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Low inflation coupled with strong trade to boost economy
Dubai will witness robust growth in the next few years as the trade sector continues to post increased revenues.
Abdul Rahman Saif Al Ghurair, Chairman of Dubai Chamber of Commerce and IndustryDubai Chamber of Commerce and Industry, said: “Dubai’s economy will grow between three and five per cent in 2011.”In an interview with Arabic daily ‘Al Khaleej’, he said the emirate’s economy will be strongly supported by the trade sector and added that he expects more than six per cent growth next year.
The figure also is a positive sign for businesses in Dubai, he said. The emirate this year has also seen a spurt in new companies and branches being set up enhancing competitiveness. This coupled with low inflation rate will bosting Dubai’s growth.
He disclosed that the correction in real estate and construction sectors contributed to low levels of inflation. Earlier, prices of housing and public utility services at about 36.1 per cent was one of the main factors behind the increase in inflation. Now a decline in inflation is attracting investments to Dubai, thus enhancing competitiveness of the emirate as a premier business and tourist destination.
Al Ghurair said expectations of continued economic growth in Dubai is not only upbeat, but also the figures confirm that this growth is expected to continue into the next two years.
Export and re-exports since the beginning of this year up until end-August grew by 17 per cent, amounting to Dh162 billion, compared to Dh138bn during the same period last year, he said.
Similarly, the first eight months saw more than 461,000 certificates of origin, which is a significant growth of 6.7 per cent compared to that of the same period last year.
Sectors such as trade including export and re-export services; tourism, logistics and financial services have proved to be the strength of the economy in the recent past.
Foreign trade of Dubai during the first five months of this year rose by 26 per cent, he said and added that the exports and re-exports of Dubai Chamber members since the beginning of this year until end-August grew by 17.1 per cent to Dh162.1bn, compared to Dh138.4bn during the same period last year. These figures confirm that Dubai’s economy will grow between three and five per cent this year and in 2012 cross the six per cent barrier, said Al Ghurair.
Meanwhile, the opening of Al Maktoum Airport saw a number of new hotels as well as infrastructure projects coming onboard reinforcing confidence among the public about Dubai being a premier destination.
However, regionally Saudi Arabia ranks first as the major destination for exports and re-exports during H1, having achieved a growth rate of 7.21 per cent over the same period last year.
Iraq recrded a growth rate of 7.83 per cent in exports and re-exports during H1 compared to that of last year. While exports and re-exports to the US was up by 1.45 per cent.
Meanwhile, there has been an increase in trade disputes filed at the Commercial Arbitration Centre, which rose by 3.10 per cent in the first eight months of 2011 compared to the same period last year.
© Emirates 24|7 2011