Dubai poised for strong growth this year

Dubai: The emirate's gross domestic product (GDP) is expected to grow 4.5-5 per cent in 2012 thanks to new opportunities created through diversification of the economy.

Addressing the Dubai Economic Outlook 2012 conference yesterday, Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of the Dubai Supreme Fiscal Committee, said: "In spite of the difficulties Dubai has experienced, its strategy of creating new opportunities through diversification has succeeded in bringing about economic prosperity and stability."

Shaikh Ahmad added that Dubai's economy returned to positive growth in the past two years, albeit at a moderate pace, compared to the pre-2009 phase.

"According to available estimates, GDP grew by about 2.5 per cent in 2010 and by more than 3 per cent in 2011, In 2012, GDP is expected to grow at 4.5 per cent," he said.

Economists and financial experts said Dubai has taken some bold decisions.

"The growth driven by trade, tourism and hospitality sectors is more sustainable in nature.

"This is major qualitative shift for Dubai's economy," said Marios Maratheftis, Head of Research, Western Hemisphere of Standard Chartered.