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Wed 30 Mar 2011 12:19 PM

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Dubai economy may grow 6% in 2012: Citibank

Foreign investment and infrastructure spend to spur growth, says chief economist

Dubai economy may grow 6% in 2012: Citibank
Dubai’s economy may grow 3.5 percent to 4 percent this year and 6 percent in 2012, said Citibanks Farouk Soussa

Dubai’s economy may grow 3.5 percent to 4 percent this year
and 6 percent in 2012, spurred by infrastructure spending and foreign
investment, according to Farouk Soussa, Citigroup’s chief Middle East
economist.

The emirate is “blessed by prime location” and there’s “real
appetite” for investing there, he said at a conference today. Infrastructure
development, foreign investment and geographical location are driving growth,
he said.

Dubai’s economy, the second-biggest of seven that make up
the United Arab Emirates, is recovering from the credit crisis, helped by a
revival in trade and tourism. Real gross domestic product grew 2.2 percent in
2010, the statistics bureau said on its website March 21.

Growth is likely to accelerate to four percent this year,
Standard Chartered said in December.

While Dubai will see its recovery gain “traction” this year,
it needs more counter-cyclical fiscal policies, according to Marios
Maratheftis, a Standard Chartered economist based there.

“Dubai should consider some kinds of taxation,” he said. It
needs “more sources of revenues.”

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