Figures posted by the National Bank of Kuwait (NBK) show that the UAE’s real GDP grew by 4.6% in 2011. The Kuwait bank said it expects record low inflation will spur further economic growth in 2012 as the UAE’s major business hubs like Dubai and Abu Dhabi become more cost-competitive.
The Oxford Business Group is also confident of the UAE’s strong economic performance in 2012. Their report stated “Indeed, despite the concerns over the global economy, Dubai appears to be looking at the New Year with confidence, with the government set to step up investments aimed at bolstering growth,”
The report continues by predicting a considerable fall in the UAE’s deficit which is expected to shrink by 50% compared with 2011. “This strong turnaround from the higher deficits of the past few years since the 2008 global economic crisis should further restore investor sentiment and encourage growth,”
The improved sentiment has been clearly visible in Dubai’s property market where 2011 saw a 20% increase in transactions spurred by lower prices. But despite low prices unit prices, $38.9 billion was invested into Dubai property in 2011.
Director General of the Dubai Land Department, Sultan Butti bin Mejrin said “quantity, quality and procedures reflect the recovery and growth of the real estate market in Dubai”, adding he expects “strong recovery” in 2012.
Source: Emirates 24/7 and Arabian Business