Dubai leaders predict economic growth

16/11/2012 - Dubai Investment News Posted by Neil King
Dubai leaders predict economic growth

Dubai is continuing to emerge from the global economic downturn and the emirate's leaders are optimistic about the future.Speaking at a World Economic Forum held in the city this week (November 14th), director-general of Dubai's Department of Economic Development (DED) Sami al-Qamzi said the emirate's gross domestic product (GDP) will increase steadily over the next three years, the Financial Times reports.He feels there is every chance Dubai's GDP can grow by between 4.5 and five per cent every year until 2015."Dubai's economy is well diversified and resilient to external as well as domestic shocks," he was quoted as saying."We think that growth will be more sustainable, albeit at a more moderate pace than in previous years."Like many other parts of the world, Dubai was forced to shelve some major expansion plans when the global financial crisis took hold in 2008, as property prices tumbled.However, the real estate market has been gathering momentum in 2012 and Mr al-Qamzi insisted that "cranes are moving again" over the city.The fact the DED's growth forecasts are higher than those projected in 2007 - before the market meltdown - highlights just how strong Dubai's economy is at the moment.Members of the International Monetary Fund (IMF) stated earlier this week that the UAE's GDP is set to grow by 3.4 per cent this year - and many economists feel this is mostly down to Dubai's strength, which is offsetting the shrinking economy in Abu Dhabi.According to the Khaleej Times, Masood Ahmed - director of the IMF's Middle East and Central Asia Department - said oil exporters within the Gulf Cooperation Council have been faring well so far this year.Numerous reports have highlighted a significant upturn in Dubai's property sector of late, with the demand for office space, villas and apartments all rising - particularly in more exclusive parts of the city.Hotels have also reported higher occupancy rates so far this year, which has enabled owners to hike their room rates.