Dubai’s Economy to Grow by 5% in 2024

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Dubai Chambers mentioned a notable increase in the establishment of digital companies, aiming for the digital economy to contribute over 20 percent to Dubai’s economy by 2031….reports Asian Lite News

Abdul Aziz Abdulla Al Ghurair, Chairman of Dubai Chambers, predicted that Dubai’s economy would grow by around 5 percent this year. He mentioned that Dubai benefits from robust infrastructure, an appealing business environment, and an expected decrease in interest rates starting in the middle of the year.

On the sidelines of the annual media briefing organised by Dubai Chambers, Al Ghurair said that the recent increase in interest rates would be reversed soon, leading to a decline in lending rates. He highlighted that high interest rates, reaching up to 5 or 6 percent, are still lower than in many countries, supporting the establishment of strong companies not reliant on cheap liquidity and borrowing solely due to low interest rates.

Al Ghurair emphasised that past achievements support growth trends and create a conducive work environment for the present and future. He expected Dubai’s foreign trade to grow by over 5 percent, backed by the large-scale partnerships being formed.

He stressed the pivotal role of DP World’s ports in facilitating exports and re-exports across various regions, noting their global efficiency in providing logistical services to diverse companies.

Reflecting on Dubai Chamber’s performance in 2023, Al Ghurair highlighted a significant increase in new licences issued, marking a historic milestone with a rise of over 22 percent compared to the previous year.

He also discussed the substantial growth in the establishment of large companies in Dubai, attributing it to the emirate’s infrastructure and integrated environment, attracting various types of companies, including local businesses, major global corporations, small and medium-sized enterprises, and digital companies.

Al Ghurair mentioned a notable increase in the establishment of digital companies, aiming for the digital economy to contribute over 20 percent to Dubai’s economy by 2031.

Over 67K new members in Dubai Chambers

Dubai Chambers and the three chambers operating under its umbrella – Dubai Chamber of Commerce, Dubai International Chamber and Dubai Chamber of Digital Economy – have continued to make significant progress towards achieving their strategic priorities and unveiled an impressive set of results from 2023 that align closely with the objectives of the Dubai Economic Agenda (D33).

During the annual media briefing at Dubai Chambers’ headquarters, it was revealed that 67,222 new companies joined as members of Dubai Chamber of Commerce in 2023. This impressive figure is the highest number of new members during any year in the chamber’s history and represents year-over-year (YoY) growth of 20 percent.

The number of active members of Dubai Chamber of Commerce also grew by 26.8 percent compared to 2022 to reach a total of 217,788, while the value of members’ exports and re-exports increased to over AED 284 billion, with YoY growth of 4.3 percent.

Dubai International Chamber successfully attracted 138 overseas businesses to the emirate. These included 34 multinational companies (MNCs) – an increase of 580 percent compared to 2022 – and 104 small and medium-sized enterprises (SMEs), representing YoY growth of 550 percent. The chamber also supported the international expansion of 77 local companies, achieving a record annual growth rate of 756 percent, and increased its network of international representative offices to 31 with the launch of 16 new offices around the world in 2023.

Meanwhile, Dubai Chamber of Digital Economy continued to strengthen the emirate’s digital leadership by attracting nine MNCs operating in the digital industries to Dubai, together with 549 high-tech startups to achieve an annual growth rate of 916 percent.

The chamber also successfully hosted Expand North Star, established a new platform to support and attract businesses to Dubai, oversaw the launch of the ‘Create Apps in Dubai’ initiative, and published six insightful reports on the emirate’s digital economy.

The annual media briefing event featured an interactive media Q&A session with the participation of Abdul Aziz Abdulla Al Ghurair, Chairman of Dubai Chambers; Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications and Chairman of Dubai Chamber of Digital Economy; Sultan Ahmed bin Sulayem, Chairman of Dubai International Chamber; and Mohammad Ali Rashed Lootah, President and CEO of Dubai Chambers.

Dubai Chamber of Commerce issued 735,155 certificates of origin in 2023, while the number of member exporters achieved YoY growth of 9.1 percent to rise to 13,688. In addition, 5,492 ATA Carnets were issued and received for commodities with a combined value of AED 5 billion, representing a remarkable YoY growth in value of 47 percent.

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