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Dubai’s GDP to grow 3.2% to US$105.95 bn in 2017

Dubai’s read gross domestic product (GDP) at constant price is expected to record 3.2 per cent in 2017 US$105.95 billion (Dh388.85 billion) in 2017, up from US$102.67 billion (Dh376.8 billion) in 2016, according to a latest report by Dubai Economy – the trade licensing and economic regulatory body of the Government of Dubai.

Dubai’s real GDP, is projected to grow 3.5 per cent in 2018 and 3.7 per cent in 2019, the crown prince said in statement issued by Dubai Economy, the emirate’s economic development body.

Dubai’s economy, the second biggest in the UAE, is set to expand, thanks to rising domestic demand and recovery in the global economy, Sami Al Qamzi, Director-General of Dubai Economy said in a statement.

Dubai Government is investing more than Dh15 billion in infrastructure – to expand the road network to ease the movement of people and goods across the emirate.

“The report shows that the prospects for the growth of Dubai's economy in 2017 is promising. The emirate’s economy is expected to achieve a real growth of 3.2 per cent or higher due to the continued recovery of the global economy in 2017 and improved growth rates in developed, emerging and developing economies,” the report says.

“Strategic initiatives adopted by the government of Dubai during the past years to cover Islamic economy and innovation as well as the Smart City programme and hosting Expo 2020 in addition to the mega projects announced by the government aimed at diversification and sustainability, including major road and transport infrastructure projects estimated at Dh15 billion, will take Dubai past various milestones and other major economies regionally and globally.”

Growth in 2016 was supported by growth in key economic sectors, such as manufacturing, transport and storage, real estate, finance and insurance, wholesale and retail trade and tourism, it said.

“The report showed that the economy of Dubai in 2016 continued to perform well at the macro level with real GDP growing at 2.9 per cent. Dubai was able to achieve growth rates that exceeded that of developed economies despite the decline in oil prices,” the report said.

According to the MasterCard Global Destination Cities Index, Dubai has maintained its position as the world's 4th largest tourism destination (after Bangkok, London and Paris) in 2016. The 2016 mobile subscription index of the World Bank ranked Dubai the first in the world, with 235.2 telephone lines per 100 inhabitants, and  23.1 Internet lines per 100 inhabitants, which is higher than the GCC average.

The Government of Dubai is adopting policies to help increase the contribution of the industrial sector to the same or higher than in emerging and developed countries. The Dubai Industrial Strategy 2030 launched by the Government of Dubai in 2016, seeks to restructure the local economy in line with developments in the global economy, especially with regard to access to sectors with high value-add and competitiveness.