KT edit: Dubai figures good for growth

The economy had slowed to 1.9 per cent last year but is now expected to expand at 3 per cent this year.

Published: Tue 25 Jun 2019, 8:00 PM

Last updated: Tue 25 Jun 2019, 10:34 PM

Numbers, as boring as they may be, bring in relief and a sense of optimism. It's true especially when we are taking stock of economic performance and prospects of countries and cities. Take Dubai for instance. The mood is subdued in summer and businesses are playing safe but are confident about the future. There has been a small increase in student numbers in private schools. Interest in property is not as high as before but an objective analysis of the current situation suggests Dubai is faring well and will continue to perform better economically in the coming months and years. The emirate is expected to grow faster than expected on the back of expansion in vital sectors such as construction and real estate, business services, hospitality, transport and logistics.
The economy had slowed to 1.9 per cent last year but is now expected to expand at 3 per cent this year, and 3.7 per cent in 2020. It had started gaining momentum at the start of the year with a significant surge in issuances of new business licences and rising confidence in the economy. The UAE, on the whole, could grow at 2 per cent in 2019. The numbers inspire confidence when compared with countries facing a slowdown.
From a purely geological point of view, the future of most of the economies in the region is closely linked with the energy business. The price of oil, in particular, is a main influencer for governments' decision-making. But a slew of measures have allowed Dubai to diversify its economic model. Non-oil sector fuels the economic engines here, and it's all coming together for the city now. The fact that Warren Buffet, arguably the world's most successful investor, recently launched his real estate brokerage business in Dubai - a first in the region - says much about the attractiveness of the city. It has reinforced confidence in the real estate and construction market.
Besides, the government has always been on the money when it comes to policies that drive growth. Visa rules have been relaxed this year, costs for opening and operating businesses have been made more competitive, and ample opportunities have opened up as Dubai prepares to host Expo 2020. Investment strategies in the 50-year Charter are also expected to power the diversification model. Numbers don't lie, and at the moment they are looking good.