ABSTRACT
Figure 5.1 displays UAE real oil and non-oil sectors GDPs for the 1975-2010 period. The figure
provides evidence of a slow increase in the growth rate of the UAE’s oil GDP, subsequent
to the removal of the 1973 oil embargo. This is followed by a declining trend that is clearly
evident during the mid-1980s in response to a collapse in oil prices. The rates after the
1990 Gulf War illustrate a constant growth. The trend of non-oil GDP, on the other hand,
demonstrates a gradual rise in growth rates until approximately 1990, followed by a steady
increase afterwards, which appears to reflect the success of the UAE’s diversification strategy
of promoting non-hydrocarbon sectors. A similar post-1990 increase is noticed (Figure 5.1) in
the manufacturing sector trend, albeit at a very slow pace.
