Dubai’s real Gross Domestic Product (GDP) is projected to grow 2.1 percent this year, 3.2 percent in 2020 and 3.0 percent in 2021, said the emirate’s Department of Economy on Tuesday. The upcoming Dubai Expo 2020 is also expected to play a major role in promoting growth.
In an official statement, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum – the Crown Prince of Dubai and Chairman of The Executive Council of Dubai – said that the emirate has emerged as an attractive destination for global investment and hence, helped it transform into a major economy.
“The comprehensive development vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has made Dubai an attractive environment for investment and enabled the city to make major economic and developmental strides. This has strengthened Dubai’s global indicators, including in education, health, women’s empowerment, and competitiveness” said Sheikh Hamdan.
Dubai’s sector and total growth outlook between 2019-2021 highlights new growth strategies for the future including areas related to “artificial intelligence, the Internet of Things, and the Fourth Industrial Revolution.” It also focuses on creating an enabling environment for attracting the private sector to invest in new innovative sectors and expand to regional and global markets.
The short to medium-term outlook for Dubai anticipates challenges and articulates a set of balanced, integrated, and flexible policy initiatives that will accelerate development and ensure sustainability and prosperity in the Emirate. The outlook is in line with the 50-year Charter announced by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai in January 2019. The Charter reaffirmed “Dubai’s fundamental policy principles as a free and open market economy and a preferred destination for foreign and domestic investments.”
Foreign direct investment (FDI) into Dubai accelerated to AED 38.5 billion in 2018, an increase of 41 percent from 2017, following the introduction of major policy initiatives which contributed to bolstering domestic demand, reducing the cost of doing business, boosting SME liquidity, and supporting the tourism and real estate sectors.
“These and other initiatives contributed to accelerating growth in the second half of 2018 to 2.2%, up from 1.7% in the first half of 2018, resulting in overall real GDP growth in 2018 of 1.9%,” said Sami Al Qamzi, Director General of Dubai Economy.
“Importantly, GDP growth in 2018 was also supported by growth in productivity, which increased by 2% in 2018 over its 2017 level (Figure 1). This was driven by the quest for business efficiency gains and supported by ongoing efforts to transition into a knowledge-based economy,” he added.
Business Live ME