Dubai GDP growth seen at 4.7 per cent in Q2

Dubai’s gross domestic product, or GDP, is expected to post a 4.7 per cent growth in the second quarter of the year compared to same period last year, as the emirate witnessed a new wave of economic growth during the first six months of 2013, according to a latest report by the Dubai Economic Council, or DEC, on Saturday.

The council’s “economic outlook” report attributed second quarter growth to the expansion of the four sectors — wholesale and retail, transportation, manufacturing and real estate.

The DEC said that the performance in the second quarter is a reflection of the momentum witnessed by Dubai’s economy during the first quarter of 2013. Most of macroeconomic and sectoral indicators witnessed growth in the second quarter that exceeded those in the first quarter of this year and the last quarter of 2012, the report said.

The council, in its previous report, estimated that the emirate achieved a 4.1 per cent growth in GDP during the March quarter and attributed it to the growth of key sectors of the economy.

The report’s findings covering all key sectors stated that the real estate sector in Dubai witnessed a new wave of growth during the second quarter in terms of both value and number of apartments. The tourism sector continued its outstanding performance this year and exceeded levels in the same period of last year. The number of hotel guests during the first half of 2013 recorded more than five million from various countries around the world. The number of hotel guests during the second quarter of 2013 reached 2.12 million, with an 80 per cent occupancy rate.

The value of Dubai’s foreign trade in the first half of 2013 achieved a new record, reaching Dh679 billion, compared to Dh584 billion in the same period of 2012, showing a growth of 16 per cent. India, China and the US ranked as the top three trade partners.

The backbone of any economy in the world, the financial sector also performed very well in Dubai as deposits and advances of the emirate’s banks grew in the second quarter compared to the corresponding period last year. The second quarter witnessed a 16 per cent growth in Dubai banks’ profits, compared to the first quarter of the same year, according to the DEC.

Bullish activity at the Dubai Financial Market, or DFM, helped its General Index to jump by more than 21 per cent in the second quarter compared to the previous period. The benchmark index closed at 2,222.57 points at the end of June 2013 compared to 1,829.24 points at the end of March. In terms of sectoral performance, the real estate and construction sector is still considered the most important stock in the performance of the DFM indicator.

— abdulbasit@khaleejtimes.com