Rapid growth in oil production also fuels gross domestic product
Abu Dhabi: The UAE’s gross domestic product (GDP) grew by 4.4 per cent in the last quarter of 2018, driven by real growth in the non-oil sector, as well as the rapid growth in oil production, according to the latest estimates issued by the UAE Central Bank.
The central bank’s quarterly review showed a slowdown in oil price growth during the fourth quarter of 2018, with an increase of 9.8 per cent compared to 44.4 per cent in the third quarter of 2018. On a quarterly basis, prices fell by 10.2 per cent compared to an increase of 1.0 per cent in the third quarter.
On a yearly basis, oil production rose in the fourth quarter by 13.1 per cent compared to a 1.0 per cent growth in the third quarter, averaging 3.3 million barrels per day. On quarterly basis, oil production rose by 9.5 per cent in the fourth quarter compared to an increase of 4.3 per cent in the third quarter.
The rise came ahead of the implementation of Opec’s agreement with some independent producers in December, which aimed to adjust the growing imbalance between the global oil supply and demand in 2019, by reducing the total production by 1.2 million barrels per day, as of January 2019 for an initial period of six months.
As a result, oil production in 2018 rose by 1.1 per cent, averaging 3 million barrels per day, compared with a decline of 3.9 per cent in 2017.
In addition to this increase in oil production, the UAE continues to develop a long-term economic vision for the Emirate which moves away from a dependence on oil with many initiatives already being launched in 2018 and many more expected in 2019.
Source: Gulf News