An interesting review of Dubai’s recent economic performance has just been published by the Oxford Business Group.
Key headline conclusions are as follows:
Full-year growth of 3.7%, up from 3.5% in 2015 and well above the projected average for the UAE of 2.4%.
Expo 2020 infrastructure spend, together with ongoing expansion of the retail and tourism sectors, will support new growth in the coming year and beyond.
Although performing well, declining exchange rates (against the US dollar) reduced the flow of inward investment from countries such as India, the eurozone, the UK, Turkey and Egypt.
Despite a challenging operating environment, Dubai’s real estate sector held up well with only a marginal reduction in sales and earnings.
For the future, retail remains a bright spot with growth of 7.7% in 2016 predicted to increase to a compound annual growth rate (CAGR) of 8.1% between 2017 and 2020.
The construction sector is also expected to grow by 4% this year with a strong pipeline of private and Dubai government-backed projects in the run up to Expo 2020.
The economic objective remains to maintain Dubai’s position as a key regional player in areas such as trade, logistics, tourism, retail, entrepreneurship and technology.
The opening of several new theme parks has provided a strong boost to the tourism sector, with Dubai emerging as a regional leader in this area.
All of the above, of course, is good news for Arpal Gulf.
The full report can be found here.