A study by the Dubai based Emirates Industrial Bank said that the UAE's industrial sector expanded by nearly 11 per cent in 2011 to maintain its position as second largest component of GDP after the hydrocarbon sector.

According to the study, the high growth was a result of an increase in public and private investment in manufacturing projects and the completion of the first stage of the Abu Dhabi based Emirates Aluminum project.

From AED 127.6 billion in 2010, the manufacturing sector's contribution to the UAE's overall GDP swelled to an all time high of AED 141.7 billion in 2011.

EIB said in its January 2012 economic bulletin that "Growth in this sector and other non hydrocarbon sectors in the UAE last year was a result of an increase in domestic liquidity due to a surge in the country's oil export earnings."

It said other non oil sectors recorded high growth last year, including transport, which expanded by 6% and the financial sector, with banks recording 11% growth in their profits.

It added that "Trade was also a key growth sector with figures announced by the Ministry of Foreign Trade showing the country's commercial exchange rising to new record high levels given the UAE’s position as a key trade hub."

EIB gave no GDP growth figures for this year but cited IMF data as showing the economy has almost completely recovered from the 2008 global fiscal distress and gained pace in 2011 over the previous year. It showed the UAE's GDP in current prices soared to an all time high of around AED 1.3 trillion to retain its status as the largest Arab economy after Saudi Arabia.

(Sourced from www.emirates247.com)