Dubai: Dubai's economy represents more than 30 per cent of the UAE economy, with retailing and manufacturing comprising the largest shares, Ehsan Khoman, a researcher at the Dubai Chamber of Commerce and Industry, said at a conference yesterday.
"Regionally, while Abu Dhabi contributed nearly 55 per cent of GDP in 2007 (with Dubai contributing just over 30 per cent), the overwhelming share of FDI investment has been in the Emirate of Dubai," he said.
He noted that in terms of growth performance, while Dubai performed better than Abu Dhabi in 2007, the downturn in Dubai's real estate and construction sectors is expected to lead to a weakening of Dubai's output this year compared to that of Abu Dhabi.
The collapse in worldwide demand, Khoman said, will mean that Dubai's exports and re-exports may suffer this year.
"The expansion in the services sector, notably in the tourism industry, will slow down as the influx of tourists falls on the back of weaker private consumption growth," he said.
However, Dubai's growth is expected to remain strong from a global perspective
The determination of the Dubai authorities to use strong fiscal expansion in order to ensure that the economy bounces back, especially in the construction sector, will mean that the economy will maintain strong growth going forward.
International agencies acknowledge that Dubai will suffer from the backlash of the global economic slowdown, but any fall in output may be limited.
Meanwhile, the UAE economy is expected to rebound from next month with a gradual recovery that could stretch till next year, Hamad Bu Amim, Director-General of the Dubai Chamber of Commerce and Industry, said yesterday.
