13 July 2018
Dubai: Merchants of Doubt
An analysis of the Dubai GDP growth rates reveals that since 2014 the economy has been growing at a slower pace, which coincides with the crash of oil prices and the rise of geo-political tensions in the region. Last year Dubai had the slowest growth rate it has had in the last 7 years and is expected to remain constant in 2018, although it is becoming apparent that the forecasts are now tilting towards the upside. Projections for 2019 by the IMF and Oxford Economics, all reveal an uptick in the economy.
In 2018, the Dubai government announced the largest public budget ever (20% increases YoY), while achieving an operating surplus of AED 2.5 billion. The major beneficiary of the budget has been the infrastructure segment, accounting for 21% of the total government expenditure. This move is in line with Dubai’s Strategic Plan for 2021 as it gears up to host the World Expo event in about 24 months.
In response to sluggish economy the government has taken the necessary reforms and initiatives that allow for greater private sector participation and flexibility — reflecting a logical extension of government decisiveness — has been embedded into the fabric of the economy for decades.
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