Receding inflation set to stimulate Dubai economy

23/01/2012 - Dubai Investment News Posted by Neil King
Receding inflation set to stimulate Dubai economy
A Kuwati bank has claimed that economic growth in Dubai is set to be stimulated by receding inflation and relatively cheap property prices in the emirate. In 2011, the UAE's real GDP swelled by around 4.6 per cent. However, the National Bank of Kuwait (NBK) has projected growth at 2.4 per cent in 2012. NBK observed that growth in the non-oil sector rose by an estimated 3.5 per cent last year - a figure the emirate is expected to match in 2012. "Another year of low inflation and soft real estate prices will boost Dubai’s cost competitiveness versus the rest of the Gulf Cooperation Council, helping to support the medium-term outlook," the NBK report read. Official data shows that in 2011, inflation in Dubai shrank to a four-year low of 0.52 per cent. With property prices at modest levels, now may be a smart time to invest in Dubai property.