While 2018 has been a year of a mixed bag for most emerging markets, economies, etc, wherein the first half performance was a slow, yet steady operating profit due to which there was just a GDP growth of 1.5 percentage and which again surged to 2.2 percent within the end of the fiscal year 2018.
However as per a report from Emirate’s Department of Economic Development, “2019 is expected to bring on in some cheers for the second largest MEA (Middle East Arab) region economy Dubai, as most of the Dubai based firms expect a higher economic growth upfront during the start of 2019 itself. “
This positive market phase is as a result that there is a surge among the optimism of Dubai based firms which have grown to be at 60 percentage as they expect higher economic growth in 2019 due to strong government policies introduced the previous year.
Dubai’s overall economic condition will be spurred by
• Surge in the public-private sector credits due to the rise in public-private participation policies etc.
• According to the International Monetary Fund (IMF)-Washington based lending firm, “Inflation will continue to be at lower levels as a result of new VAT (Value Added Taxes) reforms introduced in 2018.
• This measure although was partly fruitful as despite the surge seen in Non-performing loans and its constant rise in its rates, it negated this adverse trend as it allowed Banks as well financial institutions to maintain a surplus pool of liquidity and thus remain in well capitalized.
• With the growing and successful PPP (Public-Private partnership) policy, other government marked initiatives, Dubai has sustained in the public spending on infrastructural and social development aids, to surge the business growth with the mission of attaining maximum revenues, profits thus welcoming the first half of new year with a bang.
• With the accelerated economic turnaround, all thanks to surging private sector credit as well boost up in inward investments expects more than 41 percent of Dubai firms out of which 34 percent firms hopes an overall stable economic growth worth 3.7 percent GDP rise in 2019-2023 up by 2.8 percent as observed in 2018. However, there is still six percent of firms who seek a decline in overall economic reforms and stunted GDP for the region in the year 2019-2023.
• UAE is blazing in all guns viz taking all practical measures to achieve better GDP growth this year which includes bundling out economic business machinery and reforms, offering long term visas to individuals like global business tycoons, young business, financial achievers.
• It is also attracting a massive pool of FDI and FDO’s (Foreign Direct Investments and ownerships) outside specific business platforms like oil and energy sector, the Manufacturing sector, Service sector and SEZ’s (Small and Medium Economic Zones).
• With the improved technology upgrades, 42 percent of Manufacturing sector as comparatively to 35 percent service firms and 27 percent trading sector, are confident to surge ahead in Generating constant increased revenues, profitability and market share values in IPO’s, fund generation, rise in output – input volume, attracting global investors and creating better purchasing-sales order generation.
UAE is thus optimistic on the performances of “services sector including achieving higher sales and returns, Hospitality segment involving travel, car rental, and sales volumes for Q1 quarter of 2019”. The trading sector is not lagging capitalizing on Personal Computers, and electronic techno gadgets demand surge from both in-house viz existing and Newer customer base.
Thus, these driving forces will support Dubai’s vision 2020-2030 to lead the emerging markets and be known as global economic leaders boosting its GDP to 3.8 percentage within 2023. It also is committed to protect the depleting oil and hydrocarbon reserves, keep a close watchful eye on the raising and steep hike in oil and natural reserves to sail through troubled times at par with ease.