Dubai’s economy grew by about 5-6 per cent in real terms in 2011, according to the Dubai Economic Council (DEC) and is set for another year of positive growth in 2012.
The DEC did not provide a forecast for 2012 growth, but said the economy would grow 4.1 per cent in real terms in the first quarter of 2012, compared with the last quarter of 2011.
Abdelrazaaq al-Faris, chief economic counsellor at DEC, said positive momentum was provided by the tourism and trade sectors, but added that “construction and real estate sector growth will remain weak”.
“There is still oversupply in the market and this will not change for two to three years,” says Al-Faris.
Additional downside risks to Dubai’s economy were the government’s debts and the potential for a further escalation in Western confrontations with Iran, which would hit business sentiment across the region.