DUBAI: Dubai’s economy is expected to bounce 4.0 percent next year as it recovers from a recession that struck in 2009 as a result of the global financial crisis, Standard Chartered bank said Sunday.
"We expect Dubai’s economy to grow by 4.0 percent in 2011," said the bank in its report "Global Focus – 2011 – The Year Ahead" which it released in Dubai.
The bank said that despite the crisis in its real estate sector, and the debt piled by government and quasi-government entities, Dubai has been recovering on the back of a growth in trade and hospitality.
"2010 saw a significant rebound in global trade; this, along with rapid growth in the retail and hospitality sectors, drove Dubai’s recovery, despite the challenges of a suppressed housing market and debt overhang," it said.
The report pointed out that Dubai is the world’s third-largest re-export centre, and that trade makes up 40 percent of its gross domestic product.
Dubai’s economy is forecast to grow between 1.5 percent and 2.0 percent this year, said Standard Chartered economist Shady Shaher at a press conference.
The bank report said, however, that global trade was unlikely to see the sharp rebound seen in 2010, adding that "re-exports and the logistics sector – of critical importance to Dubai – will be only moderately positive for growth."
The International Monetary Fund said in October that it expected Dubai economy to grow by a mere 0.5 percent in 2010 after it had contracted by 1.3 percent in 2009.
Home to the Middle East’s largest port, which is also the world’s sixth largest container terminal, Dubai has traditionally established itself as a regional trade hub.
During the boom years, it built a reputation as a tourist destination, constructing luxury hotels and sea resorts, including a seven-star hotel, and the world’s tallest tower.
