Wednesday, 27 October, 2021

Dubai economy to grow 3.1pc in 2021

Dubai economy to grow 3.1pc in 2021

Popular News

DUBAI: Dubai’s economy is forecast to expand 3.1 per cent in 2021, helped by effective policy measures that minimised the impact of Covid-19, according to the latest government projections.

The hosting of the six-month Expo 2020 global trade fair, which begins in October, has also spurred economic activity this year and laid foundations for even faster growth momentum, according to data from the Department of Economic Development. The emirate’s gross domestic product is expected to expand 3.4 per cent in 2022, report agencies.

Dubai’s leadership took “decisive measures” to ease the repercussions of global challenges on the emirate’s economy and those efforts were supplemented by new legislation and amendments to the investment and residence laws in the country, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and chairman of the emirate’s Executive Council, said in a Dubai Government Media Office statement on Tuesday.

“Cumulatively, these moves revitalised the economy and stimulated a strong flow of local and foreign investment, allowing the emirate to resume its journey of development, diversification and sustainable economic growth,” Sheikh Hamdan said.

“Over the coming years, Dubai promises to be an even bigger global destination for investment and talent, and a city that offers exciting new opportunities for businesses, entrepreneurs and innovators.”

The economy of Dubai, the commercial and tourism hub of the Middle East, has bounced back strongly from a pandemic-driven slowdown that disrupted global trade flows and severely affected travel and tourism sectors last year, tipping the world economy into its worst recession since the 1930s.

Tourism and real estate sectors that are key to Dubai’s economy have made a significant recovery on the back of stimulus packages worth Dh7.1 billion ($1.93bn) since the outbreak of Covid-19 to support the economy, businesses and people.

“These packages came on top of economic support measures launched by the UAE Federal government,” Sami Al Qamzi, director general of Dubai Economy, said.

“Between September 2020 and July 2021, Dubai witnessed a relatively faster recovery in sectors such as transport and tourism compared to other countries.”

A nationwide campaign at pace to inoculate the population against the pandemic has also boosted investor confidence and put the economy “firmly on the recovery path”, Mr Al Qamzi added.

In June, Dubai reduced or cancelled fees for 88 government services to reduce financial pressures on businesses, lower the cost of living, support investors and improve the business environment in the emirate.

In June, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, launched new initiatives to support family companies, help start-ups and attract more skilled workers to the UAE. Business confidence in Dubai has risen to a seven-year peak as companies in the emirate expect conditions to improve ahead of Expo 2020, according to a survey by the Dubai Chamber of Commerce & Industry.