Dubai poised for sustainable growth

Greater value in assets. Property sector correction boosts business opportunities. Real economic indicators improve. (EB FILE)

Dubai is now poised to achieve sustainable economic growth as fundamentals of real economic indicators have improved, a top official told Emirates Business.

Ahmed Humaid Al Tayer, Governor of DIFC, said there is now value in assets as correction in Dubai's property sector has created more business opportunities and better living conditions.

"Today because of this situation there is value in the asset," he said on the sidelines of the "India and the UAE" book launch. "For example, two years ago a villa was rented for Dh500,000; nobody could afford that and it pushed inflation high, but now it is more reasonable. It will attract businesses and businesses will become more profitable.

It is time for adjustment," he added.

With regards to other sectors, economic indicators show the economy is picking up, said Al Tayer, who is also chairman of Emirates NBD. "Some sectors such as tourism, imports, exports, aviation and transportation are doing well," he said.

Until the first half of 2009, Dubai had the most expensive rental prices in the region and was the 20th most expensive city in the world, according to Mercer. Industry estimates, however, show the demand slowdown, along with new supplies, has pushed rentals down by 20-40 per cent since last year.

Dubai Chamber said individuals and businesses see this as an opportunity to relocate as they can now purchase or rent units, which were beyond their financial means in 2008.

 

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