ABU DHABI, (Pakistan Point News - 26th Nov, 2019) Dubai’s economy, largely driven by positive growth in the non-oil sectors, is clearly driving up the business confidence, said Gulf news in an editorial on Tuesday.
For the first half of 2019, the real Gross Domestic Product, GDP, grew by 2.1 percent supported by resurgent growth in sectors such as transport and storage, which grew by 6.2 percent. Wholesale and retail trade grew by 3.3 percent and accommodations and food service grew by 2.7 percent while real estate activities grew by 2.1 percent.
The growth comes broadly in line with government’s own estimate of 2.1 percent growth for 2019 and is aligned to forecasts by global institutions such as the International Monetary Fund, IMF, and the Institute of International Finance which pegged the real GDP growth above 2 percent, in the beginning of the year, supported by the revival in key non-oil sectors.
"Various independent studies in recent months have indicated that business confidence in the UAE is on the rise supported by investments linked to Expo 2020 Dubai and Abu Dhabi’s fiscal support package," added the editorial comment.
A recent t HSBC study found that 83 percent of the UAE’s businesses anticipate growth over the next 12 months, with at least 35 percent looking to grow by 15 percent or more.
Latest Purchasing Managers’ Index, PMI, figures for both the UAE and Dubai showed despite tough economic environment, business expectations towards future output growth improved in October.
"Dubai’s non-oil firms continued to improve their output and the overall expansion was solid and the fastest since April. Firms were positive that new strategies and greater investment ahead of the Expo would lead to higher levels of activity," explained the daily.
"While revival in non-oil sectors lend credence to the sustainability of Dubai’s GDP growth, the overall fiscal stability of the UAE supported by strong large financial buffers, sizeable current account surplus and rising inflow of foreign direct investments will further improve business confidence," concluded the Dubai-based daily.
