Growth of 4.5 per cent predicted for Dubai

Dubai's economy should accelerate by 4.5 per cent this year, propelled by its key pillars of tourism and transport and sound management of its debt flows, a leading Dubai official said today.

GDP expansion will pick up from 3 per cent last year, said Sheikh Ahmed bin Saeed Al Maktoum, chairman of the Dubai Economic Sector Committee.

"Despite all of the challenges we have faced in the year 2009 and the start of 2010 we have succeeded in encouraging the economy and promoting economic sectors," he said at an event in Dubai.

Tourism and the travel sector accounted for more than 60 per cent of the economy. The financial sector had also maintained its value to the economy, despite the challenges its faced.

The emirate would also continue to support state-linked firms, he said. Dubai had made progress in meeting its debt obligations, he said.

"The Dubai Government has taken policies that have reduced our debt and put controls on our debt management," he said.

The emirate would increase the size of the Dubai Financial Support Fund, the specially created fund to support state-linked firms, if required, he said. But Sheikh Ahmed said he was "pleased with the way business was going."

tarnold@thenational.ae