Dubai: According to Ehsan Khoman, a researcher at the Dubai Chamber of Commerce and Industry, Dubai’s economy represents over 30% of the UAE economy, along with manufacturing, as well as, retailing containing the largest shares. The statement was given at a conference.
Region wise, while Abu Dhabi shared around 55% of the GDP in 2007 by sharing nearly 30%, the overpowering share of FDI investment has been in the Emirate of Dubai.
While if we talk about growth performance, Dubai has outperformed and in fact, better than Abu Dhabi in 2007, the recession in Dubai’s construction and real estate sectors is poised to lead to a weakening of the output of Dubai as compared to that of Abu Dhabi.
This fail of demand across the globe forecasts that the export and re-export sectors of Dubai are likely to suffer in the coming times.
Furthermore, expansion process in sectors especially tourism will also slow down owing to the weaker private consumption growth. Due to this, there could be a loss of revenue generated by the tourism industry. However, this will not hamper the growth of Dubai from a global perspective.
A lot of determination has been witnessed by the Dubai authorities. If the authorities use strong fiscal expansion with the objective to ensure that the economy bounces back in the construction domain, it would symbolize that the economy will always have a steady growth.
In addition to this, even the international agencies comprehend what Dubai is likely to suffer from the backlash of the global economic slowdown, but it also believes that it just a matter of time and no recession can restrict the overall output of Middle East country.
According to Hamad Bu Amim, Director-General of the Dubai Chamber of Commerce and Industry, the UAE economy, at the same time is likely to rebound soon with a gradual recovery that is yet forecasted to stretch soon.