UAE Sees 47% Growth in Non-Oil Exports

Sheikh Mohammed bin Rashid chairing a cabinet session on Thursday, July 7, 2022. (WAM)
Sheikh Mohammed bin Rashid chairing a cabinet session on Thursday, July 7, 2022. (WAM)
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UAE Sees 47% Growth in Non-Oil Exports

Sheikh Mohammed bin Rashid chairing a cabinet session on Thursday, July 7, 2022. (WAM)
Sheikh Mohammed bin Rashid chairing a cabinet session on Thursday, July 7, 2022. (WAM)

Dubai Ruler Sheikh Mohammed bi Rashid Al Maktoum, UAE Vice President and Prime Minister, chaired the cabinet session held at Qasr Al Watan in Abu Dhabi on Thursday.

He announced that the UAE’s non-oil exports grew by 47%, the foreign direct investment flow increased by 16%, and the number of new registered companies increased by 126% compared to the pre-pandemic period.

“Our economy is growing,” he affirmed.

He added that he witnessed the signing of performance agreements for a number of ministers.

The agreements stipulate the completion of 36 transformational short cycles projects within six months to a maximum of 12 months.

They aim at enabling ministries to respond to all changes quickly and with greater flexibility.

The meeting reviewed the outcomes of the COVID-19 recovery plan (2020-2021), which included the development and implementation of 33 initiatives in partnership with federal and local entities.

The initiatives had a 100% success rate in empowering the economy, developing sectors and opening new markets.

The outcomes of the report showed that the real gross domestic product (GDP) was 3.8% in 2021, exceeding the estimates of international institutions by 1.7%, whereas the non-oil GDP reached 5.3% in the same year.

Separately, the cabinet approved housing loans for citizens worth AED2.4 billion ($653 million) for the next six months with 500 beneficiaries.

It also approved the rules of the sabbatical leave for citizens working in the government who wish to run their own business.

The leave is for a full year with half a salary while preserving the job.

The government aims to encourage the youth to take advantage of the huge economic opportunities offered by the UAE’s national economy.

In addition, the cabinet approved the UAE framework for culture and creative industries statistics, which will serve as a national database.

The framework enhances the position of the UAE in the competitiveness reports and provides comprehensive and accurate data at the federal level, enabling the monitoring of the cultural and creative industries sector.

It will also provide accurate data for talents, entrepreneurs, investors, and academic institutions in the sector.

Data shows that cultural and creative industries contributed 3.5% to the GDP amounting AED54.4 billion ($14.8 billion) and five percent of the non-oil GDP.

The number of establishments operating in the sector jumped to 36,000.



Facing Market Pain, UK’s Reeves Says ‘Pragmatic’ China Ties Will Help Growth

British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)
British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)
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Facing Market Pain, UK’s Reeves Says ‘Pragmatic’ China Ties Will Help Growth

British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)
British Chancellor of the Exchequer Rachel Reeves looks on during the 11th China - UK Economy and Finance Dialogue in Beijing, China, 11 January 2025. (EPA)

British finance minister Rachel Reeves, facing criticism for travelling to China during financial market turmoil at home, said on Saturday that "pragmatic and predictable" relations with Beijing would help boost economic growth and trade.

Under pressure from a sharp rise in British interest rates, Reeves defended her budget at the start of the two-day visit to China, where she is seeking to revive high-level economic and financial talks that have been frozen for nearly six years.

"The fiscal rules that I set out in my budget in October are non-negotiable, and growth is the number one mission of this government to make our country better off," Reeves told reporters at a Brompton bicycle shop in Beijing.

"That's why I'm in China to unlock tangible benefits for British businesses exporting and trading around the world to ensure that we have greater access to the second-largest economy in the world."

The rise in British government borrowing costs, due in part to a global bond selloff, prompted comparisons with the 2022 "mini-budget" crisis that forced then-Prime Minister Liz Truss out of Downing Street.

However, this week's market moves have been less sharp and there has so far been no evidence of the strain on institutional investors that forced the Bank of England into emergency bond purchases in 2022.

On trade, asked whether Britain would follow Washington and Brussels in imposing tariffs on Chinese electric vehicles, Reeves, who will be in Shanghai on Sunday, said: "We keep issues under review but we make decisions in our national interest."

British car manufacturers, "like Jaguar Land Rover, export substantially to Chinese markets, and we want to help them to grow."

After her bicycle shop visit, Reeves met Vice President Han Zheng, telling him it was "important to have open and frank dialogue in areas where we agree, but also in areas where we have different views."

'COMMON GROUND'

Her delegation, which includes Bank of England Governor Andrew Bailey, Standard Chartered Chairman Jose Vinals, and HSBC Chairman Mark Tucker, then met Chinese counterparts led by Vice Premier He Lifeng.

He urged British financial firms to expand renminbi services and promote deeper yuan internationalization, while inviting them to participate in green finance and the pension industry in China.

Reeves said she looked forward to China issuing its first overseas sovereign green bond in London this year.

Her visit follows a dialogue opened last year between Prime Minister Keir Starmer and President Xi Jinping, the first between the two countries' leaders since 2018.

Reeves told He that Russia's invasion of Ukraine, rising geopolitical tensions and climate change meant that they faced a much more challenging environment than when their predecessors last met.

"It is important to prevent economic leaps weakening our national security and economic resilience," she said, adding both she and He wanted to "find common ground" in this regard.

He said Beijing will work with London to ensure a fair, non-discriminatory business environment for each country's firms.

The approach adopted by Starmer's Labor government, elected in July, contrasts with that of the previous Conservative administration, which took a robust path to differences with China - particularly over human rights, Hong Kong and allegations of Chinese espionage.

Starmer has long described his desire to build a relationship with China that is "rooted in the UK's national interests" by boosting trade, a task that may become more difficult if US President-elect Donald Trump follows through on his threat to impose tariffs on all imports.

China is Britain's fourth-largest trading partner, accounting for goods and services trade worth almost 113 billion pounds ($138 billion).