Dubai’s economy is predicted to maintain a stable growth in 2014. According to a new report by the Dubai Statistics Center, this year the emirate’s economy will register a rise of about 5%. This means that it will maintain its growth pace from 2013.
Still, predictions on Dubai’s economic growth seem to be a slightly more positive compared to one year ago. In 2013, the emirate’s economy witnessed a rise of 4.5%. With forecasts of a 5% growth in 2014, experts leave some space for a little more progress.
Dubai’s statistics office shared the news a few hours ago on its official website. In its report, the Dubai Statics Center explains that despite the countless warnings against the possibility of a new property bubble in the emirate, Dubai’s economy is likely to grow at a steady and balanced speed.
To back up this prediction, Arif Obaid al-Muhairi, executive director of the Dubai Statistics Center, listed three factors that will contribute to the emirate’s economic rise. According to him, Dubai already plays a key economic role in the region. In addition, the executive director reminds that the emirate has never been so open towards the world and the global economy. Last, but not least, Dubai’s popularity as a holiday destination has turned the city into a top travel spot for international tourists.
Still, Arif Obaid al-Muhairi explains that Dubai’s economic growth should not be viewed only on the basis of its tourism sector. He states that the structure of the emirate’s economy includes other important industries like transport, trade, communication, agriculture and many others. Furthermore, the executive director of the Dubai Statistics Center adds that Dubai’s real estate and construction will be among the sectors that will have the greatest influence on the emirate’s economic performance in 2014. Non-oil sectors are also expected to see a rise over the next few months. In March, they managed to register a strong growth for the fourth month in a row.
Dubai’s economy makes up about 20% of that of the United Aram Emirates. This means that the emirate’s economic performance has a direct effect on that of the country. Nevertheless, UAE’s capital Abu Dhabi still contributes around 65% of its economy due to its oil-focused industries.
