Dubai is anticipated to grow at a faster rate than Global economy

It is anticipated that Dubai’s economy will experience an increase in growth during the following year, which percentage is higher than the international increase projected which stood at 3.5%. Dubai’s government and private sector will strengthen and generate more growing in the following years. 

Dubai is confident that its strong and efficient infrastructure will keep it competitive in the coming years. On that note, Dubai is also aware of the general instability evident in other international markets, but is ready to face any challenges that may occur. Dubai is convinced that it will avoid any budget shortage.

Additionally, it is anticipated that the United Arab Emirate (UAE) economy will also mark an increase in growth of 4.5% during the following year. The growth forecast is considered as a great sign when taking into consideration the instability and volatility present in other international markets.

During the next year, Dubai aims to restrict inflation in order to remain competitive as well as to maintain consumers’ spending on high levels. According to statistics, Dubai’s inflation rate climbed to 4.4% during October 2014, the highest inflation rate since May 2009, when the crisis hit Dubai. Fortunately, the rate dropped to 4.2% in November 2014, and Dubai is hopeful inflation will remain stable.

Dubai’s GDP rate also marked an impressive increase reaching 4.6% during the previous year. It is anticipated that Dubai’s GDP will increase by 4% during the following year mainly due to its diverse economy.

Dubai is confident all its sectors in general will experience growth-including its real estate, manufacturing, trade and services sectors. It is anticipated that Dubai’s economy will again increase by a higher rate than global growth because of Dubai’s economic diversification.  Although, international markets are facing instability and great unpredictability in their markets, Dubai is certain it will not be influenced negatively but is alert to face any challenges that may come up.

Furthermore, although the decline in the oil of prices will not affect the emirate on the short-run, if the prices continue to drop, Dubai’s economy will be affected in the long-run. According to projections, Dubai’s spending will remain stable throughout 2015 and changes to spending patterns may change during 2016.

It is also anticipated that households in Dubai will restrict their spending during 2015 as a result of the decrease of oil prices that may influence the amount of income they receive. 

Nevertheless, Due is confident that during 2015 the emirate will continue to grow due to its strong ability to adapt easily as well as being an international trade hub.