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FINANCIAL NEWS
Dubai’s economy expands 3.4% in 2011
27 Dec 2012
(MENAFN) The Dubai Economic Council’s (DEC) latest report reveals that growth of the emirate’s gross domestic product (GDP) in 2011 reached 3.4 percent, up from 2.8 percent a year earlier, reported Emirates 24/7.
The report attributed the growth to fiscal and monetary stimulus packages carried out by the UAE federal authorities and the Government of Dubai, in addition to the resilience of the emirate’s main trade partners, including India and China.
According to Dubai’s Executive Council’s Chairman, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the figures confirm the emirate’s success in prevailing over the consequences of the global crisis, due to the flexibility, diversity and dynamism of its economy, which positions it as a global business and financial center.
Although Dubai’s real estate and construction sectors were extremely affected by the global financial crisis, nevertheless, by early 2010, most of the emirate’s other sectors rebounded rapidly, as a result of the expansionary fiscal policy assumed by the government, the support provided to the financially distressed government related enterprises (GREs), and the insertion of liquidity by the UAE’s central bank into the banking industry.
Foreign and domestic trade remained the major source of income; whereas the tourism sector contributed largely to the economy due to steady growth in tourism activities and sustained investment flows.
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