Dubai crown prince Sheikh Hamdan says diversification policies of the emirate are also paying off,
Dubai's economy forecast to grow 3.7% in 2019 as infrastructure development continues
Dubai’s economic growth is forecast to accelerate in 2019 and reach 3.7 per cent as infrastructure development and diversification policies continue apace, said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai said.
Real GDP, which grew 2.85 per cent last year, is projected to grow 3.2 per cent in 2017 and 3.5 per cent in 2018 respectively, the crown prince said in statement issued by Dubai Economy, the emirate’s economic development body on Wednesday.
Dubai’s economy, the second biggest in the UAE, is set to expand, thanks to rising domestic demand and recovery in the global economy, Sami Al Qamzi, director general of Dubai Economy said. .
Dubai’s economy is much more diversified and is insulated from oil price fluctuations that have dented the pace of economic growth in the wider Arabian Gulf region. The emirate, which is preparing to host the Expo 2020, has also ramped up infrastructure investments to build the facilities for the global trade event and also approved its biggest-ever budget for 2018 this week .
Dubai Economy's growth forecasts are in line with those from the IMF, which estimates its GDP to expand 3.3 per cent in 2017 and 3.5 per cent 2018.
“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 Economy said in the statement.
Dubai’s total trade, including trade in free zones, grew 3.5 per cent year-on-year in the first nine months of this year to Dh985 billion.
The trade sector is forecast to account for 28 per cent of GDP in 2017, followed by logistics sector with 16 per cent and financial services with 11 per cent. The tourism sector is projected to grow 5.1 per cent this year and continue apace in the next two years.
The real estate and business services sector is forecast to expand at 4.3 per cent, 3.8 per cent and 3.9 per cent in 2017, 2018 and 2019 respectively, while the manufacturing sector will grow 3 per cent, 3.8 per cent and 4 per cent during the same period on the back of new plans to boost the industrial sector .
The emirate, last year, unveiled Dubai Industrial Strategy 2030 that will target adding Dh160bn to its GDP and creating 27,000 specialised jobs by developing six industrial sectors: aerospace; maritime; pharmaceuticals; medical equipment; aluminium and fabricated metals; food and beverages; and machinery and equipment.