Faster Growth of Dubai’s Economy in 2019 and 2020
Dubai economy will improve faster in 2019 and 2020 . It is mainly due to strong growth in main sectors with GDP (gross domestic product) figures being over Dh400 billion.
Dubai’s primary economic growth declined to 1.9 percent in 2018. However, it will increase this year to 3 percent and will rise to 3.7 percent in 2020. Construction and real estate, business services, hotels and restaurants and transport, and logistics sectors greatly contribute to this growth.
Central Bank of the UAE’s forecast shows the expansion of the UAE economy will be 2 percent in 2019. The growth of the UAE GDP was 2.2 percent in the first-quarter of 2019. This figure is estimated to expand at the same rate in the second-quarter of 2019. However, it will slow down in two remained quarters of 2019 to 2 percent and 1.6 percent, respectively.
Dubai Statistics Centre (DSC) put forward that Dubai’s economy grew 1.94 percent in 2018 to Dh398.13 billion. This was owing to an upsurge in business and infrastructure investments. The GDP is estimated to reach Dh410 billion in 2019, and 3 percent growth and Dh425 billion in 2020.
Monica Malik(an economist) also believes economic activity will rise in 2019 and 2020. The figures will be much higher than 2018 GDP growth level. Malik believes the Expo 2020 will increase tourism inflows and related spending such as hospitality services.
Moreover, the director at International Monetary Fund recently said that spending relating Expo 2020 would support economic growth in the future.
Anish Mehta, a vice-chairman of the ICA , said that the diversity in Dubai income sources will increase Dubai economic growth. This is because Dubai’s income is no longer based on oil and real estate. It now relies on other fields such as tourism and trade.
Mehta also said Expo 2020 will increase investment in infrastructure and technology. This step is influential for economic, social and cultural progress. UAE authorities have set their minds on conscious measures in to attract more tourists.
The managing director of credit rating agency believes Dubai will grow briefly through the rest of 2019. However, we will witness further growth in the year 2020.
According to the above, the economic growth of Dubai will be prominent in the not-too-distant future due to some reasons. One of these reasons is that Dubai does not rely on oil to earn money like in the past.
Secondly, Expo 2020 will attract more tourists to this beautiful city. Thirdly, the government of the UAE has set its mind on some steps to increase Dubai’s economic growth to a desirable level.
*most of the information above is based on Khaleej Times Website.