27/11/2012 - Dubai Investment News Posted by Neil King
Dubai's gross domestic product (GDP) grew by an impressive 4.1 per cent in the first half of 2012 - highlighting just how strong the emirate's economy is.While many other countries around the world saw their GDP contract between January and June, Dubai went from strength to strength.According to the Dubai Statistics Centre, a significant surge in visitor numbers was the main factor behind the city's solid performance.Indeed, five million people stayed in one of the emirate's luxurious hotels during the six-month period, which represented a rise of 9.6 per cent on the first half of 2011.Meanwhile, firms operating in the hospitality sector (hotels and restaurants) saw their profits increase by 16.1 per cent, Reuters reports."These indicators are moving towards growth because of the diversity of Dubai's tourism product," commented Arif Obaid al-Muhairi, executive director at the Dubai Statistics Centre."That helps attract more tourists, which reflects positively on demand in related activities and improves performance of the local economy."Retailers reported a 3.8 per cent rise in trade during the first half of the year and the sector accounts for one-third of Dubai's overall GDP.There was also an upturn in the real estate sector, with activity growing by 1.5 per cent.With a host of new developments in the pipeline, it is definitely an exciting time to be a property investor in the UAE.The latest economic statistics will come as a huge boost to Dubai's leaders, who have been predicting positive growth for quite some time.Director-general of Dubai's Department of Economic Development Sami al-Qamzi recently told the Financial Times that he fully expects Dubai's GDP to grow steadily over the next three years.He feels that if current trends continue, there is every chance the emirate's GDP will increase by between 4.5 and five per cent each year between now and 2015."We think that growth will be more sustainable, albeit at a more moderate pace than in previous years," Mr al-Qamzi was quoted as saying.