Because of strong partnerships, the head of the Dubai Chamber of Commerce thinks that trade with other countries will grow by 5%. Abd Aziz Abdulla Al Ghurair, the head of the Dubai Chamber, is positive about the emirate’s economy and thinks it will increase by 5% in 2024. Putting money into infrastructure, being a good place to do business, and the chance that interest rates will go down all help this growth path.
Key Sectors Fuel Dubai’s Resilience Despite Global Economic Challenges
The rating agency says that Dubai’s wholesale and retail, financial services, and hospitality industries will all grow quickly in 2024/25. Leskova said that the problems in the world economy have less affected the UAE and Dubai in particular. This is because they react less to changes in interest rates, and inflation is low there.
There were more mortgage deals in Dubai even though interest rates went up. This is because more than 80% of real estate deals are paid for with cash. On the other hand, the European real estate market has had less buying power since 2022 because of higher inflation and interest rates.
Also, it’s still hard for developers who borrowed money to make money in China because as prices drop, profit margins grow, making it harder to make money. Things got better in the US when demand went back up after going down at the start of 2023.
Reason and Past Years Comparison
Al Ghurair told the Emirates News Agency (WAM) outside of Dubai Chambers’ annual media briefing that the recent rise in interest rates would soon be reversed, meaning lending rates would go down. His words showed that even though interest rates are high (they can reach 6% or more), they are still lower than in many other places. Businesses that are already strong can grow without having to borrow money just because interest rates are low.
He said past successes support growth trends now and in the future and make the workplace a good place. He thought Dubai’s trade with other countries would grow by more than 5 percent, thanks to the large-scale partnerships.
In his speech, he talked about how important DP World’s ports are for moving goods between regions and how well they help businesses with their logistics worldwide.
In 2023, Al Ghurair talked about how well the Dubai Chamber did. He said that the number of new licenses issued increased by over 22%, the biggest increase ever.
He also said that Dubai has many more big businesses now than before. He said that the emirate’s infrastructure and integrated environment make it appealing to all types of businesses, from small and medium-sized ones to digital firms and large multinationals.
S&P Global Predicts Strong UAE Economic Growth, Highlighting Key Sectors
Tatiana Leskova, an associate director of corporate ratings at S&P Global, told WAM that same month that the UAE’s GDP will grow, especially in Dubai, because the hospitality, financial services, and wholesalers will all see strong growth.
S&P Global predicted the world’s GDP would grow by 2.8% in 2024. Leskova also said that the UAE’s economy grew by more than 3% in 2023, even though the world economy didn’t grow much. At the same time, the International Monetary Fund says that the UAE’s GDP will rise by 4%.
Conclusion
Abu Aziz Abdulla Al Ghurair, Chairman of Dubai Chambers, said the city’s economy would grow by about 5% this year. He said Dubai is a good place to do business and has good infrastructure. Around the middle of the year, interest rates will also start going down.
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