Dubai economy likely to grow by around 5 percent this year: Al Ghurair

Al Ghurair anticipated that lower interest rates later this year would help boost borrowing by companies
Dubai economy likely to grow by around 5 percent this year: Al Ghurair
Al Ghurair speaks on the sidelines of the annual Dubai Chambers meeting

Dubai’s economy would grow by around 5 percent this year, Abdul Aziz Abdulla Al Ghurair, Chairman of Dubai Chambers, said on Thursday.

Dubai’s robust infrastructure, an appealing business environment, and an expected decrease in interest rates starting in the middle of the year are likely to push growth, he added.

On the sidelines of the annual media briefing organised by Dubai Chambers, Al Ghurair said that the recent increase in interest rates would be reversed soon. This would lead to a decline in lending rates. He highlighted that high interest rates, reaching up to 5 or 6 percent, are still lower than in many countries. This has supported the establishment of strong companies not reliant on cheap liquidity and borrowing solely due to low interest rates.

Read: Over 67,000 new companies join Dubai Chamber of Commerce in 2023

Foreign trade to surge

Al Ghurair emphasised that past achievements support growth trends and create a conducive work environment for the present and future. He expected Dubai’s foreign trade to grow by over 5 percent, backed by the large-scale partnerships being formed.

He stressed the pivotal role of DP World’s ports in facilitating exports and re-exports.

Reflecting on Dubai Chamber’s performance in 2023, Al Ghurair highlighted a significant increase in new licences issued. New licences grew over 22 percent compared to the previous year.

He also discussed the substantial growth in the establishment of large companies in Dubai, attributing it to the emirate’s infrastructure and integrated environment. The emirate has been successful in attracting various companies, including local businesses, major global corporations, and small and medium-sized enterprises.

Al Ghurair also mentioned a notable increase in the establishment of digital companies. He said the digital economy is likely to contribute over 20 percent to Dubai’s economy by 2031.

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