DUBAI: Dubai’s economy grew 1.94 percent in 2018, the government said yesterday, hitting its slowest pace since a contraction in 2009 when the economy was hobbled by a debt crisis.
Dubai, which has a diversified economy that focuses on tourism and international business services, has been hurt by a rough patch amid a downturn in its real estate market.
“A weakening external backdrop, a strong US dollar and the ongoing correction in the property market are headwinds for a number of vital sectors,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
The economy slowed from 3.1 percent growth in 2017, revised government data showed. The 2017 figure was revised from the previous growth figure of 2.8 percent.
Property prices in Dubai have fallen by more than a quarter from their peak in 2014. S&P said last month it expects prices to fall another 5-10 percent this year due to a continued gap between supply and demand, before steadying in 2020.
