The United Arab Emirates' economy, the Arab world's second-largest, grew more than 7 percent for a fifth straight year in 2007 as construction, industry and trade offset slower growth in energy. Gross domestic product of the world's fifth-largest oil exporter expanded 7.6 percent last year, compared with 9.4 percent the year before, according to Ministry of Economy data obtained by Reuters on Monday. Growth has averaged 9.4 percent per year for the last five years. Manufacturing surged 15 percent in 2007, construction 17 percent, and wholesale and retail 8 percent, Monday's data showed. “The UAE is proving itself to be highly successful in turning the opportunities offered by high oil revenues into rapid non-oil growth,” said Simon Williams, regional economist at HSBC Holdings Plc in Dubai. Real estate and business, and transport and storage each advanced 8 percent, and financial services 9 percent, according to the data. “The growth is also broad-based; construction and real estate play a role, but it's industry and service sector growth that is leading the way,” Williams said. The UAE, a federation of seven family-ruled emirates led by Abu Dhabi, has been trying to diversify its economy from oil, on which it relies for about 35 percent of its gross domestic product. Oil dominates the economy of Abu Dhabi, while Dubai's relies more on trade, real estate and transport. Gulf states, including Saudi Arabia, Kuwait and Qatar, are reaping a windfall from oil prices that have surged more than five-fold during the last six years, investing the proceeds in infrastructure, industry and real estate, and spurring a boom. Growth in the UAE oil and gas industries eased to 1 percent as the OPEC, of which the UAE is a member, cut output by 1.7 million barrels per day in November 2006 and February 2007. Government services, which are partly dependent on oil revenue, rose 5.5 percent. The average price of Dubai benchmark crude was $68 a barrel last year, compared with $61 a barrel the year before, according to Giyas Gokkent, head of research at National Bank of Abu Dhabi. Dubai operates the Middle East's largest container port through its DP World DPW.DI and the largest Arab airline, Emirates. In a Reuters poll in December, 12 economists expected UAE 2007 economic growth at 7.8 percent - on average - and 7.8 percent again this year. On Sunday, the economy ministry said UAE gross domestic product expanded 7.4 percent. It did not give a breakdown at the time. A ministry official said the latest growth figure was the more accurate and could not immediately explain the discrepancy with Sunday's number. - Reuters Moreover, a record number of international investors and regional companies are participating in EFG-Hermes' 6th Annual One-on-One Conference in Sharm Al-Sheikh. The ongoing conference that will end on Thursday allows representatives from about 60 companies with a total market capitalization in excess of $345 billion to have the opportunity of meeting and discussing investment opportunities with global investors. Major corporations from across 10 countries in the region; Bahrain, Egypt, Jordan, Saudi Arabia, Kuwait, Lebanon, Oman, Qatar, Palestine and the UAE will aim to attract foreign direct investment. They are to benefit from weak economies of the US and Europe have been hurt by the sub-prime crisis and the subsequent credit crunch. __
