Dubai’s economic growth slowed last year, figures released by Dubai Statistics Centre on Saturday indicated.
The emirate’s gross domestic product grew 2.6 per cent to Dhs389bn ($105.9bn) in 2017 compared to a growth rate of 2.9 per cent the previous year.
Dubai Economic Department had forecast the economy would growth 3.2 per cent in 2017 and 3.5 per cent in 2018.
During 2017, the transport and storage sector surpassed wholesale and retail as the biggest contributor to economic growth, accounting for 18.5 per cent and 8.3 per cent respectively.
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This came as the wholesale and retail sector grew just 0.9 per cent for a total contribution of Dhs103.6bn ($28.2bn).
The transport and storage sector grew 4.5 per cent to Dhs46.1bn ($12.5bn), industry grew 2 per cent to Dhs36.8bn ($10bn) and real estate grew 7.3 per cent to Dhs27.6bn ($7.51bn) after an increase in transactions by volume and value.
The construction sector was up 3.5 per cent to Dhs24.5bn ($6.67bn) after government infrastructure spending increased by almost 27 per cent.
Accommodation and food services grew 8 per cent to although the exact value was not specified outside of a 4.9 per cent contribution to real GDP.
Total imports and re-exports grew by 2.2 per cent, attributed to growth in industrial outputs and capital goods, which contributed 1.8 per cent and 1.6 per cent to the growth of foreign trade.
“These figures provide solid evidence for the fact that Dubai plays a dynamic role in supporting trade between the region and the rest of the world. This growing role has boosted the growth of Dubai’s trading sector,” said Dubai Statistics Centre executive director Arif Al Mehairi.
This year Dubai’s government departments have been asked to propose a series of reforms designed to boost business confidence and economic growth. These include the rationalisation of government fees and a new mortgage law.
By Robert Anderson
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