Dubai records significant growth in all key sectors

Dubai records significant growth in all key sectors Staff Report (abdulbasit@khaleejtimes.com) / 30 June 2013 Dubai posted significant growth in all key economic sectors in 2012 and the emirate will continue to maintain its position as a regional and global hub for business and finance, according to a latest report from the Dubai Economic Council, or DEC.  The report revealed that Dubai’s real economic growth during the last quarter of 2012 increased to 5.3 per cent compared to same quarter in the previous year. This reflects the outcome of the growth in two of Dubai’s key sectors — construction and manufacturing —  in addition to transport and storage, wholesale and retail trade, real estate and the financial sector, which altogether contributed to about 90 per cent of Dubai’s gross domestic product. The report stated that there was a decline in the consumer price index, known as inflation, during the fourth quarter of last year by 0.14 per cent compared to the growth in domestic liquidity that amounted to two per cent. The government’s budget deficit fell to less than $2 billion in 2012 as a result of public spending rationalisation. The real estate sector has witnessed significant growth by about 94 per cent compared to the corresponding quarter in 2011. The average price per square metre for apartments has increased to around three per cent compared to the corresponding 2011 quarter. Last year witnessed an unprecedented growth in the tourism sector, which saw tourism indicators increase notable gains. The number of guests in hotel establishments increased by seven per cent compared to the summer of 2011. Tourism activities have contributed in attracting hundreds of thousands of visitors from outside of Dubai and the state. According to the report, it also coincided with the preparation of tourist facilities and hotels and apartments buildings which aim to increase tourist numbers, the number of buildings have increased by 200 and hotel rooms by 80,000. The number of tourists has exceeded 10 million for the first time in the emirate. The average length of stay in Dubai hotels has increased by 3.77 nights, and the result of the high occupancy rate saw an 83 per cent increase compared to 79 per cent in the corresponding quarter of 2011. Dubai’s foreign trade during the last quarter of 2012 also witnessed remarkable growth, as imports totalled Dh186 billion compared to Dh117 billion of exports. Total trade at the end of 2012 was about Dh1.234 trillion compared to Dh1.1 trillion at the end of 2011. Free zones continued to play a major role in the emirate’s trade, with total exports and imports of these areas during the fourth quarter of about Dh95 billion, equivalent to 32 per cent of Dubai’s total trade. As for the banking sector and financial markets, the industry has continued to increase deposits and loans in the banks of Dubai. The merger of Emirates Islamic Bank and Dubai Bank has increased the ability to attract deposits. These trends would continue in light of the high level of demand for investment and the return of economic and commercial activity in the emirate. Money markets were up significantly in local indicators. At the sector level, the real estate and construction sectors lead the engine of growth in the Dubai Financial Market, with the financial services and investment sectors following.   Taylor Scott International