Dubai’s economy continued to grow at a fast pace in 2017 and the growth is expected to continue in the next two years supported by rising domestic demand and a cyclical recovery in the global economy, said Sami Al Qamzi, Director General of Dubai Economy
According to official estimates, the real GDP growth in the emirate is expected to reach 3.2 per cent this year, 3.5 per cent in 2018 and 3.7 per cent in 2019 as outward-oriented strategies and policies as well as sharper focus on diversification, sustainability, and infrastructure development will further enhance economic performance.
Global trade is expected to record a 3.6 per cent growth in 2017 as against 1.3 per cent during the previous year. The policy of openness adopted by the UAE across trade and economic activity in general is bringing goods manufacturers and service providers to Dubai, enhancing and diversifying exports from the emirate and further integrating the emirate into global value chains.
Dubai’s total trade (direct and free zones) reached Dh985 billion during the first nine months, a 3.5 per cent growth over the same period of 2016. The emirate attracted 12 million tourists during the first nine months of 2017, an increase of 7.5 per cent year-on-year.
Continuing investments in Dubai’s travel, tourism, leisure and hospitality sectors are expected to raise its profile as a destination and attract more tourists, in line with the Dubai 2021 Plan to welcome 20 million visitors by 2020.
Three target sectors in the Dubai Industrial Strategy 2030 such as manufactured food exports (16 per cent), aluminium and metal exports (13 per cent) and machinery and equipment exports (11 per cent per cent) growth respectively this year.
Trade sector is expected to contribute 28 per cent of the GDP in Dubai in 2017, while the contributions of the logistics sector and Financial Services sector are expected at 16 per cent and 11 per cent, respectively.
Tourism is expected to see a growth of 5.1 per cent this year. Real Estate and Business Services sector in Dubai is expected to grow by 4.3 per cent, 3.8 per cent and 3.9 per cent in 2017, 2018 and 2019 respectively, while the Manufacturing will grow by 3 per cent 3.8 per cent and 4 per cent during the same period, according to Dubai Economy.
“Transportation sector will be a major catalyst of growth in the Construction sector too during the next two years, especially since major investment projects, including the Etihad Rail, the Dubai Metro extension and the expansion of the Jebel Ali Container Port are being implemented. Transportation will also thrive on Dubai’s growing significance as a logistics hub located between three continents and along the most important trade routes,” said Al Qamzi.
Dubai has moved to new levels of growth and prosperity, where innovation, productivity of capital and labour, ease of doing business, a diversified base of high value-added economic activities, and economic resilience to external as well as internal shocks are the focal points. “Promoting the role of innovation in the development process is the responsibility of all sectors of the society and demands a change in the culture of individuals and institutions,” said Al Qamzi.