Dubai has long been thought of as the jewel of the United Arab Emirates, a place for investors of all types to make substantial profits from foreign investments, and a massive development in the property industry. However, with the current recession ending, what does 2010 hold for the Dubai economy?
The United Arab Emirates government has always been
hesitant in disclosing information about the current state of the economy with The UAE Minister for Economy, Sultan bin Saeed Al Mansouri, dismissing economists forecasts saying that it would be impossible to make an accurate forecast on the country’s economic growth this year amid the global meltdown.
The region has had immense growth in the last 3 years, with an annual GDP growth rate of 21.9 percent, spurred on by oil production and vast property development including the world archipelago. But with the recent global recession and the United Arab Emirate’s relationship with the US dollar it is hard to predict the future for the Dubai region.
Many investors are steering clear of the regions property, which has plummeted in recent months, in favour for financial investments into stocks and bonds offshore in European and British markets. Oil production continues to drive the UAE economy which has spurred its strong fiscal surplus achieved over the past five years.
The real picture is that the UAE is still a striving region in terms of an emerging country. With markets being developed and oil production continuing despite some of the lowest prices in the last 5 years, the overall position of the region seems promising in the long term; nevertheless, most UAE investors are heading offshore in the quest for higher returns on investments based on well informed decisions, not like in their homeland where any negative report of the Dubai economy can be heavily penalized by the government.


