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Dubai Economy to Undergo ‘Structural Shift’

Sectors such as transportation, healthcare, education, and financial services will become more important components of the emirate’s GDP, Dr Omar bin Sulaiman, Governor of the Dubai International Financial Centre, or DIFC, told members of the Dubai Chamber of Commerce and Industry.

“This shift in the relative importance of various sectors of the economy is, in fact, a central component of the Dubai Strategic Plan 2015, but it’s happening more quickly than envisioned by the plan, largely due to the impact of the global crisis,” said Dr bin Sulaiman during the Dubai Chamber’s quarterly Business Breakfast.

“Additionally, because many of these sectors qimpact residents’ quality of life, the shift currently underway will further enhance Dubai as a place to live, especially alongside the government’s continued support of culture and the arts,” he added.

“We are blessed to be living in an open and flexible market economy that allows us to adjust quickly in the face of rapidly changing global conditions. As a result, we soon will begin to see signs of a mature economy taking shape in Dubai and the UAE.”

At the same time, high-growth industries such as real estate will continue to be integral to the make-up of Dubai’s economy, he said.

While acknowledging that this economic shift comes with pain to some companies and employees, he said the issue is more about a shift in the mix of jobs, rather than a decline in employment. “While there has been a loss of jobs in real estate and related sectors for example, positions are opening up in healthcare, education, hospitality, financial services and trade.”

The networking event is part of the Dubai Chamber’s support and promotion of the interests of the emirate’s business community, as well as the Dubai government’s policy of dialogue and engagement with the private sector.

“This event aims at facilitating direct communication between public and private sectors where our members are presented with an opportunity to put forward issues and challenges that they face before the concerned officials,” said Dubai Chamber Director-General Hamad Buamim.

Buamim said that Dubai’s economy is witnessing the first signs of recovery and investors are showing more confidence.

According to the latest findings and figures, profit rates in the banking sector has only dropped by 4 per cent, while assets increased by 2 per cent. Passenger traffic recorded by Dubai International Airport increased by 6.5 per cent in April, and it is expected that this number reaches 10 per cent in 2009, in a strong indication that Dubai is still a favoured business and tourist destination, and it is ranked as the top FDI destination city in the world by a Financial Times report.

“Despite the crises Dubai’s current exports are still growing in comparison with the exports of 2007, since 2008 was an exceptional year of growth and 2007 is the norm and we still expect to see more growth,” Buamim said.

· abdulbasit@khaleejtimes.com