Dubai’s economy to grow 3.4% in 2024, Fitch Ratings says

Fitch Ratings predicted that Dubai will achieve 3.4% economic growth next year, as several positive factors are expected to combine and stimulate both private consumption and investment in Dubai.

“The transportation, warehousing, wholesale, retail trade, real estate, financial services, tourism, and related sectors are expected to remain the main drivers of Dubai’s economy during the remaining few months of this year,” according to the Fitch Ratings report.

Over the next year, these sectors will be responsible for Dubai achieving GDP growth of an expected 3.4% in 2024.

“Several positive factors are expected to combine and lead to stimulating both private consumption and investment in Dubai in 2024, which in turn will enhance the growth of the emirate’s economy during the same year,” Fitch Ratings said.

“The most prominent of these factors is the decline in inflationary pressures, the slight rise in oil prices, and the easing of monetary tightening policies pursued by various world economies, including the economies of the region, for a period of about two years,” Fitch Ratings added.

The report pointed out that Dubai’s economy recorded an annual growth of 3.2% during the first half compared to the same period last year, while the emirate’s economy is expected to register an annual growth of 3.6% in the third quarter of the year compared to the third quarter of last year, reflecting the accelerated nature of Dubai’s economic growth at the moment.