• 17.6% increase in the first five months of 2011 compared
to AED 85 billion in 2010
• 26% growth in May exports of AED 22 billion which is the
highest monthly percentage increase in the last three years
vulnerability of UAE consumers to rising food prices, the
global economic outlook’s effect on Dubai along with
endogenous growth factors and new business indicators
developed by the Chamber
Dubai, UAE: HE Abdul Rahman Saif Al Ghurair, Chairman,
Dubai Chamber of Commerce and Industry, revealed the latest
Chamber members’ export and re-exports data for the first five
months of 2011 which reached AED 100 billion. This is a 17.6%
increase compared to AED 85 billion registered for the same
period in 2010, he said.
This is extremely positive news for Dubai’s economy, said Al
Ghurair while presiding over the 2nd Economic Seminar of the
year held at the Chamber premises on Wednesday. He also
disclosed the May 2011 figures of AED 22 billion which is the
highest monthly total during the past three years with a 26
percentage increase in comparison to the same period in 2010
which he said came on the back of months of positive growth.
“In the first quarter, the members’ exports and re-exports
increased by 15.6% while in April 2011 alone, the figures show
a 14% increase compared to April 2010. Overall, these figures
are a strong indication that Dubai is on track to attain its forecast
economic growth of 3.5 to 5% for this year,” added Al Ghurair.
The seminar, which was attended by Chamber members and
representatives of the private sector, discussed the vulnerability
of UAE consumers to rising food prices by income group, the
global economic outlook’s effect on Dubai and endogenous
growth factors, and new business indicators.
The Chairman of Dubai Chamber further stressed that the second
quarter of 2011 was a fitting time to come together and discuss
major issues affecting businesses today adding that 49% new
members joined the Chamber in the first five months of the year
in comparison to the same period in 2010.
He also said that the city’s business environment continues to
thrive with lower rents, a recovery in the banking sector and
continued reform measures helping to boost investor confidence.
Al Ghurair maintained that the first half of this year has seen
sustainable growth across Dubai’s trade, tourism and logistics
sectors, which has helped to boost the economy. This comes in
spite of subdued global performance and proves that Dubai’s
economy is robust and back on the path to prosperity.
The Dubai Chamber-organised economic seminar with its
agenda of providing the latest economic indicators based on
studies, keep the business community updated with the latest
developments and trends and help them make sound business
decisions while enhancing their competitiveness globally.
On the topic of vulnerability of UAE consumers to rising food
prices, the first presentation cited the Chamber developed metric
of vulnerability that measures the loss in consumer purchasing
power when food prices rise. The metric allows for interactions
between food commodities and purchasing power by income
The survey found that, although UAE households in the lowest
20% income bracket spend on food less than a quarter of what
households in the upper 20% spend, the poorest household is
3.5 times more vulnerable to rising prices of food imports than
the richest households.
The second presentation on the global economic outlook’s
effect on Dubai and endogenous growth factors reviewed global
economic developments and how they will affect the UAE’s
outlook. In addition to rising oil export revenues, the UAE
benefits from a range of exogenous factors.
It further stressed that Dubai has a well-established reputation
as an entrepôt, and much of its trade is with emerging
markets, which are growing considerably faster than developed
economies. Meanwhile, regional turbulence in the Middle
East’s North Africa region has caused an influx of tourists and
businessmen into Dubai. Together, these trends are contributing
to strong demand for Dubai’s services.
The presentation also revealed the level of bank lending, which is
slowly recovering after liquidity has been restored as authorities
make substantial changes, will further improve the operational
environment for businesses. Numerous reform measures are
underway to strengthen regulations and improve conditions for
foreign investment. Dubai Chamber is active in communicating
relevant commercial concerns to government bodies and working
towards solutions in an expedient manner.
The cumulative effect of outside and domestic factors on
the economy, combined with ongoing business environment
improvements, is strongly positive. Dubai and the UAE are
expected to expand at a strong pace, significantly outpacing
OECD growth rates.
The third presentation highlighted the importance of reliable
and timely information as empowering tools in business decision
making in light of the Chamber’s Data Management Centre that
provides current and longitudinal information and indicators for
Dubai and the UAE, and for other countries as well.
In support of its members, the Center has started systems
for generating regular indicators for the business community
of Dubai, to include indicators of price movements of basic
consumer goods, of construction materials, and of commercial
and industrial machineries. These indicator systems can be used
for analysing price movements of specific products as well as
doing business across geographic boundaries.