- April 24, 2019
- Posted by: Waqas Siddiqui
- Category: Business & Economy
Dubai GDP to grow by 2.1% in 2019 – DED
The Dubai GDP is expected to grow by 2.1 percent in 2019 according to the latest report released by the Department of Economic Development (DED). The report indicated a shift in economic momentum with 6,709 new business licenses issued in the first quarter, a 29 percent increase over the same period in 2018. Financial services, trade and tourism (retail & wholesale) sectors have seen improvements with all three projected to grow by 3.2%, 6.2% and 4.5% by 2020.
According to BCI (Business Confidence Index) quarterly survey conducted by DED indicates growing confidence in Dubai’s economy. According to the survey, 59 percent of the companies were optimistic about the growth in Q1 2019, compared to 41 percent for the same period in 2018. Additionally, the Financial Market General Index gained 4 percent in first quarter of 2019 as net foreign investment in the market reached AED 680 million (USD 185 Mn) with investments from institutional investors accounting for AED 492 million (USD 134 Mn).
Along similar lines, the Dubai government took many initiatives to reduce the cost of doing business, boosting SME liquidity and supporting various sectors of the economy. As a result, FDI (foreign direct investment) in Dubai reached to AED 38.5 billion in 2018, an increase of 41 percent from the previous year. Likewise, the decision to allow foreign investors 100 percent ownership will further enhance investor confidence and potentially increase total FDI inflows to UAE by 15-20 percent annually.
Overall, the market sentiments have improved on the backdrop of government-led policy initiatives, investments and Expo 2020 event preparation, which is in full swing. According to a study conducted by EY, the Expo 2020 event is projected to add Dh 122.6 billion (US 33.4 Bn) to the UAE economy between 2013 and 2031. This includes AED 22.7 billion (USD 6.18 Bn) during the event and AED 62.2 billion (USD 17 Bn) through 2030. As a result, DED expects Dubai’s GDP (gross domestic product) to perform better in 2020 and grow by 3.8 percent in 2020 and 2.8 percent in 2021.
Investment Opportunities in Dubai and UAE
UAE has always been an investment-friendly destination offering an attractive investment environment to international companies that are looking to tap into the Gulf region. The country has also developed world-class infrastructure in the form top quality airports, hotels, public facilities and economic zones, which furthers its evolution as an international business destination. A robust existing framework in conjunction with new rules to facilitate the business environment can ensure GDP growth in 2019 as indicated by the UAE Central Bank.
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