Dubai GDP to grow by 4 to 5 percent in 2012

The GDP in Dubai will grow by around 4 to 5 percent this year, fuelled by strong performance of trade and non-hydrocarbon sectors, an official in declared in Dubai last week.

The projected growth is far higher than projections by most other institutions, including the Washington-based Institute for International Finance (IIF), which expects the real GDP of the emirate to grow by about 2.5percent this year.

The Chief Economist at Dubai Economic Council, Ali Tawfiq Al Sadeq, has predicted that the real GDP in Dubai will grow by 4 to 5 percent this year, in comparison to just 3 percent in 2011. The growth this year will be supported by expansion in overall economic activities and strong performances of major sectors during first quarter of 2012.

According to Al Sadeq, the high forecasts for Dubai’s GDP is dependent on various factors, such as the strength of the trade sector in the emirate and other non-oil economies, growing business opportunities, improvement in global economies and revised projections by the IMF, and World Bank for higher regional and global growth rates.

He mentioned that five major sectors, including tourism and industry, account for 96 percent of Dubai’s GDP, the second largest following Abu Dhabi. These six sectors are expected to drive the growth of GDP this year, and the investors will find immense opportunities in the Dubai emirate this year.

Posted on 14/5/2012

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