2023-05-22 21:24:03
Standard & Poor’s expects real GDP growth for Dubai in 2023 to be about 3%, and for the growth rate to stabilize at about 3% in the next two to three years. It also expected that structural and social reforms and programs at the UAE level would support long-term growth.
The global agency expected that the government debt burden of the Dubai government will decrease to about 51% of GDP in 2023, down from its cyclical high of 78% in 2020.
She explained that the growth of Dubai’s diversified economy relatively well this year will be more reflective of the regular economic activity in the emirate, compared to the years of recovery after the pandemic, pointing out that the strong momentum is expected to continue in the sectors of hospitality, real estate, trade and financial services.
The agency’s figures on Dubai’s debt reduction reflect the strength of the financial situation in Dubai, and the success of the government’s strategy in achieving the highest levels of financial efficiency, especially since this achievement was achieved at a time when the government boosted its spending on the social, economic and development sectors. This decrease also contradicts the international trend, as the debts of governments around the world are witnessing a significant growth that threatens their future development plans.
Standard & Poor’s indicated that Dubai received 14.4 million international visitors in 2022, narrowing the gap with 16.7 million visitors in 2019, and the strong performance continued this year, as it received 4.7 million international visitors in the first quarter, compared to about 4.8 million in the first quarter. Same as in 2019, and hotel occupancy averaged 81% in the first quarter of 2023, according to data from the Department of Economy and Tourism, which is a high level, given the increase in the supply of rooms in recent years.
She indicated that the real estate sector expanded strongly in 2022, and residential real estate transactions rose 45% in terms of volume, and 77% in terms of value, to 528 billion dirhams, pointing to the steadfastness of demand in the face of global economic pressures.
Standard & Poor’s: 3% expected growth for Dubai’s economy in 2023
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