Dubai: Dubai’s economy has recovered from the slowdown of 2009 and the global financial crisis as its core sectors are driving its growth, a latest report by Dubai Economic Council said.

“This rebound in economic growth was largely due to fiscal and monetary stimulus packages undertaken by the UAE federal authorities as well as the Government of Dubai,” the report says.

“Moreover, the resilience of Dubai’s major trade partners, especially India and China, has also contributed to this positive development as shown in a report issued by the Dubai Economic Council (DEC), entitled Dubai Economy 2012.”

Dubai’s economy has recorded a growth of 2.8 per cent in 2010 and 3.4 per cent in 2011, recovering from a 2.4 per cent decline in 2009, the report says.

Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, attributed Dubai’s ability to keep pace with the rapid regional and international economic developments to the flexibility, diversity and dynamism of its economy, in a foreword to the report.

Shaikh Hamdan refers to the figures included in the report, as indicators of Dubai’s success in overcoming the repercussions of the global crisis, tracing a new phase of development which affirms its position as a global business and financial hub.

Expressing his satisfaction over results achieved by Dubai’s various economic sectors, Shaikh Hamdan said that the maturity of Dubai’s economy promoted a wide range of business opportunities, calling for closer cooperation between both the private and public sectors to tap into these opportunities, building on Dubai’s remarkable achievements over the past four decades.

The real estate and construction sectors were two industries that were affected as a result of the crisis, the report says. “However, by early 2010 (with the exception of these two sectors) most of Dubai’s other sectors quickly rebounded. This is attributed largely to the expansionary fiscal policy adopted by the government, the support provided to the financially distressed government related enterprises (GREs); most notably the restructuring of their debt, and the UAE Central Bank’s injection of liquidity into the banking sector,” it says.

Trading activities, both foreign and domestic, continued to be the backbone of the economy and its major source of income. Regionally and globally, Dubai has established itself as a favourite destination for tourists due to its unique attractions and busy events calendar in addition to state of-the-art entertainment facilities, fine accommodation, amenities, and accessibility. Indicators show a steady increase in tourism activities and continued investment flows.

Despite its narrow manufacturing base, the industrial sector has contributed immensely to Dubai’s economy. In 2010, the industrial sector’s recovery was led by strong exports, while trade and logistics constituted the core competency of Dubai’s economy.

“Real estate has experienced a dramatic transformation,” it said.