Dubai's Economic Growth Report

Dubai's Economic Growth - Impressive Gains

(By Gulfnews)

Dubai's economic growth from 2000 to 2005 was remarkable, with double-digit real GDP growth and a relatively high per capita income despite negligible dependence on oil. (The driving force behind Dubai's economic performance has been the government, through investments and other initiatives, supported by the private sector.)

Economic performance at the sectoral level has also been impressive, and was led by trade, construction and real estate sectors, with good signs of successful diversification.

GDP Growth (2000-2005)

Dubai's historical economic growth has been truly impressive. In particular, since the year 2000, real GDP has been growing at a compounded annual growth rate of 13 per cent, by far exceeding that of its GCC counterparts (see figure 1).

The Dubai economy has also been growing faster than the emerging economies of China and India, and the developed economies of Ireland, Singapore and the US.

Much of Dubai's current success has been a result of its bold and visionary leadership and innovative human resources, mainly driven by government policies aimed at improving the business and investment environment, in addition to initiatives to establish specialised zones and mega projects (e.g. Internet and Media City, Healthcare City, The Palm, Dubailand, etc).

Those developments ensured a leading role for Dubai and helped attract excess regional liquidity in the form of Foreign Direct Investment (FDI).

Economic growth has also been fuelled by private sector participation in developing sectors for which the government has set the stage by establishing a conducive business environment, coupled in many instances with heavy initial investments to boost private sector confidence.

Other supporting factors are supply-side factors such as availability of labour and land for major real estate projects; the existence of efficient government services; a solid institutional framework and good mechanisms for service delivery; strong laws and regulations; excellent infrastructure, a strategic location coinciding with the rapid rise in global trade, especially in China and India, and openness to other cultures, giving Dubai a reputation as a safe and comfortable place to live and do business.

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