Dubai’s economy booms in the first half of 2022
Dubai’s economy moved from strength to strength in the first half of 2022, thanks to strong year-on-year growth in the emirate’s private sector and the surge in oil prices that have benefitted the UAE national budget.
According to data published by the Business Registration and Licensing (BRL) sector at the Department of Economy and Tourism (DET), Dubai issued 45,653 new business licences in the first half of 2022, marking a 25% year-on-year (YoY) rise.
"These latest figures… underline the success of measures taken to ensure business continuity and provide the option of full ownership to foreign investors,” commented Helal Saeed Al Marri, director general of DET.
"These measures have also enhanced Dubai’s growth-friendly and transparent investment environment, marked by exceptional ease of doing business and high levels of security and safety. The new data also reflects Dubai’s dynamic entrepreneurial landscape, its globally competitive offerings for businesses and the confidence that local, regional and global investors have in its growth prospects."
Oil price surge aids economic growth
More broadly, the UAE’s economy benefitted from the record surge in oil prices seen during the first half of 2022. By 27 June, Brent crude was trading for US$115 per barrel, marking a 35% rise compared to the same time a year earlier.
While prices have fallen slightly in the second half of the year, ongoing market volatility and the war in Ukraine have seen prices hover around the US$100 a barrel mark, benefiting major producers such as the UAE.
The growth of the emirate’s economy has also been reflected in its tourism and hospitality sector.
Buoyed by a 282% rise in international visitor arrivals in the first half of the year, the city’s hotel sector reported a 12% YoY rise in average hotel occupancies to 74% during the same period, while the average daily rate (ADR) rose 48% to AED567 (US$154) and revenue per available room (RevPAR) almost doubled to AED417 (US$133.55) from AED237 a year earlier.