Dubai's economy will continue to expand at a good pace this year, backed by the strong recovery in key sectors and successful Expo 2020.
The emirate’s economy could expand by 4.5 percent this year. This year, almost all major industries are seeing an upward growth trajectory, including hospitality, food and beverages, real estate, wholesale and retail, transport, manufacturing, and financial services. The economy’s growth phase started in the second quarter of last year after a tough 2020. But the growth is expected to moderate this year.
Preliminary data from the Dubai Statistics Centre showed the economy growing 6.3 percent year-on-year in the first nine months of 2021, underpinned by a strong rebound in hospitality, trade, and real estate sectors. After contracting by 3.7 percent in the first quarter, the economy expanded 17.8 percent and 6.3 percent in the second and third quarters of 2021, respectively.
The 2022 projections of the Emirates NBD are in line with the overall growth rate of the UAE economy projected for 2022 by the Central Bank. The apex bank expects the economy to expand by 4.2 percent in 2022.
Dubai GDP contracted -10.9 percent throughout 2020, but the economy and good progress with the recovery. But it was still not back to pre-pandemic levels of real output by the end of Q3 2021, Emirates NBD said.
In the first nine months of 2021, real estate services saw strong growth of 23.3 percent during the first nine months of 2021, more than making up for the contraction in the sector in 2020. Low-interest rates, demand for larger units, and increased foreign demand for homes in Dubai supported the recovery in the real estate market last year.