- April 24, 2019
- Posted by: Waqas Siddiqui
- Category: Analysis, Business & Economy, Business Reports
Dubai GDP to grow by 2.1% in 2019 – DED
Dubai economy is expected to grow by 2.1 per cent 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 per cent 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 economy. According to the survey, 59 per cent of the companies were optimistic about the growth in Q1 2019, compared to 41 per cent for the same period in 2018. Additionally, the Financial Market General Index gained 4 per cent in first quarter of the 2019 as net foreign investment in the market reached to AED 680 million (USD 185 Mn) with investments from institutional investors accounting to AED 492 million (USD 134 Mn).
On similar lines, Dubai government took many initiatives to reduce the cost of doing business, boosting SME liquidity and support 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 per cent from the previous year. Likewise, the decision to allow foreign investors 100 per cent ownership will further enhance investor confidence and potentially increase total FDI inflows to UAE by 15-20 per cent 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 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 GDP (gross domestic product) to perform better in 2020 and grow by 3.8 per cent in 2020 and 2.8 per cent in 2021.
Investment Opportunities in Dubai and UAE
UAE has always has been an investment friendly destination offering attractive investment environment to international companieas 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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