ABU DHABI: The global monitoring and evaluation institutions vary in their forecasts for Dubai's economic growth rates for 2019 to 2023, but all agree that the Emirate of Dubai has a proactive capacity to absorb and neutralise the negative repercussions of the global economic and trade volatility.
The continued economic activity, which is regularly supported by the Government of Dubai through spending on all development scenes, enhances the confidence of the global financial institutions in the emirate.
It was no coincidence that His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, announced yesterday (Sunday) the allocation of Dh6.5 billion for new projects, including the first Environmental Satellite, (DMSAT1), Waste Management Centre, and Dubai Traditional Market projects as they are well-planned projects that will increase confidence in the economy of Dubai in particular, and the UAE in general.
In its latest report about its forecasts for 2019, the International Monetary Fund, IMF, expects the average global growth rate at 3.6 per cent during the period from 2019 to 2023, but it has forecast Dubai's economy growth to reach 4 per cent this year, of which 3.3 per cent is for the non-oil sector.
The IMF is optimistic about the continued growth of the Dubai economy in particular and for the UAE in general, due to the continued spending on infrastructure development and construction in preparation for the Expo 2020 Dubai as well as intensive investment in technology, digital and technical programmes.
Attractiveness of Dubai
You can also add one more advantage, which is lowering the cost of doing business through reforms and incentives aimed at speeding development, which is recorded by the IMF in order to enhance the attractiveness of Dubai as a preferred destination for global investments.
Dubai has increased the number of its overseas promotional missions to five missions in 2019 that will visit 10 world cities in the United States, China, Japan and South Korea to explore new investment opportunities and strengthen old trade and investment ties.
Meanwhile, in the first half of 2018, Dubai attracted Dh17.8 billion in foreign direct investment, FDI. As part of its commitment to growth, investment and trade, Dubai's promotional missions target the regions and countries which have been associated with the emirate through strategic partnerships over the past two years given the role and location of the UAE as a key gateway to the Middle East.
The figures issued by the Dubai Chamber of Commerce and Industry regarding growth rates from 2019 to 2023, are not very different from the IMF data. The emirate's growth rates, as read by the chamber, reaches 4.7 per cent, surpassing the average GDP growth in the next five years at 3.8 per cent.
Regarding the financial sector in Dubai, the Bloomberg Economic News Agency, has mentioned the transition to a new and advanced stage in the top lists of the global financial centres.
In a previous report, entitled "What recession they talk about in Dubai", Bloomberg has underestimated the rumors of recession and downturn in its economic activity, while emphasising that Dubai leads the Middle East as a financial centre and is now carrying out a programme to triple the area of this sector and tax incentives on salaries for 50 years, consequently needs continued expansion of employment, pointing out in this regard to the Dubai International Financial Centre of the expansions which are up to 300 per cent in its area and equivalent to the total area allocated to the Canary Wharf the commercial estate in London.
Whatever the expectations, there is a firm belief that the UAE is setting and implementing its plans, and is carving its future with strong determination and relentlessness; it does not know the recession and does not believe in it, but believes that its place is at the forefront, leading the way for all.