Dubai's Economy Approaches Pre-Pandemic Levels, Notes Global Ratings Agency

Fitch Ratings reports that Dubai's economy has recovered approximately 98.0% of its pre-Covid-19 magnitude.

Dubai's economy has made significant progress in recovering its pre-pandemic size, driven by key strategic sectors. Fitch Ratings reveals that the emirate's economy has regained approximately 98.0% of its pre-Covid-19 magnitude. While Dubai's real GDP growth is expected to decelerate from 4.2% in 2022 to 3.4% in 2023 due to lower oil prices and higher borrowing costs, it will remain above the 2015-19 average of 3.1%.

Fitch believes that the rebound in key sectors, yet to fully recover from the pandemic, will support growth in 2023. Sectors such as wholesale and retail, transportation and storage, financial and insurance, manufacturing, real estate, construction, accommodation and food, and information and communication are projected to be the main contributors to Dubai's GDP. The transportation and storage sector is expected to benefit from global trade normalization and the recovery of Mainland China. The real estate sector will continue to contribute to growth, driven by population growth and residency schemes. The financial sector is anticipated to expand further through company listings and private equity activity.

News Source: Khaleej Times