The UAE economy achieved outstanding results in 2011, reflecting steady oil prices, strengthened oil production and spillover effects of the Arab Spring. In fact, it is not easy to disagree with a recent report by Standard Chartered Bank estimating real, adjusted for inflation, economic growth of 3.8 per cent for the UAE in 2011 in the light of the three cited causes.
The notable performance partly reflects the near absence of inflationary threats. Happily, inflation remains non-threatening to the UAE economy by virtue of standing at around 1.6 per cent in 2011 and projected to edge up slightly to 2 per cent in 2012.
To be sure, oil prices continued to hover around $100 (Dh367) per barrel throughout 2011, if only because of doubts surrounding oil supplies from Libya. Still, this very case allowed Opec countries enjoying sustained oil production capacity above their quota levels to make up for lost supply. Both Saudi Arabia and the UAE were at the forefront of oil-producing countries compensating the market for the disruption of Libyan oil.
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