Senior officials within the Dubai government are reaffirming the emirates growth estimates with renewed forecasts outstripping projections made prior to the downturn in 2008.
The government says nominal growth domestic product will hit AED490 billion (US$133 billion) by 2015, up from AED367 billion in 2011, with Dubai averaging real growth of 4.5 – 5% a year through 2015.
In 2007, Sheikh Mohammed bin Rashid Al Maktoum targeted a GDP of US$108 billion for 2015.
“Dubai’s economy is well diversified and resilient to external as well as domestic shocks,” said Sami al-Qamzi, director general of Dubai’s department of economic development. “We think that growth will be more sustainable, albeit at a more moderate pace than in previous years.”
Given the Dubai property market is so closely tied to the overall economy, a further recovery in the real estate sector would allow Dubai to return to its pre-2008 strategy of raising cash through land sales.
The economy minister, Sultan al-Mansoori, says the UAE is also introducing laws to boost investor confidence and better provide for its nationals. The country is also working finalise a companies’ law, which will open up some sectors to 100% foreign ownership.
There appears to more bullish tone from the Dubai government with the traditional revenue streams from trade, tourism and transportation have now been followed by the signs of recovery in real estate and construction.
Confidence has grown since the Arab Spring restored Dubai’s status as a regional haven, prompting a tourism revival with arrivals up another 10% in the first half of 2012.
While the recovery remains relatively slow, it is also returning at a stronger and more stable pace, allowing companies to built their operations for the medium to long term wit a renewed confidence.
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