Dubai Chamber says tourism and retail sectors are set to drive sustained economic growth next year
Dubai’s economy is expected to see sustained economic growth in 2022, boosted by the UAE’s change to a Monday to Friday working week, according to new analysis from Dubai Chamber.
The research pointed to a “positive and robust recovery” for the UAE economy over the next five years supported by an uptick in business activity in the tourism and retail sectors
In 2022, the UAE economy is projected to record an estimated annual GDP growth rate of 3.4 percent on the back of an expected recovery in domestic demand, recovery in international oil prices and the rebound in global demand for goods and services, Dubai Chamber said.
It added that Expo 2020 Dubai and the adjustment to the Monday-Friday work week is expected to improve the prospects of UAE trade and business with the rest of the world in the short to medium term.
Economic sectors that are expected to add momentum to the UAE’s economic recovery over the period 2022-2025 include transport and telecommunication, trade, hospitality and real estate and business services.
Other factors that will support this growth are a strong recovery in public and private investment and strong export activity due to the rebound in the global trade given expected softening in the bottlenecks of the global supply chains, successful vaccination drive, a recovery in oil prices, accommodative monetary policy and an improvement in consumer and business sentiment, the research noted.
New measures adopted by the government to stimulate businesses and facilitate trade, such as reducing government fees and the cost of doing business, launching new strategies for trade and reforming investment and employment laws are also expected to positively impact the economy over the next few years.
The data also revealed that Dubai exports and re-exports recovered in the first half of 2021, reaching pre-pandemic levels.
According to Dubai Chamber Macro Economic Model (DCMM), the UAE economy began to recover in 2021 by registering an estimated annual GDP growth rate of 3.1 percent, rising to 3.8 percent excluding the oil sector.