An increase of 5.3 per cent of the real gross domestic product (GDP) of Dubai over the fourth quarter of 2011 reflects the outcome of the growth of construction and manufacturing. In addition to transport and storage, wholesale and retail trade, real estate, and the financial sector which altogether contributed to the 90 per cent of the Dubai’s GDP according to the recent report from Dubai Economic Council.
Real estate has noted a strong growth during the fourth quarter of 2012 by about 94 percent compared to the corresponding quarter of 2011 which also highlighted an increase to around 3 per cent on the average price per square meter for apartments during the same period. A report on macro-economic front also noted a growth in domestic liquidity by 2 percent whilst a decline in the consumer price index during the fourth quarter of 2012 by 0.14 percent. The public spending rationalization has influenced to the fell in the government’s budget to less than $2 billion (Dh7.35 billion) in 2012.
On the tourism sector, last year’s report indicated an unprecedented growth by 7 percent in terms to number of guests in hotel establishments compared to the summer of 2011. In addition, the number of hotel rooms has increased up to 80,000 units and the number of tourists has exceeded 10 million for the first time in the emirate. An increase of 3.77 nights for the average length of stay in Dubai hotels was revealed in the report. The result of high occupancy rate of 83 percent in 2012 compared to 79 percent in the same quarter of 2011.
A remarkable growth in Dubai’s foreign trade during the fourth quarter of 2012 showed an imports totaled Dh186 billion compared to Dh117 billion of imports. The total trade of Dh1.234 trillion of the fourth quarter of 2012 is being compared with Dh 1.089 trillion of the same period of 2011.
Free Zones have contributed a 32 per cent of Dubai’s total trade with total exports and imports of Dh95 billion during the fourth quarter of 2012. According to DEC’s report, banking and financial sectors marked an increase deposits and loans in the banks in Dubai. The merging of Emirates Islamic Bank and Dubai Bank has attracted depositors.
The high level of demand for investment and the return of economic and commercial activity in the emirate would continue to trend.