The economic rebound of Dubai after its recent slump can largely be attributed to the fiscal policies and monetary stimulus provided by the federal authorities of the United Arab Emirates, of which Dubai is a member-state. At the same time, the resilience of its major trade partners, India and China, has also helped, says a report.
The report, `Dubai Economy 2012', released by the Dubai Economic Council (DEC), said the UAE city has recorded steady growth over the past two years, with an increase in growth rate from 2.8 per cent in 2010 to 3.4 per cent in 2011. This is against a 2.4 per cent contraction in GDP growth in 2009.
By early 2010, barring the real estate and construction segment, most of other sectors of Dubai rebounded quickly.
Forward looking policies such as promotion of free trade, open skies and the setting up of free trade zones for attracting foreign direct investment played a key role in the Dubai administration realising its economic objectives, the report said.
Trading activities, both foreign and domestic, continued to be the backbone of the economy and was its major source of income, it said.