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Dubai’s economy to surge by 5% in 2024

Dubai Chamber Chairman anticipates a 5% increase in foreign trade supported by significant partnerships.

Dubai’s economy to surge by 5% in 2024
[Source photo: Anvita Gupta/Fast Company Middle East]

Chairman Abdul Aziz Abdulla Al Ghurair of the Dubai Chamber sets an optimistic tone for the emirate’s economy, projecting a 5% growth in 2024. This growth trajectory is underpinned by investments in infrastructure, an attractive business environment, and the potential for a decline in interest rates.

Al Ghurair is optimistic about Dubai’s economic outlook, pointing to its strong infrastructure, business-friendly environment, and expected interest rate reductions as catalysts for growth.

Al Ghurair downplayed concerns over recent interest rate increases, suggesting they would be temporary and eventually result in lower lending rates later in the year. He noted that despite higher rates (5-6%), Dubai remains competitive compared to many countries, encouraging the growth of robust companies independent of easy credit. He anticipates a 5% increase in foreign trade, supported by significant partnerships, and emphasizes the vital role of DP World’s ports in facilitating regional exports and re-exports.

Looking back at 2023, Al Ghurair praised the remarkable 22% increase in new business licenses, reaching a record high, and highlighted the attraction of large companies to Dubai’s extensive infrastructure. He also underscored the growing significance of the digital economy, with ambitions for it to contribute 20% to the economy by 2031.

Damian Hitchen, CEO of Saxo Bank in the MENA region, predicts over 5.5% growth for the UAE, driven by technology and renewable energy investments. He highlights the country’s strategic location, business-friendly climate, and progressive policies, which attract global investors and businesses.

Hitchen praised the UAE’s successful diversification away from oil, highlighting investments in tourism, technology, renewables, and financial services. Initiatives like the Golden Visa and free zones attract talent and companies, contributing to economic diversification. He also anticipates a sustained recovery in the Gulf Arab states, projecting growth of 2.5% in 2023 and 3.2% in 2024 for the Arabian Gulf region, driven by diversification efforts, increased government spending, and infrastructure projects. 

However, he noted global challenges such as supply chain disruptions and inflationary pressures, emphasizing the need to adapt to changing conditions and seize emerging opportunities.

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