- September 8, 2019
- Posted by: Waqas Siddiqui
- Category: Business & Economy
Dubai GDP to grow by 2.4% in 2019 – S&P Global Ratings
Dubai economy is projected to grow by 2.4 per cent in 2019 on account of increased economic activity associated with EXPO 2020, according to S&P Global Ratings. Even though, the economy grew a shade under 2 per cent in 2018 amid lower oil prices and slowdown in property prices, Dubai economy is likely to expand at an average of 2.5 per cent annually between 2019-2022.
Completion of EXPO 2020 related infrastructure projects would further propel the economy in particular, boosting tourism and related spending in the next 18 months. To ensure economic growth, Dubai is strategically expanding its infrastructure as it prepares for the EXPO 2020 event. Recently, Dubai’s Roads and Transport Authority (RTA) opened a Dh 1.3 billion network of roads leading to EXPO 2020 area.
Likewise, in an earlier study conducted by EY, the Expo 2020 event is projected to add AED 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) throughout 2030. As a result, Dubai GDP is expected to perform better in 2020 growing by 3.8 per cent while 2.8 per cent in 2021 respectively.
Moreover, the new economic stimulus programme which aims to promote small and midsized enterprises (SMEs) through public-private partnerships along with new laws allowing investors to have full ownership of companies within Mainland Dubai is likely to improve business environment and encourage private sector investments in the Emirate.
UAE – An Attractive Investment Destination
UAE has always has been an investment friendly destination offering 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 will drive economic growth in the country.
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