In recent months much has been made of the GFC’s harsh effects on economic conditions in the Gulf, and on Dubai in particular. New reporting from The Economist and Bloomberg indicate that the Emirates are well and truly back on the path to growth. Growth reporting in the last quarter suggests that Dubai is on track to realise 4.1% GDP growth this year. This can readily be contrasted with the US and Australia which moved along at just under 1% each — and even more dramatically with the UK, which has likely dropped into a double dip recession.
While the GFC certainly knocked the Emirates back a step, particularly in respect of real estate development, Dubai’s diversified economy has proven more resilient than conventional wisdom has anticipated. Residential rents were up 17%, hotel occupancy is booming and the Dubai stock index is up 20% on the year.
While Dubai certainly seems to have put its troubled past behind it, there is some concern that Abu Dhabi would be loathe to provide a second bailout on the same scale as the $20 billion USD package offered in 2009 should the Dubai economy begin to overheat again.
If you would like to discuss how your company can capitalize on trade opportunities in the Gulf region, contact Dearin & Associates for a confidential discussion.