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ECONOMIC ACTIVITY IN DUBAI TO BOOST AHEAD OF EXPO 2020 – IMF

Dubai economy is expected to enter a period of growth and rapid acceleration ahead of Expo 2020 with an estimated GDP growth of 3.3 percent. According to International Monetary Fund (IMF) mission chief to the UAE, Zeine Zeidane improving oil prices and Emirate’s political stability are considered as the key factors behind the increase in Dubai’s economic activity. Zeidane, expects Dubai GDP to expand at 3.3 per cent in 2016 in contrast to Dubai government which is determine to achieve higher GDP growth rate of 4 per cent by taking strong economic initiatives.

According to Zeidane, Dubai being a diversified economy is overcoming the negative impact of lower oil prices felt by other regional exporters. He further adds that Dubai’s safe haven tag; a weaker dollar and trading partners like India are also supporting the growth of Dubai economy. Furthermore, he added that UAE economy is set to expand by 2.3 per cent in 2016.

Dubai Government Initiatives

With diversification as a major strategy for the Dubai government to boost economic growth, Dubai is concentrating to strengthen on major sectors such as InnovationTourism & HospitalityEducationHealthcare and Retail.

For 2016, Dubai government allocated AED 16.9 billion ($4.6 billion) of government expenditure towards education, health, housing and infrastructure development. Dubai also aims to become the most innovative (SMART) city in the world. Last month, Dubai government launched a DRIVERLESS car to rationalise the fuel consumption, encourage the use of SMART vehicle in future and switch 25 per cent of all transportation to DRIVERLESS car by 2030.

EXPO 2020 

Dubai’s bid to host EXPO 2020 coupled with a steady economic growth and diversifying its business opportunities has positioned itself as an attractive destination for foreign direct investments (FDIs). In 2014, Dubai attracted FDI worth $7.79 billion primarily in the infrastructure and the services industries.

Dubai Hotel & Hospitality Industry

Dubai EXPO 2020 expects to welcome more than 25 million visitors between October 2020 and April 2021 and has already initiated work to add 35,000 hotel rooms to its existing 65,000 hotel rooms. In addition, 96 new hotel projects are also under construction and expected to be ready by 2020.

Dubai Tourism Industry

Dubai is all set to become world’s third most popular tourist destination by 2017-18 replacing Paris which is currently ranked third behind Bangkok (2nd) and London (1st). At present, Dubai is ranked fourth in terms of most popular tourist destination globally receiving approximately 14.5 Million visitors by the end of 2015.

Dubai Mega Projects

Many mega projects like the Dubai South (site of World EXPO 2020); extension of Dubai Metro, Dubai Canal Project and Mall of the World (the biggest mall in the world) projects are expected to complete before the opening of Dubai EXPO 2020. It can be inferred that EXPO 2020 related construction projects will aid in accomplishing the Dubai’s vision in providing a world class lifestyle to its residents through successful completion of improved retail, transport and infrastructure projects.

Ease of doing business in Dubai

Dubai ranked 22nd in the World Bank’s Influential Doing Business 2015 Index three places up from 2014 as a result of continued economic development and implementation of new rules and regulations that improved business environment. The city promises more transparency and better communication within the public and private sectors and is considered as one of the best places to live and work.

PwC named Dubai as the Global ‘City of Opportunity’ as it ranked (5th) for global affordability, cost of living and purchasing power. The Economist Intelligence Unit ranked Dubai the (3rd) most improved cities to live over the past five years, as it has shown improvement in terms of offering better quality of life and advancement opportunities.

Why invest in Dubai?

Dubai’s strategic location connecting east with the west coupled with a strong leadership, innovative and long-term strategy with a positive and diversified economy makes Dubai the ideal place for investment. The rise in Dubai population (2.49 Million in 2016 – expected 3.5 Million by 2020) and growth in tourism (4th popular global tourist destination) has made it all the more obvious for Dubai to take the center stage of foreign investments.


Research Konnection –  Connect with us on info@researchkonnection.com if you are looking for market research or business setup in Dubai (UAE).

