Dubai on track to grow faster in 2017

Dubai grew by 2.7 per cent in real terms in 2016 despite declining oil prices, sluggish growth in developed as well as many emerging economies.

Dubai remains "committed to pursue its policy of openness" and proactive trade and investment goals as its economy looks set to achieve a higher growth trajectory in 2017, Shaikh Ahmed bin Saeed Al Maktoum, Chairman of the Economic Development Committee in Dubai, said on Tuesday.

Dubai is now on track to grow by 3.1 per cent in 2017 as the emirate continues to embrace the world economy through welcoming trade, investment, people and ideas, said Shaikh Ahmed, who is also President of Dubai Civil Aviation and Chief Executive of the Emirates Group.

Dubai grew by 2.7 per cent in real terms in 2016 despite declining oil prices, sluggish growth in developed as well as many emerging economies, and a mere 1.7 per cent growth in global trade, the lowest since 2008-2009.

Asserting that sustainability and flexibility are the most notable characteristics of the emirate's ongoing economic and social transformation, Shaikh Ahmed said Dubai is committed to pursue its decades' old policy of openness.

The International Monetary Fund had predicted that Dubai's economy would grow by 3.6 per cent in 2017 compared to 3.3 per cent in 2016 and 3.5 per cent in 2015. In October 2016, the IMF said the UAE is expected to achieve 2.5 per cent gross domestic product (GDP) growth in 2017 compared to 2.3 per cent in 2016.

Delivering his keynote at the 'UAE Economic Outlook 2017' hosted jointly by the Dubai Department of Economic Development and the Abu Dhabi Department of Economic Development, Shaikh Ahmed also revealed that Dubai will announce its future economic outlook twice every year from now onwards - in January and October. The economic outlook will shed light on growth opportunities in the emirate both at the macro-economic and sectoral levels and against the global economic backdrop.

He said the UAE's efforts at economic diversification continues unabated with a target of increasing the contribution of the non-oil sectors to the nation's GDP from 70 per cent at present to 80 per cent during the next 15 years.

"More than three decades ago, our leadership put diversification on the top of the development pyramid in Dubai and the growth vision and strategies adopted since then have all focused on accelerated and sustainable growth. It has led to faster integration of the emirate's economy into the global economy and quantitative as well as qualitative growth away from oil. Real economic growth has averaged five per cent a year, while the importance of non-oil economic activities has grown steadily," Shaikh Ahmed said.

He noted that the UAE continued the course of diversification and progress in 2016 and achieved new milestones. "This includes a jump of eight points in the World Bank Doing Business report, from the 34th to now the 26th easiest country in the world for doing business, and ahead of any other Arab country. The World Bank also recognised the UAE as one of the top 10 most improved business environments over the past year," he said.

The UAE also topped the list of countries in the Middle East and North Africa region Global Entrepreneurship Index Report 2016, and ranked 19th in the world ahead of countries such as Norway, South Korea, Turkey and Japan, he said.

According to the World Competitiveness Report 2016-17, the UAE is second only to Singapore in the Air Transport Infrastructure Quality index that measures the general level of infrastructure in airports and their compliance with international standards.

Shaikh Ahmed said environmental sustainability is another guiding principle of the UAE 2021 National Agenda to entrench the principle of sustainability in the march towards a diversified and competitive green economy in the UAE.

"We are working to ensure sustainable development while preserving the environment, and to achieve a perfect balance between economic and social development through improving the quality of air, preserving water resources, increasing the contribution of clean energy, and implementing green growth plans," he said.

He said the UAE would continue to work closely with the private sector to boost productivity growth and improve the quality of public services.

- issacjohn@khaleejtimes.com 

• Dubai

Issac John

issacjohn@khaleejtimes.com