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FINANCIAL NEWS
Dubai’s real estate to lead economic growth in 2015
18 Dec 2014
(MENAFN) Dubai’s Department of Economic Development said that it expects real estate and construction will likely drive economic growth in 2015, which is expected to grow 4.5 percent next year compared to an estimated 4 percent in 2014, Times of Oman reported.
The department said that it forecasts that the real estate and construction sector will expand about 6 percent each, an increase compared to the 3.5 percent increase expected for this year, with the growth expected to be attributed to the mega construction projects happening in the emirate in preparation to hosting the Expo in 2020.
Dubai, the second-richest emirate in the United Arab Emirates after Abu Dhabi, has been relying on tourism and hospitality since the 2008 when the prices of real estate crashed, leading the emirate’s government to become on alert against volatility in the real-estate market, as well as remaining focused on meeting the real demand of this sector within the emirate’s economy.
Meanwhile, Dubai’s capital spending is expected to remain steady for 2015 though it may slow in the following year if oil prices continue with their drop, which began in June and resulted in prices reaching their five-year low.
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