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Abu Dhabi / WAM
Government-led policy initiatives and investments, improved growth prospects in trading partners, and preparation to host Expo 2020 Dubai are providing increased private sector credit and investment in Dubai. As a result, real GDP growth rates in the short to medium term are projected to reach 2.1 percent, 3.8 percent and 2.8 percent, in the years 2019, 2020 and 2021, respectively.
The Department of Economic Development (DED) on Sunday released a report about the Dubai Economy, saying that economic momentum picked up at the beginning of this year, with a surge in new business licenses and improved optimism on jobs and business performance. During the first three months of the year, 6,709 new business licenses have been issued, a 29 percent increase over the same period in 2018.
Similarly, the first quarter composite business confidence index (BCI) climbed 10.2 points from the previous year and 7.7 points from the previous quarter, indicating a marked improvement in business prospects and overall sentiment.
The majority of businesses indicated their intention to place new orders and, subsequently, expect volume, revenues, as well as profits to increase. The quarterly BCI survey conducted by the Department of Economic Development (DED) also indicated that 59 percent of companies are optimistic about growth in Q1 2019, compared to 41 percent for the same period of 2018, and 34 percent expect stability, while 7 percent of businesses expect a decline in growth, down from 8 percent a year ago.
During the first quarter of this year, the Dubai Financial Market General Index gained 4 percent. Net foreign investment in the market during the first three months of the year reached AED 680 million and accounted for 65 percent of the total trade in DFM. Institutional invest-
ors accounted for AED 492 million of first quarter investment, underlining their growing confidence in Dubai’s economy.
Under the leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and follow-up by HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, the Government of Dubai took decisive actions to accelerate the rate of economic growth in the emirate, which reached 1.7 percent in the first half of 2018.