Dubai – Dubai’s Department of Economic Development (DED) is expecting the emirate to grow by 2.1% this year, 3.8% in 2020 and 2.8% in 2021, as per a report made public this Sunday (21). The forecast factors in initiatives, government investment, a pickup in the economies of countries that are partners in trade, and the lead-up to Expo 2020, which Dubai will host. All of those drive a pickup in credit and proven investments, Emirates News Agency (WAM) reported.
Gross Domestic Product (GDP) growth picked up this year, with business licenses peaking and optimism regarding jobs creation and business performance improving.
Q1 saw 6,709 new business licenses issued, up 29% from a year ago. The Composite Business Confidence Index for Q1 was 10.2 points, up from 7.7 in Q1 2018.
The Dubai Financial Market General Index climbed 4%. Last year, the emirate was the target of AED 38.5 billion (USD 10.48 billion) in foreign direct investment, up 41% year-on-year.
The economy had begun to pick up in 2018, with growth amounting to 1.7% in H1 and 2.2% in H2. Full-year growth was 1.9%.
To ensure economic growth in years to come, the emirate is encouraging initiatives in artificial intelligence, the internet of things and industry 4.0, in addition to a freer business environment.
Works in connection with Expo 2020 amount to an estimated AED 38 billion (USD 10.34 billion), with turnover during the actual event expected to reach AED 23 billion (USD 6.26 billion). Industries expected to benefit the most are tourism, communication, financial services, transportation, real estate and retail. Small and medium businesses could see as much as AED 5.2 billion (USD 1.41 billion).
The event’s legacy could amount to AED 62 billion (USD 16.88 billion) through 2030.
Translated by Gabriel Pomerancblum
