(MENAFN- Khaleej Times) The UAE economy is estimated to have grown by around four per cent in 2012, at a pace higher than the rate forecast by the International Monetary Fund, or IMF.
The UAE Minister for Economy Sultan bin Saeed Al Mansouri on Thursday also predicted that the same of pace of growth would be sustained in 2013.
"I think this year will be the same as there are no major changes in oil prices or the general situation of the world economy," he said at a media briefing.
At the estimated rate of growth, the size of the UAE economy, driven by fast-growing oil and non-oil sectors, would have surpassed the predicted Dh1.4 trillion mark in 2012.
The IMF, impressed by Dubai's remarkable resilience in 2012, has observed that the UAE as a whole is responding comfortably to improved non-oil and oil sector growth.
The IMF said the real gross domestic product, or GDP, of the UAE was on track to grow by 3.4 per cent in 2012, accelerating by 3.7 per cent in 2013 and sustaining a growth of 3.4 per cent in 2014.
Analysts argue that the UAE's growth would continue to be fuelled by increased government spending as prices of crude are expected to hold steady at slightly above $108 per barrel in 2013.
Abu Dhabi plans to spend $90 billion development projects over the next five years to 2017, while Dubai has revealed plans to build a new city housing the world's largest shopping mall and 100 hotels.
The minister said that inflation in the UAE should remain at 1.0-1.5 per cent this year. It eased to 0.7 per cent in 2012, the lowest level since 1990, when Iraq's invasion of Kuwait hit regional economies, from 0.9 per cent in 2010 and 2011.
Al Mansouri also said that the ministry has completed the discussion on a long-awaited foreign investment law, which will allow the Cabinet to approve up to 100 per cent foreign ownership in firms outside of free zones on a case-by-case basis.
The draft still needs to be debated in the Federal National Council, the government's advisory panel, and the cabinet itself, he added.
Al Mansouri said his ministry was successful in enhancing international economic policy through various strategic activities that contributed to improved cooperation with several countries and exchange of ideas and knowledge in areas of mutual interest such as small and medium enterprises.
Al Mansouri said the ministry was mandated to issue and modernise laws and regulations to improve the business environment, industries and national imports according to best practices. He added that the Ministry worked on offering high-quality services, encouraging the inflow of investments, protecting consumers, and enhancing economy diversification, led by national cadres.
Mohammed Ahmed bin Abdul Aziz Al Shehhi, Director General of the Ministry, said the development of SMEs was among the Ministry's priorities. He pointing out the Ministry had put in all efforts to enhance the position of the country as a global investment hub.
He said the ministry was keen to enhance consumer protection and intellectual property practices, encourage auditing and commercial registration, and tackle commercial fraud.
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