Dubai’s efforts at diversification continue to make it a global example of how an economy can overcome any challenge it faces. A recent report shows that Dubai’s “stable macroeconomic environment, its diversification and sustainability policies, growth strategies and infrastructure initiatives continue to fuel outstanding economic performance” even when the global economy faces headwinds.
Dubai last year grew by 2.85 per cent while global GDP growth stood at 2.4 per cent. Dubai has achieved this by positioning itself as a global hub and one of the top five international centres for trade, transport, finance and tourism. “Diversification, resilience and sustainability are enshrined in every project, policy and strategy that Dubai adopts, including, for example, the Dubai Plan 2021, Dubai Industrial Strategy 2030, and Expo 2020,” said Shaikh Ahmad Bin Saeed Al Maktoum, Second Deputy Chairman of the Executive Council and Chairman of the Economic Development Committee.
Dubai has achieved this by applying an innovative vision and strategy to facilitating business, improving service efficiencies, creating new investment opportunities, and encouraging entrepreneurship. This has helped Dubai become one of the most competitive economies in the world, with its stated determination to become the most competitive economy in the world by 2021. The vision of Dubai’s leadership continues to inspire the country to find new ways of driving the economy. This economic success of course benefits us all, by allowing us all to become a city of happy, creative and empowered people. This kind of society also helps promote further economic growth that will help us sustain future generations.
While we look to the future, we know that growth is expected to continue for at least the next two years, with 3.1 per cent growth in 2017 and 3.6 per cent growth in 2018. The domestic trade sector was the chief driver of the emirate’s impressive GDP growth in 2016; however, tourism, real estate and manufacturing are expected to dominate economic activity in the years ahead.
But if one statistic truly demonstrates how successful Dubai economy diversification has become, it is that oil now contributes only 1 per cent to Dubai’s GDP. While many oil-producing economies have suffered from the fall of global crude prices over the past two years, Dubai’s economy continues to grow, providing its citizens and residents with jobs in multiple sectors.
That drive must continue. New challenges will continue to appear, as they do for every economy, but these must not be allowed to stop the emirate’s march forward.
