Abu Dhabi's economy declines by 18% due to falling oil prices

By Hamdan Al Muhairi in Dubai
For Al-Shorfa.com
2010-08-13

[Dan Kitwood/Getty Images] The GDP of Abu Dhabi fell by almost 20 % in 2009.

The Abu Dhabi economy reported an 18% decline in 2009 due to falling oil prices, according to a report from the Statistics Centre- Abu Dhabi (SCAD) on Wednesday (August 11th).

The report showed that the gross domestic product (GDP) fell to $148.6 billion dollars in 2009, compared with $181.3 billion in 2008.

According to the centre, the share of the oil and gas sector in the UAE economy dropped to 49% in 2009 compared with 61% in 2008. The latest drop represents the lowest percentage of revenues from oil in UAE history.

Abu Dhabi adopted an economic plan that seeks to diversify income sources and reduce dependence upon oil sector revenues to 36% by 2030.

Bank profits increase in Lebanon

The Central Bank of Lebanon said in a report published Tuesday (August 10th) that commercial banks succeeded in increasing their profits by 44%, amounting to $816 million through the end of June. The profits earned during the same period in 2009 amounted to $568 million.

The report also recorded a rise in the rate of capital accounts of commercial bank assets to 7.36% at the end of last June, compared with 7.09% in the month of May, and 7.25% in June of 2009.

Consumer price index rises in Egypt

The Central Agency for Public Mobilisation and Statistics of Egypt said Tuesday (August 10th) that the consumer price index in the cities reached 151.2 points, compared with 136.6 points for the same period in 2009.

The average consumer price inflation in the cities held at 10.7% from July 2009 to July 2010, but prices rose sharply on a monthly basis. Observers pointed out that the increase in the inflation rate indicates that the Central Bank will keep interest rates at their current levels in 2010.

Othman Mohamed Othman, state minister for economic development, predicted that the increase in economic growth would reach 6.5% during the fiscal year 2010-2011.

Real estate market in Bahrain still in recession

Mohammed Jawad, chairman of the Mohammed Jawad Group, said Wednesday (August 11th) in Manama that the real estate market in Bahrain began its decline at the end of 2008 and said the recession will last until the end of 2011.

Jawad said no one in real estate was spared from the current crisis as rents and real estate prices continue to decline down to 30%. He added that these prices would not remain stable for long and would begin to rise gradually by the end of 2010.

He said that during the summer season investment companies turn to construction and building, so that real estate buildings will be shown after the annual slow down in buying and renting properties.

Gulf debt markets report significant recovery

A report published by Al Ahly Capital Bank on Monday (August 9th) revealed that the debt markets in the Gulf reported a significant recovery during the second quarter of 2010. The bank noted that the value of the conventional bond markets rose significantly by 33% while the number of issuances more than doubled.

The number of sovereign issues, bonds issued by a government or a government-backed agency, reached a total value of $3.4 billion, which is a significant increase compared with the same period in 2009.

The report said government bond offerings played a key role in stimulating the market. There were eight offerings during the second quarter, including seven sovereign bond issues in Bahrain and Qatar.

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