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Dubai's economy is expected to grow faster this year than the levels reached in 2018, despite the global economic slowdown, as the emirate continues to implement policy initiatives and investment measures under its charter 50 years old.
Gross domestic product is expected to grow by 2.1 percent in 2019, then 3.8 percent in 2020 and 2.8 percent the following year, according to the Dubai Economic Department, a government agency that defines and implements the economic agenda. .
The emirate saw its GDP grow by 1.9% in 2018, as a result of investments in infrastructure and trade, which accounted for 18.1% of the emirate's total growth of 398.13 billion of dirhams, according to the Dubai Media Center, quoted by Dubai. Statistics Center statistics earlier this year.
"The Dubai government is working to develop new growth drivers to fully prepare for future changes in the global and regional economic landscape, including in the areas of artificial intelligence, the Internet of Things and the fourth industrial revolution, "said the DED.
"Initiatives are underway to attract private sector investment into new innovative sectors and expand to regional and global markets. As such, the projected growth rates reported above represent a low scenario for future growth. "
The economic momentum had already accelerated earlier this year with the ramp-up of new business licenses, which increased by 29% to 6,709 in the first three months of 2019. L & # 39; Composite Index of Business Confidence (BCI) climbed 10.2 points in the first DED noted that the previous quarter and the 7.7 points of the last quarter of 2018 marked a marked improvement in business prospects and general climate. The quarterly BCI survey is conducted by the ministry.
The emirate, which has one of the most diverse economies in the Arabian Gulf region, depends mainly on the non-oil sector for its economic growth. The real estate sector, which has seen a slowdown in excess supply in recent years and a three-year drop in oil prices that began in mid-2014, is expected to recover as activity economic recovery is gaining momentum.
Dubai has also put in place important policy initiatives aimed at reducing the costs of doing business, increasing the liquidity of SMEs, and supporting the tourism and real estate sectors, which have resulted in a 41% increase in year-on-year change in foreign direct investment in 2018 to Dh38.5 billion
In January, the emirate approved its budget for 2019, with higher revenue targets, setting spending at 56.8 billion dirhams, a slight increase over the previous year. The government has kept the size of this year's budget equivalent to its record 2018 budget.
The emirate is preparing to host the Expo 2020 and also invests a lot in infrastructure in anticipation of the world fair. This year's budget includes an allocation of 9.2 billion dirhams for infrastructure projects.
According to an EY study, the contribution of Expo 2020 to the emirate's GDP over the 2013-2030 period was estimated at 122 billion dirhams. Between 2013 and April 2021, the construction and delivery of the Expo site is expected to bring a contribution of 38 billion dirhams, with direct benefits for the construction, business services and financial services sectors. transport, storage and communication.
The event itself is expected to add another 23 billion dirhams to the emirate's GDP, he added.
Updated: April 21, 2019 5:23 pm
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