Dubai has overcome COVID-19 shockwaves, to grow by 3.4% in 2022: Sheikh Hamdan

Crown prince attributes Dubai's positive performance to Dubai ruler's 'foresight'

Dubai's Crown Prince Sheikh Hamdan bin Mohammed. Image courtesy Dubai Media Office Twitter handle.

Dubai's Crown Prince Sheikh Hamdan bin Mohammed. Image courtesy Dubai Media Office Twitter handle.

Dubai Media Office

The Dubai economy has emerged from the challenges posed by the coronavirus pandemic and is set to grow by 3.2 percent this year and 3.4 percent in 2022, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, said on Tuesday.

“Dubai has overcome the pandemic’s global shockwaves,” the crown prince said on Twitter.  “Dubai’s position as a global economic capital has been supported by clear goals, flexibility and speed in responding to changes, as well as consistent legislative development. We have created an attractive investment environment for creative energies who match our ambitious path,” he added.

Dubai is gearing up for hosting of Expo 2020, the world’s biggest in-person event since the pandemic started last year. The event is expected to attract 30,000 visitors each month, which will be a big boost for the local economy and businesses in certain sectors, such as tourism and hospitality.

Latest official statistics

According to a statement quoting the Dubai Statistics Centre, Dubai’s economy grew by 1 percent during the first quarter of 2021 compared to the fourth quarter of last year, based on preliminary estimates of the seasonally adjusted real gross domestic product (GDP).

The growth has been fueled by strong performance in the manufacturing sector, as well as by the improvement in tourism, transport and warehousing activities. The financial sector also achieved a remarkable growth over the same period.

Aref Al Muhairi, executive director of the Dubai Statistics Centre, said Dubai’s economy managed to achieve remarkable activity in several sectors, such as trade, which grew by 2.8 percent in the first quarter compared to the same period in 2020. This contributed to the overall economic performance by 24.3 percent, he said.

Data issued by Dubai Customs also indicates that non-oil foreign trade in the first quarter of 2021 grew by 10 percent, reaching 354.4 billion dirhams ($96.4 billion), compared to 323 billion dirhams in the first quarter of 2020.

Financial and insurance activities also achieved a growth of 3.5 percent during the first quarter of 2021 compared to the same period in 2020. Their percentage of contribution to the GDP increased to 12.8 percent.

At the same time, total loans during the first quarter grew by 2.6 percent and deposit balances by 3.3 percent, while interest rates on loans dropped by 24 percent and on deposits by 35 percent.

(Writing by Cleofe Maceda; editing by Seban Scaria)

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© ZAWYA 2021

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