While a lot of economic indicators show that there is no real cause for concern, there continue to be some alarmist reports about a downturn in the UAE’s economy. While there have been some signs of sluggishness in the near term, there are several very good reasons to be hopeful about the economy of the UAE and Dubai, in particular, going forward. Future progress seems to hinge upon the retail and tourism sectors.
One report describes Dubai's economy as witnessing the lowest growth rates in ten years; dipping below 2%. However it also says that this is set to change; that the GDP will accelerate to 2.1% this year, 3.8% in 2020 and 2.8% in the following year.
As the economy moves away from being oil based and diversifies further, there is likely to be revival owning to improved optimism on jobs, the granting of new business licences etc. The growth in financial services is expected to be marked; increasing from 0.6% in 2018 to 2.4% this year.
It is expected that the Expo 2020 will give a significant boost to the local economy because the half-year long exposition will bring in investment, trade, tourism to the region. New hotels are being built to accommodate the influx of tourists and businesses that will come in at the time. This video gives an idea of the scale of the event.
Experts believe that retail and tourism sectors are going to lead the way to the expected upturn of the region. Fresh numbers indicate that this is true. The total number of Visa card transactions by international tourists has seen a sharp increase. Visitors into the UAE made Dh22.8 billion worth of card transactions; which is a 22% increase from the previous year.
Mass as well as niche tourism has seen an uptick because of the increase in the appeal of the UAE as a tourist destination for international travellers. Nearly 16 million people visited Dubai in 2018; making it the 6th most visited city.
There are many unique options for tourists to marvel at in Dubai. The Dubai Frame at Zabeel Park is one such and has also won the best award for the best leisure tourism project at the MEED Projects Awards. The unique design attracts a large number of visitors to Dubai – as many as one million visitors within a year of opening. Dubai boasts many other such unique attractions as well as top shopping options; so it is easy to see why retail and tourism will lead the way to an economic revival in the region.
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