Dubai's economy is expected to see sustained economic growth in 2022 supported by an expected uptick in business activity in the tourism and retail sectors, according to an analysis from Dubai Chamber.
In 2022, the UAE economy is projected to record an estimated annual GDP growth rate of 3.4 percent, thanks to the expected recovery in domestic demand, oil prices and the rebound in global demand for goods and services since mid-2020 onwards.
Expo 2020 Dubai and the adjustment to the Monday-Friday work week is expected to improve the prospects of UAE trade and business with the rest of the world in the short to medium term, Dubai Chamber noted.
Transport and telecommunication, trade, hospitality and real estate and business services are expected to add momentum to the Emirate's recovery over 2022-2025, according to the analysis.
New measures adopted by the government to stimulate businesses and facilitate trade, such as reducing government fees and the cost of doing business, launching new strategies for trade and reforming investment and employment laws are expected to positively impact the economy in the short to medium term.
The Dubai Chamber data also revealed that Dubai exports and re-exports recovered in the first half of 2021, reaching pre-pandemic levels.
According to Dubai Chamber Macro Economic Model (DCMM), the entire UAE economy began to recover in 2021 by registering an estimated annual GDP growth rate of 3.1 percent and a 3.8 percent for GDP excluding the oil sector.
(Writing by Seban Scaria; editing by Daniel Luiz)
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