Sharjah public sector GDP share rises

The government sector in Sharjah has grown its share of the emirate’s gross domestic product (GDP) from Dh60.4 billion in 2006 to Dh68.4bn in 2007, making 13.2 per cent growth. The government sector is currently accounting for 17.87 per cent of the overall GDP of the emirate. As the government services sector has a major share in GDP, it is capable of acting as a corrective force for the economic growth and will show a proven quality performance in government services, gaining the necessary power to guide the economic sector to the desired direction, said Ali bin Salem Al Mahmoud, Sharjah Economic Development Department General Manager. The GDP growth rate of the emirate from 2004 to 2007 was 41.7 per cent according to local statistical data. It grew to Dh68.4bn in 2007 from Dh30.4bn in 2004. The overall GDP of the emirate amounted to Dh68.4bn in 2007, a 13.2 per cent growth as compared to figures of 2006, according to federal statistical data. The share of commodities products sector (agriculture, manufacturing industry, construction, electricity, gas and water) to GDP has grown from Dh13.6bn in 2004 to Dh24.7bn, Dh27.7bn and Dh29.6bn in 2005, 2006 and 2007, respectively. The average annual growth rate of commodities products sector during the period from 2004 to 2007 was calculated at 39.3 per cent. The manufacturing industry sector has the lion’s share to commodities products sector’s GDP, posting Dh12.2bn in 2007, a 41.2 per cent from the GDP of the sector at Dh29.6bn. The manufacturing industry has the highest added value in the Gross Capital Formation, accounting for 19.99 per cent in 2007. The emirate has solved the problem of declining share of manufacturing industry to the GCF, with a growth of 79.3 per cent from Dh2015m to Dh3613m in 2007. This means the manufacturing industry sector has the highest share to gross capital formation in value and rate of contribution, a growth that proves an appropriate direction of the emirate’s policies in supporting the sector from one side and interest shown by investors and private sector from the other side. business24-7.ae