Fiscal and monetary stimulus measures helped Dubai recover from the effects of the global economic crisis in 2009, with the emirate's economy expanding 2.8 per cent in 2010 and 3.4 per cent last year, a report from the Dubai Economic Council said today. Dubai's economy however contracted 2.4 per cent in 2009.
In the report, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, attributed Dubai's ability to keep pace with the rapid regional and international economic developments to the flexibility, diversity and dynamism of its economy.
Dubai Economy 2012 presents a panoramic view of the emirate's economic performance in 2011 and compare it with the period between 2006 and 2010. it said.
"The property and construction sectors were two industries that were affected as a result of the crisis and continued to lag other sectors until early 2010. Meanwhile, other economic sectors quickly rebounded largely to the expansionary fiscal policy adopted by the government; the support provided to the financially distressed government-related enterprises particularly the restructuring of their debt and the UAE Central Bank's injection of liquidity into the banking sector. Trading activities, both foreign and domestic, on the other hand remained Dubai's economic backbone and its major source of income," the report said.
Dubai has established itself as a favourite tourist destination for 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 immensely contributed 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," the report noted.
* The National staff