International Finance

Dubai GDP to grow 2.4% in 2019; 59% firms optimistic of growth

Dubai economy growth, Dubai economy, Expo 2020
Activities around Expo 2020 will increase GDP growth to 3.8% in 2020

Dubai’s GDP is expected to grow 2.4 percent in 2019, according to a statement from the Department of Economic Development (DED). The emirate’s economy is expected to further grow by 3.8 percent in 2020 before decelerating to a 2.8 percent growth in 2021. Last year Dubai’s economy grew 1.9 percent.

According to the DED’s survey, in the Q1 2019, 59 percent of the companies in the emirate are optimistic of growth compared to 41 percent in the corresponding period last year. Only seven percent of the businesses expect a decline in growth compared to eight percent last year.

The financial services sector is expected to grow faster in 2019 at 2.4 percent compared to a 0.6 percent growth in the past year. DED expects tourism to grow by 6.2 percent in 2019 and 2020.

For 2020, the government expects foreign investments to reach AED50 billion from AED38 billion in 2018. Economic growth is set to spike in 2020 on the back of Expo 2020 activities and higher investment inflows.

The government expects the deceleration in economic growth in 2021 as a natural result of the tapering of the spike in economic activities in 2020.

During the first three months of 2019 the government granted 6709 new business licences, which is a 29 percent increase over the corresponding period in 2018.

The six-month Expo 2020, which will start in October next year, is alone expected to add AED23 billion in gross value added to the economy, a key economic metric. DED forecasts that Expo 2020 might add AED62 billion of gross value to the economy between 2021 and 2030.

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