Economy likely to grow 3% amid global headwinds

Dubai: The economy of Dubai will achieve steady growth of 3 per cent this year despite political, economic and financial challenges in the region and worldwide, Hamad Bu Amim, Director-General of the Dubai Chamber of Commerce and Industry, said yesterday.

"Despite the weakness in the US economy and the worsening Eurozone debt crisis threatening global growth and political upheavals in the Mena [Middle East and North Africa] region, Dubai's economy has shown its resilience to adversity and has fared well in trade, tourism, logistics and financial services and is expected to grow 3 per cent this year," he said.

Bu Amim said Dubai's direct trade grew 24 per cent during the first half of the year, and Dubai Chamber members' direct exports and re-exports from January to November rose 16.4 per cent to Dh225 billion compared with Dh193.4 billion in the same period last year.

Regional instability

He added that Dubai has benefited from the instability in the region due to its status as a safe haven for investments, and pointed out that more than 9,000 new companies became members of the Dubai Chamber this year, clearly showing that Dubai is still a favourable business destination.

Bu Amim's comments came at the opening of the third Dubai-Hamburg Business Forum, organised by the Dubai Chamber in partnership with the Hamburg Chamber of Commerce. It comes as a high-level delegation from northern Germany is visiting the UAE.

"The idea now is to attract more German companies to Dubai, which is one of the objectives of this strategic forum," he added.

Dr Hans-Jorg Schmidt-Trenz, CEO of the Hamburg Chamber, said: "Dubai and Hamburg have a lot in common. Both cities are internationally renowned trading hubs. Dubai's strategic location at the crossroads between East and West has turned it into a leading hub."

Abdul Rahman Saif Al Ghurair, Chairman of the Dubai Chamber, added that Dubai and Hamburg share economic importance in their respective regions.

Michael Eggenschwiler, CEO of Hamburg Airport, said that the upgrading of the second daily service by Emirates to Hamburg in February is expected to boost business links as the average annual growth since 2006 on the Hamburg-Dubai route is a strong 15.6 per cent.

He expects Emirates to fly 255,000 passengers on the Dubai-Hamburg sector by the end of this year and 350,000 by the end of 2012. He said that Dubai and Hamburg airports have excellent tourist potential as well as a flourishing business culture.