Dubai growth to outperform other GCC countries
Dubai has been positioned among the world's best most-visited cities and secured 6th place after Hong Kong, Bangkok, London, Singapore and Macau by Euromonitor International in its top 100 city goals rankings.
Expansion has put the Dubai economy on the road to progress and the emirate will outperform the other Gulf nations by supporting solid development in gross domestic product (GDP) in 2017 and 2018, as per a recent report.
Establishment of International Finance (IIF) said Dubai has performed generally well because of its differentiated economy. Tourism, retail exchange and transport will keep on being the key driver of its financial development.
"We anticipate that development will quicken from 2.9% in 2016 to 3.2% in 2017 and 3.5% in 2018," said Garbis Iradian, leading economist expert for Middle East and North Africa at IIF.
The IIF development gauge is in accordance with the International Monetary Fund (IMF), which said Dubai will record 3.2% development this year contrasted with 2.8% in 2016. "Dubai economy is moving at generally great speed because of interest in foundation ventures drove by Expo 2020 developments," Jihad Azour, executive of the IMF's Middle East and Central Asia Department, said recently at a media briefing in Dubai.
Developing and spending in infrastructure is a prime concentration of Dubai government as it logged a 27% year-on-year increment in 2017 due to the allocation of more funds to complete the Expo 2020 projects. It has accounted for 17% of total expenditures this year, reflecting the emirate's concern for the gradual implementation of Expo 2020 developments, according to analysts.
"With the government focus on the Expo 2020, there will be additional government spending which in turn will provide lubrication to the economy. Being a stable and peaceful country in the region, the UAE in general and Dubai in particular, are seen as an investment destination in the region," Atik Munshi, senior partner at Crowe Horwath - UAE, said.
From an economic growth standpoint, he said it isn't surprising that the IMF and other international organisations have anticipated a higher growth for Dubai GDP upheld by the non-oil income. He said the primary factor will really originate from the implementation of value-added tax, which is expected upon to deliver a lift to the government exchequer.
"Real estate and construction, which is one of the major sectors for Dubai has also fared better and the same is expected to continue in 2018. I personally feel that the Dubai GDP will be in excess of 3.5 per cent in the next year," Munshi quoted.
Dubai Economy additionally gauges that the emirate's GDP will develop at 3.1% this year and 3.6% in 2018 as it interests involve a diversification policy to reduce reliance on trade and trade but alternatively concentrate more on real estate, manufacturing and tourism.
Richard Stolz, head of corporate improvement at grmc Advisory Services, said Dubai's tourism segment is consistently developing in terms of tourist numbers visiting the city.
"For the first time in nine months of 2017 Dubai's visitor number grew by 7.5% over a similar period a year ago to total of 11.58 million overnight visitors. The enduring development in this division can absolutely be viewed as one of the contributors of Dubai's developing GDP," Stolz revealed.
Dubai has been positioned among the world's top most-visited cities and held 6th place after Hong Kong, Bangkok, London, Singapore and Macau by Euromonitor International in its best 100 city goals rankings. It is anticipated that the quantity of tourists to the emirate will achieve 16.56 million in 2017 when contrasted with a year ago's 14.9 million, a growth of 11.2% - giving Dubai the highest growth across the top 10 cities.