Construction, real estate boost Dubai GDP in 2017
Dubai's construction sector grew by 3.5% in 2017, government report reveals
Construction growth and real estate sales contributed to an upswing in Dubai’s gross domestic product (GDP) last year, according to a government report.
The emirate’s construction sector grew by 3.5%, while real estate deals climbed 7.3% in 2017, Department of Economic Development’s (DED) Dubai Economic Report 2018 revealed.
The document looked at how growth in tourism, construction, property sales, and manufacturing helped to fuel the emirate’s non-oil growth between 2016 and 2017.
The 3.5% increase in construction is particularly impressive, as the sector was hit with a 3.4% decline in 2016. However, its growth means that construction’s contribution to Dubai’s GDP increased to 6.3% last year, up marginally on the year before.
Real estate, which accounted for 7.1% of GDP in 2017, also supported the emirate's growth after transactions increased from $72.9bn (AED268bn) in 2016 to $77.3bn (AED284bn) in 2017.
Building work related to Expo 2020 Dubai, coupled with an “expansionary fiscal policy” that included a public infrastructure spending hike, contributed significantly to economic growth, the report said.
This helped Dubai’s 2017 GDP rise to $106bn (AED389.4bn), up by 2.8% compared to corresponding figures for 2016.
The UAE economy grew by 0.8% between 2016 and 2017.
The report has highlighted the importance of the emirate’s commitment to economic diversification, as the region continues to contend with the impact of lower oil prices.
HE Sami Al Qamzi, director general of DED, added that the “remarkable economic success” of Dubai was made possible by the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai.
Al Qamzi praised HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, and Chairman of the Executive Council, for helping to shape the sustainable development of Dubai.
Strategic initiatives that focused on smart city construction, innovation and strengthening the Islamic economy, as well as a rise in infrastructure spending, helped to sustain Dubai’s economic growth in 2017, Al Qamzi said.
“The initiatives launched by the Government of Dubai in April 2018 to accelerate business growth and improve the business environment have also helped to consolidate Dubai's leadership globally,” he added.