Dubai economy is expected to enter a period of growth and rapid acceleration ahead of Expo 2020 with an estimated GDP growth of 3.3 percent. According to International Monetary Fund (IMF) mission chief to the UAE, Zeine Zeidane improving oil prices and Emirate’s political stability are considered as the key factors behind the increase in Dubai’s economic activity. Zeidane, expects Dubai GDP to expand at 3.3 per cent in 2016 in contrast to Dubai government which is determine to achieve higher GDP growth rate of 4 per cent by taking strong economic initiatives.

According to Zeidane, Dubai being a diversified economy is overcoming the negative impact of lower oil prices felt by other regional exporters. He further adds that Dubai’s safe haven tag; a weaker dollar and trading partners like India are also supporting the growth of Dubai economy. Furthermore, he added that UAE economy is set to expand by 2.3 per cent in 2016.

Dubai Government Initiatives

With diversification as a major strategy for the Dubai government to boost economic growth, Dubai is concentrating to strengthen on major sectors such as InnovationTourism & HospitalityEducationHealthcare and Retail.

For 2016, Dubai government allocated AED 16.9 billion ($4.6 billion) of government expenditure towards education, health, housing and infrastructure development. Dubai also aims to become the most innovative (SMART) city in the world. Last month, Dubai government launched a DRIVERLESS car to rationalise the fuel consumption, encourage the use of SMART vehicle in future and switch 25 per cent of all transportation to DRIVERLESS car by 2030.

EXPO 2020 

Dubai’s bid to host EXPO 2020 coupled with a steady economic growth and diversifying its business opportunities has positioned itself as an attractive destination for foreign direct investments (FDIs). In 2014, Dubai attracted FDI worth $7.79 billion primarily in the infrastructure and the services industries.

Dubai Hotel & Hospitality Industry

Dubai EXPO 2020 expects to welcome more than 25 million visitors between October 2020 and April 2021 and has already initiated work to add 35,000 hotel rooms to its existing 65,000 hotel rooms. In addition, 96 new hotel projects are also under construction and expected to be ready by 2020.

Dubai Tourism Industry

Dubai is all set to become world’s third most popular tourist destination by 2017-18 replacing Paris which is currently ranked third behind Bangkok (2nd) and London (1st). At present, Dubai is ranked fourth in terms of most popular tourist destination globally receiving approximately 14.5 Million visitors by the end of 2015.

Dubai Mega Projects

Many mega projects like the Dubai South (site of World EXPO 2020); extension of Dubai Metro, Dubai Canal Project and Mall of the World (the biggest mall in the world) projects are expected to complete before the opening of Dubai EXPO 2020. It can be inferred that EXPO 2020 related construction projects will aid in accomplishing the Dubai’s vision in providing a world class lifestyle to its residents through successful completion of improved retail, transport and infrastructure projects.

Ease of doing business in Dubai

Dubai ranked 22nd in the World Bank’s Influential Doing Business 2015 Index three places up from 2014 as a result of continued economic development and implementation of new rules and regulations that improved business environment. The city promises more transparency and better communication within the public and private sectors and is considered as one of the best places to live and work.

PwC named Dubai as the Global ‘City of Opportunity’ as it ranked (5th) for global affordability, cost of living and purchasing power. The Economist Intelligence Unit ranked Dubai the (3rd) most improved cities to live over the past five years, as it has shown improvement in terms of offering better quality of life and advancement opportunities.

Why invest in Dubai?

Dubai’s strategic location connecting east with the west coupled with a strong leadership, innovative and long-term strategy with a positive and diversified economy makes Dubai the ideal place for investment. The rise in Dubai population (2.49 Million in 2016 – expected 3.5 Million by 2020) and growth in tourism (4th popular global tourist destination) has made it all the more obvious for Dubai to take the center stage of foreign investments.


Research Konnection –  Connect with us on info@researchkonnection.com if you are looking for market research or business setup in Dubai (UAE).

Author: RKonnect
The author is the Managing Director of Research Konnection, a Dubai based market research and consulting firm that helps local and international companies to identify emerging business opportunities and successfully expand in the Gulf region. The author can be reached at waqas@researchkonnection.com
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