Country Brief

Month: June Year: 2012 Manufactur Transport ing Storage,Co 8.0% m. Financial 8.0% 6.9% Gov't Services 4.4% Dom. Serv 1% Other,net 1.1% Oil & gas sector accounted for 38.4% of nominal GDP in 2011 2003
Nominal GDP by Sector 2011 Crude Oil & Gas Trade Construction Real Estate &Bus. Serv Manufacturing Transport,Storage,Com Financial Corporations Other GDP US$ bn 130.1 39.9 35.8 30.0 27.1 27.0 23.3 25.8 338.9 Share % 38.4 11.8 10.5 8.9 8.0 8.0 6.9 7.6 100.0 Real GDP % ch 2011 6.7% 2.8% 3.2% 0.7% 3.0% 4.0% 2.8% 4.2% 10yr ave 0.8% 6.4% 10.1% 3.9% 3.5% 8.7% 11.6% 4.2%

National Income - 2011

United Arab Emirates

Oil/Gas Sector Non-Oil Sector

R. Estate, Bus.Serv 8.9% Constructio n 10.6% Trade 11.8%

100% 80% 60% 40% 20% 0%

Oil/Gas 38.4%

Other Utilities Govt Serv Financial Transpt/Com Manf R.Estate Constr Trade 2003 2005 2007 2009 2011

100% 80% 60% 40% 20% 0%

The Safest Bank in the Middle East and Among the World's 50 Safest Banks Since 2009 (Global Finance)

2005

2007

2009

2011

Nominal GDP rose to US$ 339 billion in 2011 (+19.3% y-oy) driven by a rise in the average oil price to US$ 105/bl (+35% y-o-y) Oil GDP Non-Oil Real GDP 15% 10% % change y-o-y

Share of construction, transport and communication, and manufacturing sectors rose in nominal activity in 2011

15% 10% % change y-o-y 5% 0% -5% -10% -15% -20% 2006

Crude Oil Output % Change in Supply

3.0 million barrels per day

Oil/Gas Constr REstate Other

Manf Trade Financial

Utility Transpt/Com Govt

15% 10% 5% 0%

Consumption Govt Expenditures Change in Stocks

Investment Net Exports

20% 15% 10% 5% 0% -5% % % change y-o-y

5% 0% -5%

2.5

-10% -15% 2003 2005 2007 2009 2011 2013

2009

2.0 2012

Relative Contribution to Real GDP Growth - by Sector 2003 2005 2007 2009 2011

-5% -10%

Relative Contribution to Real GDP Growth - by Expenditure 2003 2005 2007 2009 2011

-10% -15% -20%

2011 real GDP growth +4.2% y-o-y (+1.3% in 2010), forecast at +2.6% in 2012 and +2.9% in 2013; growth to be driven by non-oil sector Govt Expenditures Priv. Investment Net Exports Priv. Consumption 400 350 300 250 200 150 100 50 0 2003 2005 2007 2009 2011 US$ billion

Bloomberg data indicate UAE crude oil production was By sector, oil and gas sector accounted for 49% of 2011 By expenditure, consumption expenditures recovered up +3.3% y-o-y in May 2012 output growth to contribute positively to growth in 2011 Relative Contribution to Investment Growth Public Sector Government Private Sector 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% 2007 2009 2011 20% % change y-o-y 15% 10% 10% 5% 0% -5% 2003 2005 2007 2009 2011 5% 0%

Govt. Expenditures in GDP

Govt Expenditures/GDP (constant prices) Growth in Real Govt. Expenditures 20% 15%

Loans to Residents

Non-Oil GDP 50% 40% 30% 20% 10% 0% -10%

2003

2005

1999

2001

2003

2005

2007

2009

2011

Private sector consumption expenditures accounted for 52% Investment expenditures were driven by the private sector of nominal economic activity in 2011. Share of net exports in (+17% y-o-y) according to the data GDP rose to 12.6% from 6.6% in 2010 Disclaimer : This report has been issued by the Economics Group at National Bank of Abu Dhabi (NBAD) on the basis of publicly available information & other sources considered reliable. This is not to be construed as an offer to buy, or sell securities. While utmost care has been taken to ensure that the information provided is accurate and correct, neither NBAD, nor any of its employees shall, in any way, be responsible for the contents. NBAD is licensed by UAE Central Bank. Data: Bberg, CBUAE, NBS

Credit growth remains weak reflecting modest recovery

For information: Dr. Giyas Gokkent, Economics Group, National Bank of Abu Dhabi, PO Box 4, Abu Dhabi, UAE Ph: +971 2 4105 140 E-mail: giyas.gokkent@nbad.com