Gross domestic product in the United Arab Emirates will exceed 1 trillion dirhams ($272 billion) this year as liquidity returns and trade picks up, the head of the Dubai International Financial Center said.
“Most sectors of the economy are doing well and growing such as trade, transport and even finance,” Ahmed Humaid al Tayer told reporters today in Dubai. The DIFC, Dubai’s financial hub, hosts offices of banks such as Morgan Stanley and Deutsche Bank AG.
GDP was 914.3 billion dirhams last year, as the economy slowed after real estate prices plummeted and credit markets tightened. The outlook has improved as Dubai World, the state-owned holding company, makes progress on its $24.9 billion debt restructuring, according to the International Monetary Fund.
The IMF will raise its economic forecasts for the U.A.E. in its next review due in a few weeks, Masood Ahmed, its Middle East director, said on Sept. 16.
Al Tayer said Dubai’s financial industry “has witnessed vast improvement and seen better liquidity, above central bank requirements, despite high provisions.” When asked whether Dubai would need more government support he said: “We have overcome a lot of those stages.”
The Abu Dhabi government and the U.A.E. central bank provided Dubai with $20 billion after it first announced plans to restructure debt last year. The emirate borrowed $109 billion to transform itself into a tourism, transport and financial hub, according to current IMF estimates.