Considering the strength of UAE real GDP growth to 5.2 percent in 2013, driven by the expansion in non-oil sector, strong momentum existed in 2014, as the real GDP growth forecasted at 4.3 percent according to the latest IMF World Economic Outlook amidst a sound non-oil sector growth coupled with moderation of oil sector growth. Leading financial and economic indicators actually all points to continued strong non-hydrocarbon growth driven by tourism, transportation, trade, real estate and the financial sector.
Undoubtedly UAE has successfully diversified its economy in recent years. The share of non-hydrocarbon in total GDP has exceeded to 70% today against 53% in 2000. Similarly, non-oil exports as a percentage of total exports exceed two-thirds nowadays, the highest among oil exporting countries in the region.
4. Diversification of the economy of The United Arab Emirates.
4.1 The period of the economic crisis of UAE i.e., from 2007-10 witness an increase in the levels of domestic tourism as consumers intimidated by the uncertain economic environment chose to manage costs by holidaying domestically. The government of UAE, seizing on this trend post-economic crisis, has made investments in increasing and sustaining the levels of domestic tourism in the country through initiatives like Summer fest Abu Dhabi, Dubai Sports World, Summer is Dubai and Dubai Rock Fest; thus resulting in the steady, strong growth seen in the review period over the last couple of years, in the levels of domestic tourism.
The UAE's political stability in the face of persistent & growing political instability in other dominant regional tourist destinations, like Tunisia, Egypt, Lebanon and Syria is resulting a significant increase in number of visitors to the UAE as the traditional visitors of those regional destinations increasingly choose the UAE as better alternative destination for their holidays. As a results of robust feedback from the native medical practitioners concerning the challenges faced in attracting and managing potential medical business customers over the previous few years, the government introduced a replacement medical business visa at the start of 2013.
