Dubai's economic recovery is gaining momentum and becoming more broad-based.
A report released by Bank of America-Merrill Lynch stated growth in gross domestic product (GDP) was likely to have reached 4.9 per cent in 2013. This is a slight rise from the 4.4 per cent achieved the year before.
The study claimed this was an important increase and testament to the fact Dubai's economy was turning the corner after the slump experienced in 2009. Although 2013's result was a far cry from the ten per cent average growth witnessed in 2010 and 2011, it was still deemed to be a step in the right direction.
In addition, the International Monetary Fund last week upgraded its growth forecast for the UAE. This followed Dubai's successful bid to become the host city for the Expo 2020 event. It raised its prediction to 4.4 per cent for the coming year, compared with its previous estimate of 3.9 per cent made in October.
According to the study, the emirate's Department of Economic Development (DED) aims to achieve growth figures of 4.4 per cent for 2014 and five per cent for 2015. It announced Dubai's population increased above estimations, accelerating by five per cent in 2013. This surpassed the government's prediction that it would rise by just 3.8 per cent.
In September, the department is likely to announce a six-year strategic plan, spanning from 2015 to 2021. It is anticipated its proposals will incorporate ambitious growth objectives, which the report stated were entirely achievable.
Meanwhile, the Dubai Department of Finance is hoping to decrease the emirate's budget deficit from 0.4 per cent of GDP in 2013 to 0.2 per cent this year. It aims to achieve this by raising revenues gained from an increase in Salik toll gates and property registration fees, while also benefitting from a jump in the number of people using the metro system.