Accounting For Growth: Comparing Economic Sectors In The Uae

: UAE occupied an important position not only in the Arab world, but even in the worldwide economy. The country took a main oil producer and a business location hub with short duration of establishment as a country that consisted of seven emirates. Referable to the fluctuating of oil price, the country employed a strategy to diversify its economy to avoid the instability of income from oil revenue. The question was analyzed here what factor of production was the primary contributor to the growth in the concept of sectoral approach according to the UN. The purposed of this study to analyze the UAE’s economy in perspective of sectoral approach from 1990 to 2015, that divided in three sectors such the primary sector, the manufacturing sector, and the service sector. The growth accounting used as a model to explain the growth. The methodology applied was a quantitative method. The data were gathered from the country statistics center, which in term employed empirical study. The empirical study resulted that the country shifted from agriculture to service and industry since 2000. The contribution share from the labor input was the main factor that contributed significantly to the growth of each sector specifically from 1990-2015, where were deserved 70%, 86%, and 62% to the primary, the manufacturing, and the service sectors, respectively. While, the contribution growth due to the capital were 24%, 45%, and 49%, for the primary, the manufacture, and the service sectors, respectively. While in contrast, the share of growth due to the TFP was negative in the manufacturing and the service sectors which were -31% and -12%, respectively, where unlike in the primary sector was 6% from 1990-2015. But in general, the sector output was obtained of the service sector was deserved the highest annual mean growth rate about 8.37%, which accompany by the manufacturing sector about 6.88%.