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Dubai’s population to fall 3.6 percent

Economy will also contract by 0.4 percent in 2010, according to Shuaa Capital.


January 18, 2010 12:01 by

Dubai is expected to see a population decline of 3.6 percent this year, and its economy contract by 0.4 percent, according to a report published by financial services company Shuaa Capital. “The key construction and real estate sector continues to be a drag on growth in the emirate,” Mahdi Mattar, head of Research and chief economist at Shuaa Capital said in the report.

However, the UAE Vision 2010 report expects GDP growth in the UAE to reach 2.5 percent in 2010, up from -3.5 percent last year. “This growth will largely be driven by strong projected real GDP growth of 4.1 percent in Abu Dhabi. The capital will benefit from a recovery in oil prices and output this year, as well as strong growth in the non-hydrocarbon sector, which will be supported by government investment and spending,” Mattar said.

The report also expects the UAE markets to record gains of around 20 to 25 percent in 2010.


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