Dubai economy to grow 5% in 2014-15: BofA

Dubai’s economic recovery is well entrenched and gaining pace with 2014-15 GDP growth expected to accelerate towards 5 per cent, according to the Bank of America-Merrill Lynch note released on Thursday.

“(Dubai) recovery is helped by high oil prices, support from the external sector, accommodative monetary policy, the rebound in the real estate sector, steady yet uneven progress on GRE restructuring and a mild fiscal consolidation drive. The 2020 Expo win further provides upside growth potential,” BofA analyst Jean-Michel Saliba said.

“After averaging 10 per cent annual growth from 2000-10 and a slump in 2009, real GDP growth was 4.6 per cent in 2013. Dubai’s externally driven sectors (tourism, manufacturing) led the increase. With a fading drag from construction and real estate activity, growth is likely to accelerate toward 5 per cent in 2014/15, in our view,” she added.

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