Dubai’s GDP grew 5.3% in Q4 of 2012

The real gross domestic product (GDP) of Dubai during the fourth quarter of 2012 increased by 5.3 per cent relative to the fourth quarter of 2011. This growth reflects the outcome of the growth of the two key sectors in Dubai: construction and manufacturing, in addition to transport and storage, wholesale and retail trade, real estate, and the financial sector, which altogether contributed to about 90 per cent of Dubai's GDP, said a recent report from Dubai Economic Council. On the macro-economic front, the report noted a decline in the consumer price index during the Fourth quarter of 2012 by 0.14 per cent while the growth in domestic liquidity was 2 per cent. The government budget deficit fell to less than US$2 billion (Dh7.35 billion) in 2012 as a result of the public spending rationalisation. Real estate witnessed significant growth during the fourth quarter of 2012 by about 94 per cent compared to the corresponding quarter of 2011. The average price per square meter for apartments has increased to around 3 per cent compared to the corresponding 2011 quarter. The report said last year witnessed an unprecedented growth in the tourism sector. The number of guests in hotel establishments increased by 7 per cent compared to the summer of 2011. Tourism activities have contributed in attracting hundreds of thousands of visitors from outside of Dubai and the state. According to the report, the number of hotel rooms increased up to 80,000 rooms. The number of tourists has exceeded 10 million for the first time in the emirate. The average length of stay in Dubai hotels has increased by 3.77 nights, the result of the high occupancy rate saw an 83 per cent increase compared to 79 per cent in the corresponding quarter of 2011. Dubai's foreign trade during the fourth quarter of 2012 has also witnessed a remarkable growth, as Imports totalled Dh186 billion compared to Dh117 billion of exports. The total trade at the end of 2012 was about Dh1.234 trillion, compared with Dh1.089 trillion at the end of 2011. Free Zones continued to play a major role in the emirate's trade, with total exports and imports of these areas during the Fourth quarter of 2012 about Dh95 billion, equivalent to 32 per cent of Dubai's total trade. The DEC report said the banking sector and financial markets continued to increase deposits and loans in the banks of Dubai. The merger of Emirates Islamic Bank and Dubai Bank has increased the ability to attract deposits. These trends would continue in light of the high level of demand for investment and the return of economic and commercial activity in the emirate. From Gulf News