According to the Dubai government, the GDP growth for 2020 might be 3.2% higher than the current 2.1%. At the same time, the price may drop in 2021 with only 3%. According to one of the officials, EXPO 2020 and its legacy could be the main factor that forces the Emirate’s economic growth. It is true that Dubai faces some headwinds during the second half of 2018, still, it remained to be stable. And according to Dubai’s Department of Economic Development (DED), the GDP growth has reached 2.1 percent this year and will reach 3.2 percent the coming year.
According to the Crown Prince of Dubai and Chairman of Executive Council of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the comprehensive development vision of Prime Minister and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum has made Dubai an attractive environment to invest. Also, it enabled the city to make certain major developmental strides.
Sheikh Hamdan noted that the key role played by the EXPO 2020 projects, government initiatives and investments, promotes growth and productivity as well as investor confidence in the Dubai economy.
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Talking of Economic growth in the UAE, it is likely to reach 2 percent this year. GDP growth in UAE was recorded at 1.7 % in 2018. It is expected to go in an upward trajectory with an increase in oil output. Also, the production and export capacity is speculated to be about 3.1 million barrels per day in 2019.
Sultan bin Saeed Al Mansoori, UAE Minister of Economy said that “Global economic activity has been weak in 2019, as a result of numerous updates that have affected the entire economic landscape. Nevertheless, the UAE economic model has been able to limit the impact of these global economic variables on the national economy”.
Currently, the oil sector makes up around 30 percent of the total UAE’s GDP and the non-oil sector makes up to 70 percent of GDP. Of the 70 percent non-oil GDP, the wholesale, vehicle repair and retail makes up 11.6 percent, while the construction, manufacturing and transport and storage sectors take up 8.5 percent.
As per the Nada Al Hashimy, director of economic research at the Ministry of Economy, “the global repercussions of the trade war between US and China continue to have a trickle-down effect on GCC economies”.
Sami Al Qamzi, Director General of Dubai Economy said “Major policy initiatives were introduced and contributed to bolstering domestic demand, reducing the cost of doing business, boosting SME liquidity, and supporting the tourism and real estate sectors. Inflows of foreign direct investment (FDI) into Dubai also accelerated and reached Dh38.5 billion in 2018, an increase of 41 percent over its 2017 level. These contributed to accelerating growth in the second half of 2018 to 2.2 percent, up from 1.7 percent in the first half of 2018, resulting in overall real GDP growth in 2018 of 1.9 percent”.
Talking of the trade volumes, the UAE and China trade volumes were increased in 2017 at 12.8 percent of the total UAE’s trade volumes. However, it has also seen some declined to 10.3 percent back in 2018. As for the country’s trade volumes with the US, it saw a high of 8.2 percent in 2016 and dropped to 6.5 percent in 2018.
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