UAE-China trade hits $10bn
China’s trade with the UAE which crossed $10 billion last year is poised to grow 30-40 per cent in the short term on the back of the two booming economies and the likely sealing of a free trade agreement, top Chinese government officials said.
“In 2005, trade between China and the UAE was $10.7 billion, making it the second biggest trading partner of China in the Gulf after Saudi Arabia whose trade touched $16 billion,” said Cao Jiachang, representing the Department of West Asian and African Affairs in China’s Ministry of Commerce.
China’s trade with the UAE grew by 32 per cent in 2005 over 2004 and due to the robust economic development in both countries in recent years, the trade is expected to maintain 30-40 per cent growth in the coming years, he said.
Cao said that of China’s $8.7 billion exports to the UAE, a large part is re-exported to neighbouring countries.
“Also, there are about 1,000 Chinese companies in the UAE and cooperation between the two countries can further improve. We foresee a bright future once the FTA is signed,” he said.
Meanwhile, trade between the US and the UAE increased to Dh36.5 billion ($9.95 billion) in 2005 compared to Dh19.2 billion in 2004, according to official reports.
The US Trade Department said in a recent report that investment laws and regulations are evolving in the UAE, and are expected to make the business climate more hospitable to foreign investment. Total US foreign direct investment in the UAE is $2.3 billion.
UAE GDP up 17pc
The UAE’s gross domestic product rose 17 per cent in 2005 to Dh443 billion ($120.6 billion) in current prices on high oil revenue, a report by the chambers of commerce and industry union said.
The report carried by Wam said the GDP in 2004 was Dh387.7 billion.
The report said total investment in the public and private sectors was estimated to be Dh85 billion last year. Surplus in balance of trade rose to Dh95 billion as the value of oil and non-oil exports rose to Dh365 billion versus Dh304 billion in 2004, it said.
In September, the economy ministry had said it expected 2005 economic growth to slow down, forecasting a GDP rise of 11.9 per cent compared to 17.7 per cent in the previous year.
Dubai $1.6bn surplus
Dubai has projected a surplus of nearly $1.6 billion in its budget for fiscal 2006. Expenditure is projected at Dh72.9 billion ($19.8 billion) against revenue of Dh78.7 billion, said a Wam report.
Dubai projected a budget surplus of nearly $1.1 billion last year. Analysts welcomed the budget, saying it reflected Dubai’s booming economic growth.
The increase in revenues for 2006 is estimated at Dh22.7 billion, said the report. The budget included two basic sectors, the public and economic.
Revenues of the public sector reached Dh19.8 billion, while its expenditures were estimated at Dh18.5 billion, with a surplus of Dh1.3 billion.
The economic sector’s revenues reached Dh58.9 billion, and its expenditures were estimated at Dh54.4 billion, with a surplus of Dh4.5 billion.
Last year, the total expenditure was projected at Dh52 billion against a net income of Dh56 billion, leaving a surplus of Dh4 billion.
Since Dubai has no foreign debt, the surplus would probably go to government reserves, the experts felt. It will also give a further push to develop the non-oil sector. This year’s budget will also prove a real boost for businesses.
Kuwait population rises
The population in Kuwait rose by 8.7 per cent last year to 2.99 million, mainly due to a sharp increase in foreign population, according to published reports.
The expatriate population in the state rose by a record 11.2 per cent to nearly two million at the end of last year compared to 1.8 million at the end of 2004, a report by Al Shall Economic Consultants said.
The increase boosted the percentage of foreign workers and their families in Kuwait to two-thirds of the population, the report said.
Kuwait’s citizen population rose by 3.8 per cent to 992,200 from 956,000 at the end of 2004, said the report, which is based on figures by the state Public Authority for Civil Information.
The labour force also increased by 12.8 per cent last year to 1.82 million from 1.61 million the previous year, with foreigners representing a massive 82.4 per cent of the total. About 86 per cent of the national workforce of 320,500 is employed in the government as Kuwaitis form less than two per cent of private-sector workers.
Qatar’s plans
Qatar hopes to spend a staggering $55 billion to $60 billion on non-energy projects over the next seven to 10 years, Minister of Economy and Commerce Sheikh Mohamed bin Ahmed Al Thani said.
The investments are to focus on a host of key ventures such as transport and infrastructure, tourism, sports and industry, including the new airport project and road networks in Doha.
“Our investment in tourism will cover new hotels and complexes, while the investment in sports covers from the Aspire project to a range of other top-tier stadiums and facilities that will be required for the Asian Games fixture in December this year,” said the minister.
Yemen economy expands
Yemen’s economy grew 4.6 per cent last year and its foreign debt went down 3.5 per cent to $5.17 billion, the Saba news agency reported.
“Gross domestic product (GDP) grew 4.6 per cent or 19 per cent by current prices,” Saba quoted a central bank report as saying. The report on economic performance presented to the cabinet said the balance of payments showed a surplus of $584 million. It also showed a current account surplus of $1.22 billion.
It said the rial fell by 3.6 per cent against the US dollar, while it declined about 10 per cent against other major currencies.
According to the World Bank, over 42 per cent of the country’s 19 million people live below the poverty line, illiteracy is around 50 per cent and unemployment over 20 per cent.
