United Arab Emirates - Oil rents (% of GDP)

Oil rents (% of GDP) in United Arab Emirates was 16.20 as of 2019. Its highest value over the past 44 years was 60.01 in 1979, while its lowest value was 10.82 in 2016.

Definition: Oil rents are the difference between the value of crude oil production at world prices and total costs of production.

Source: Estimates based on sources and methods described in "The Changing Wealth of Nations: Measuring Sustainable Development in the New Millennium" (World Bank, 2011).

See also:

Year Value
1975 41.63
1976 40.72
1977 34.98
1978 34.07
1979 60.01
1980 46.49
1981 31.33
1982 22.40
1983 22.92
1984 22.97
1985 23.77
1986 15.87
1987 23.72
1988 20.02
1989 29.19
1990 36.24
1991 24.41
1992 23.11
1993 20.27
1994 17.60
1995 17.50
1996 19.92
1997 17.05
1998 11.23
1999 14.17
2000 21.12
2001 16.23
2002 14.67
2003 17.10
2004 20.10
2005 24.86
2006 25.06
2007 22.88
2008 27.35
2009 18.02
2010 21.72
2011 28.82
2012 28.53
2013 25.78
2014 23.05
2015 13.12
2016 10.82
2017 13.04
2018 16.59
2019 16.20

Development Relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future.

Limitations and Exceptions: This definition of economic rent differs from that used in the System of National Accounts, where rents are a form of property income, consisting of payments to landowners by a tenant for the use of the land or payments to the owners of subsoil assets by institutional units permitting them to extract subsoil deposits.

Statistical Concept and Methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the world price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs (including a normal return on capital). These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Environment Indicators

Sub-Topic: Natural resources contribution to GDP