Dubai: Dubai's annual economic growth is expected to record a minor slump in the next eight years by two percentage points although the per capita income is expected to jump 41 per cent to $44,000, according to the government's economic planning.
During 2000-2005 period, the emirate's real gross domestic product (GDP) grew at a combined annual growth rate (CAGR) 13.4 per cent.
"Based on the exceptional economic performance of the past years and on expected future global trends, the economic objectives for Dubai for the year 2015 are to sustain real economic growth at a rate of 11 per cent per annum, to a GDP of $108 billion in 2015, and to increase real GDP per capita to $44,000," His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and and Ruler of Dubai, yesterday told corporate Dubai as he announced Dubai Strategic Plan - 2015 (DSP) that is expected to take the emirate to the next level of growth and development.
New plan
"We need a new economic plan because the 2010 plan was already exceeded," he said. A goal of achieving GDP of $30 billion by 2010 was surpassed in 2005, when Dubai's GDP was $37 billion," Shaikh Mohammad said.
The plan also included an increase of GDP per capita to $23,000 by the year 2010. In 2005 the average GDP per capita reached $31,000. In other words, in five years we exceeded the economic targets that were originally planned for a 10-year period.
Diversification
"We will focus on economic sectors that we have strong competitive advantage in and that are expected to experience future growth globally."
The emirate's economy grew by 16 per cent in 2005 and 2006, according to the Department of Economic Development, fuelled by the services sector, especially tourism.
The Dubai economy has also been growing faster than the emerging econ-omies of China and India and the developed econ-omies of Ireland, Singapore and the US.
The services sector has been the key driver of economic growth with an annual growth rate of 21 per cent since 2000, constituting $27.6 billion or 74 per cent of Dubai's GDP in 2005, making it a very competitive economy.
Shaikh Mohammad laid strong emphasis on the economic diversification and reduced dependence on the oil sector, which declined to three per cent of the emirate's GDP.
"Over the last few years another very important achievement has been economic restructuring. In 2005, the non-oil sector played a major role, contributing 95 per cent to GDP, as compared to 90 per cent in 2000, and approximately 46 per cent in 1975. The services sector was the driving force behind Dubai's economic growth, contributing 74 per cent of GDP, mirroring the economies of the developed world," he said.
Trade sector has experienced the highest increase in GDP share, whereas the importance of manufacturing and oil and gas sectors has decreased, yet the manufacturing sector has grown by an average of 12 per cent since 2000.
The DSP also aims at increasing labour productivity by 4 per cent.
