More than two-thirds of the United Arab Emirates' (UAE) gross domestic product (GDP) will be generated by non-hydrocarbon sectors by 2010, it has been predicted.
According to National Commercial Bank of Saudi Arabia, the growth of sectors including construction, real estate and financial services will generate 70 per cent of the country's wealth within two years, thus diversifying its economy and reducing its dependence on oil.
Meanwhile, continued high prices for oil will underpin the economy's healthy outlook, the bank's Investment Strategy: Capitalising on the Petrodollar Windfall study said.
The report said: "Economic prospects in the UAE look bright, with the pace of growth likely to remain strong supported by sustained high energy prices, a strong investment momentum and an improved domestic business climate."
The moves to reduce the country's dependence on oil have made the most diversified economy among all the Gulf States surveyed by the bank.
Saudi Arabia and Qatar are set to generate 49 per cent and 45 per cent of their wealth from other sectors by 2010, the report added.
