Business | Economy
Dubai's economy grows 2.3 per cent
Trade and manufacturing improved along with tourism, says the emirate's statistics centre
- Reuters
- Published: 00:00 November 25, 2010
- Image Credit: OLIVER CLARKE/Gulf News
- Dubai’s business district as viewed from the 37th Floor of the Emirates Towers showing DIFC, towers along Shaikh Zayed Road and the Burj Khalifa and Downtown Dubai.
Dubai: Dubai's economy grew 2.3 per cent in the first six months of 2010 as trade and manufacturing improved along with tourism, the Dubai Statistics Centre said, confirming earlier remarks by its chief.
The global downturn ended an oil and real estate-led boom in the United Arab Emirates last year, sending the world's No 4 oil exporter into its first downturn since 1993. Dubai's restructuring has weighed on the economic recovery in 2010.
"The sectors of manufacturing, transport, logistics, services, wholesale and retail trade, hotels, restaurants and government services achieved positive growth," Arif Obaid Al Muhairi was quoted as saying. He did not say whether the gross domestic product increase was in real or nominal terms.
Property
The property sector contributed 11 per cent to Dubai's economy in the first six months, Muhairi said, down from 14 per cent for whole of 2009, and 17 per cent in 2008.
Dubai's non-oil exports and re-exports soared by 46 per cent and 26 per cent, respectively, in the second quarter, while imports jumped 17 per cent, data has showed.
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Al Muhairi predicted last month Dubai's GDP growth at 2.3 per cent for this year, well above a 0.5 per cent forecast by the International Monetary Fund.
In February, when uncertainties around state firm Dubai World's restructuring weighed on the market, the IMF said it saw Dubai's GDP contracting 1.3 per cent in 2010.
Expansion
The economy of the emirate, which accounts for some 80 per cent of the UAE's non-oil trade, expanded 5.7 per cent in real terms in 2008.
Official 2009 GDP data for Dubai are not available, although the IMF estimates a 0.9 per cent contraction.
Concerns about Dubai's liabilities, estimated at around $115 billion, have eased after Dubai World reached a deal in September to restructure almost $25 billion (Dh91.8 billion).
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