Dubai projected to grow 3-5%

Tuesday May 17 2011

Dubai`s economy is projected to rebound by three to five per cent in real terms this year on the back of stronger performance in the tourism, trade and other sectors, reported Emirates Business 24|7.

Abdul Rahman Al Ghurair, chairman of the Dubai Chamber of Commerce and Industry, also said a sharp downturn in the emirate`s property sector following the 2008 global fiscal distress depressed inflation and spurred a capital inflow.

`With the positive growth rate recorded in 2010 and the excellent investment climate in Dubai, as well as the positive forecasts of investors, the emirate is expected to record real GDP growth of 3-5 per cent this year,` Ghurair told the Arabic language daily Alkhaleej.

He said several factors supported this year`s projected growth, far above the 2.5 per cent expansion recorded last year, including better performance in the trade, tourism and financials sectors.

`The services sector is another key sector and one of the most important stimulants in Dubai`s economy…this sector has also been performing well, recording an annual growth of 16 per cent during 1997-2007….other sectors that are also leading growth are tourism and financial services, which have proven to be solid and flexible over the past period…these sectors have the potential that will allow them to maintain growth in the next period.`

Ghurair said the investment climate in Dubai would further be strengthened by the inauguration of the new Al-Maktoum airport, the opening of more hotels, the completion of infrastructure projects and the strength of the banking system.

`As for the decline in the real estate sector, this has positively impacted business in the emirate as it has led to the entry of new commercial and housing units into the market and consequently more people and companies,` he said.