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UAE Freezones Biz News Updates
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Flexibility, diversity open new horizons for Dubai economy
Flexibility and diversity has opened new horizons for Dubai’s economy as the
emirate witnessed steady growth in GDP over the past two years. The Dubai’s
forward looking policies helped the emirate to achieve 3.4 per cent GDP
growth in 2011 and 3.8 per cent in 2010, despite a 2.4 per cent contraction
in its economy in 2009, according to an economic report issued on Wednesday.
The rebound in economic growth was largely due to fiscal and monetary
stimulus packages undertaken by the UAE federal authorities as well as the
Government of Dubai. Moreover, the resilience of Dubai’s major trade
partners, especially India and China, has also contributed to this positive
development as shown in the report issued by the Dubai Economic Council
(DEC), entitled “Dubai Economy 2012”.
Shaikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and
Chairman of the Executive Council, attributes Dubai’s ability to keep pace
with the rapid regional and international economic developments to the
flexibility, diversity and dynamism of its economy in a foreword to the
report.
Shaikh Hamdan refers to the figures included in the report, as indicators of
Dubai’s success in overcoming the repercussions of the global crisis,
tracing a new phase of development which affirms its position as a global
business and financial hub.
Expressing his satisfaction over results achieved by Dubai’s various
economic sectors, Shaikh Hamdan said that the maturity of Dubai’s economy
promoted a wide range of business opportunities, calling for closer
cooperation between both the private and public sectors to tap into these
opportunities, building on Dubai’s remarkable achievements over the past
four decades. He also acknowledged the report’s value as a reference, which
helps researchers, economists and provides investors with a guide to assist
them plan their future investment projects.
The Crown Prince of Dubai also stated that the knowledge economy would
continue to be an area of focus that fosters creativity and innovation in
Dubai, especially in economic sectors with high added value.
Balanced macro economy
“Dubai Economy 2012” presents a panoramic view of the economy of the Emirate
of Dubai comparing its performance in the year 2011 against that of the
period between 2006 and 2010. It shows that despite the slowdown in 2009
following the global crisis, Dubai’s economy has continued to steadily grow
over the last two years (GDP growth of 3.4 per cent in 2011 from 2.8 per
cent in 2010 and a contraction by 2.4 per cent in 2009).
The real estate and construction sectors were two industries that were
affected as a result of the crisis. However, by early 2010 most of Dubai’s
other sectors quickly rebounded. This is attributed largely to the
expansionary fiscal policy adopted by the government, the support provided
to the financially distressed government related enterprises (GREs); most
notably the restructuring of their debt, and the UAE Central Bank’s
injection of liquidity into the banking sector.
Trading activities, both foreign and domestic, continued to be the backbone
of the economy and its major source of income. Regionally and globally,
Dubai has established itself as a favourite destination for tourists due to
its unique attractions and busy events calendar in addition to state of the
art entertainment facilities, fine accommodation, amenities, and
accessibility. Indicators show a steady increase in tourism activities and
continued investment flows.
Despite its narrow manufacturing base, the industrial sector has contributed
immensely to Dubai’s economy. In 2010, the industrial sector’s recovery was
led by strong exports, while trade and logistics constituted the core
competency of Dubai’s economy.
Real estate has experienced a dramatic transformation. In 2010, the real
state sector exhibited encouraging signs of recovery, especially in “New
Dubai” areas such as: Dubai Marina, Jumeirah and free hold zones.
With the Dubai Government adopting forward looking policies, promoting free
trade and open skies, free zones have played a key role in realising Dubai’s
economic objectives through attracting foreign direct investments. Trade and
business relations among free zone established regional and global companies
indirectly boost local economy through stimulating growth of commodities and
services trade.
27 Dec 2012 |
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Courtesy Dubib.com News Desk
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