remain at current levels, the GDP for 2007 is projected to go up to $178 billion," is stated.
According to NBAD's third quarter Economic Quarterly, the UAE's current account balance will reach $28.1 billion in 2006, representing 17.4 per cent of the national income compared to $19.1 billion last year. It is projected to touch $29.8 billion in 2007.
"Again the high oil exports have impacted the current account balance positively. As exports have risen on the back of free zone growth and oil exports, the current account surplus reached 14.7 per cent of GDP in 2005 and is projected to be 17.4 per cent this year and 16.7 per cent next year," Gokkent said.