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Oil price drop not affect UAE economic growth

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Staff writer ▼ | January 7, 2016
The United Arab Emirates Minister of Economy and Foreign Trade Sultan bin Saeed Al-Mansouri said Tuesday the UAE's economy has not been affected by falling oil prices, WAM reported.
Saeed Al-Mansouri
UAE   Minister Sultan bin Saeed Al-Mansouri:
"The UAE economy is strong and based on policy set by the government, where dependence on oil decreases year after year," Al-Mansouri said in a statement issued on the sidelines of the third session of the meeting of the Federal National Council (the UAE parliament).

He noted that the country is going ahead with its projects of infrastructure unlikely to be affected by the ongoing decline in oil prices.

Oil contributes 29 percent to the UAE's domestic economic output. Due to the 60 percent drop in oil prices between mid-2015 and end of 2016, the International Monetary Fund (IMF) expected a 2.3 percent fiscal deficit for the UAE in 2015, the first since 2009.

However, Al-Mansouri stressed that the UAE will continue its strategy of economic diversification and will work to strengthen other sectors, especially industry and services, in order to offset any future declines in oil prices.

The IMF expected a UAE economy growth of 3.0 percent in 2015 and 3.1 percent in 2016.