Data released by Dubai Economy on Sunday showed that the emirate’s GDP grew 1.94 per cent last year but it will increase up to 2.1 per cent this year and 3.8 per cent next year before easing to 2.8 per cent in 2021.
Dubai’s economy will continue to rely on real estate as its main growth driver at 3.65 per cent for 2019 followed by 3.1 per cent for logistics and transport; 2.8 per cent growth in tourism; 2.4 per cent in financial services and 1.9 per cent in wholesale and retail trade.
As visitors will flock into the emirate next year for Expo 2020, the tourism sector will overtake real estate to become the leading growth driver of the economy followed by logistics and transport; wholesale and retail; real estate; financial services; industrial and construction industries.
Dubai Economy said government-led policy initiatives and investments, improved growth prospects in trading partners, and preparation to host Expo 2020 are providing the bedrock for increased private sector credit and investment in Dubai.
Safadi sees foreign direct investment flows into the emirate also accelerate in the coming years.
“Our drive and focus is to open new markets and products for exports, taking advantage of new connectivity through maritime and air. Looking at the global picture, Dubai’s economic growth will pick considering trade and economies of our major trading partners will also grow,” added Safadi.
He pointed out Dubai surmounted challenges and achieved strong growth in FDI last year despite the decline in global investments.
“Now the trend is moving positively globally and we hope that clouds of uncertainty over the global economy will dissipate and the emirate will fare even better,” he added.
Going forward, Dubai Economy said the emirate is currently engaged in developing new growth drivers and initiatives to attract private sector investments in new innovative sectors and expand to regional and global markets.