Special Features
Dubai Economy Rebounds
A recent economic report shows that Dubai’s economy has recorded steady growth over the past two years with an increase in the GDP growth rate from 2.8% in 2010 to 3.4% in 2011 versus a contraction of 2.4% in 2009. This rebound in economic growth was largely due to fiscal and monetary stimulus packages undertaken by the UAE federal authorities as well as the Government of Dubai. Moreover, the resilience of Dubai’s major trade partners, especially India and China, has also contributed to this positive development as shown in a report issued by the Dubai Economic Council (DEC), entitled "Dubai Economy 2012".In a foreword to the report, H. H. Sheikh Hamdan Bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council attributes Dubai’s ability to keep pace with the rapid regional and international economic developments to the flexibility, diversity and dynamism of its economy.
H.H. Sheikh Hamdan refers to the figures included in the report, as indicators of Dubai’s success in overcoming the repercussions of the global crisis, tracing a new phase of development which affirms its position as a global business and financial hub.
Expressing his satisfaction over results achieved by Dubai’s various economic sectors, H.H. Sheikh Hamdan said that the maturity of Dubai’s economy promoted a wide range of business opportunities, calling for closer cooperation between both the private and public sectors to tap into these opportunities, building on Dubai’s remarkable achievements over the past four decades.
He also acknowledged the report’s value as a reference which helps researchers, economists and provides investors with a guide to assist them plan their future investment projects.
The Crown Prince of Dubai also stated that the knowledge economy would continue to be an area of focus that fosters creativity and innovation in Dubai, especially in economic sectors with high added value.
"Dubai Economy 2012" presents a panoramic view of the economy of the Emirate of Dubai comparing its performance in the year 2011 against that of the period between 2006 and 2010. It shows that despite the slowdown in 2009 following the global crisis, Dubai’s economy has continued to steadily grow over the last 2 years (GDP growth of 3.4%in 2011 from 2.8% in 2010 and a contraction by 2.4% in 2009).
The impressive rebound in economic growth was largely due to the fiscal and monetary stimulus packages undertaken by the UAE federal authorities and the Government of Dubai. Moreover, the resilience of some of Dubai’s major trade partners, especially India and China, has also contributed to this positive development.
The real estate and construction sectors were two industries that were affected as a result of the crisis. However, by early 2010 (with the exception of these two sectors) most of Dubai’s other sectors quickly rebounded. This is attributed largely to the expansionary fiscal policy adopted by the government, the support provided to the financially distressed government related enterprises (GREs); most notably the restructuring of their debt, and the UAE Central Bank’s injection of liquidity into the banking sector.
Trading activities, both foreign and domestic, continued to be the backbone of the economy and its major source of income. Regionally and globally, Dubai has established itself as a favorite destination for tourists due to its unique attractions and busy events calendar in addition to state of the art entertainment facilities, fine accommodation, amenities, and accessibility. Indicators show a steady increase in tourism activities and continued investment flows.
Despite its narrow manufacturing base, the industrial sector has contributed immensely to Dubai’s economy. In 2010, the industrial sector’s recovery was led by strong exports, while trade and logistics constituted the core competency of Dubai’s economy.
Real estate has experienced a dramatic transformation. In 2010, the real state sector exhibited encouraging signs of recovery, especially in "New Dubai" areas such as: Dubai Marina, Jumeirah and free hold zones.
