Gulf non-oil 'posts strong annual growth'

24/12/2008 - Dubai Investment News
Gulf non-oil 'posts strong annual growth'

Growth in sectors aside from oil continued apace across the gulf over the course of the year, new figures suggest.

Research conducted by the Institute of International Finance (IIF) has suggested that non-oil growth outperformed the oil sector, despite record oil prices, Emirates Business 24/7 states.

"Real non-hydrocarbon growth is continuing to outpace hydrocarbon growth in the Gulf Co-operation Council countries except Qatar," the report said.

Indeed, it is private consumption and continued growth in the investment market that have boosted the sector. Aside from this, there is also continued demand for buying in Dubai and across the UAE.

Annual growth levels over the past five years have averaged around 7.5 per cent, and even though the global credit crunch has been affecting economies of late, growth in the gulf non-oil sector is expected to average 6.4 per cent for the whole of the year, the report indicated.

Earlier this month, the IIF predicted that the gulf countries are well placed to weather the downturn, thanks in part to the ample resources of the region.