Dubai’s economy would grow by around 5% this year: Al Ghurair

Abdul Aziz Abdulla Al Ghurair, Chairman of Dubai Chambers, predicted that Dubai’s economy would grow by around 5 percent this year. He mentioned that Dubai benefits from robust infrastructure, an appealing business environment, and an expected decrease in interest rates starting in the middle of the year.

On the sidelines of the annual media briefing organised by Dubai Chambers, Al Ghurair told the Emirates News Agency (WAM) that the recent increase in interest rates would be reversed soon, leading 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, supporting the establishment of strong companies not reliant on cheap liquidity and borrowing solely due to low interest rates.

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 across various regions, noting their global efficiency in providing logistical services to diverse companies.

Reflecting on Dubai Chamber’s performance in 2023, Al Ghurair highlighted a significant increase in new licences issued, marking a historic milestone with a rise of 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, attracting various types of companies, including local businesses, major global corporations, small and medium-sized enterprises, and digital companies.

Al Ghurair mentioned a notable increase in the establishment of digital companies, aiming for the digital economy to contribute over 20 percent to Dubai’s economy by 2031.