Dubai’s Economic Council said the emirate’s GDP will grow by 4 to 5% this year, a much higher estimate than that projected by other institutions. The council hoped that strong performance of trade and other non-hydrocarbon sectors would fuel growth more than previously forecasted.
“Our projections show Dubai’s real GDP will grow by 4-5% this year compared with around 3% in 2011. Growth this year will be supported by expansion in overall economic activities and strong performance of key sectors…this was shown in the first quarter of 2012,” Ali Tawfiq Al Sadeq, Chief economist at the Economic Council, said.
Al Sadeq said factors like the strength of the trade sector and other non-oil based income, expanding business opportunities, openness and transparency of business, improvement in global economies, and revised projections by the IMF and World Bank for high regional and global growth rates contributed to the revised growth forecast.
He disclosed that 96% of Dubai’s GDP consists of sectors like trade, tourism, industry, and services. “Six sectors are expected to drive GDP growth this year and I believe that investors will find great opportunities in the emirate in 2012,” the top economist added.
The Washington-based Institute for International Finance recently estimated that Dubai’s real GDP will grow 2.5% in 2012.