According to the statement from the government of Dubai, the emirate has shown record economic growth in 2021 atabout 3.1%. The main factors that influenced this are the government measures to combat the pandemic, adaptability to change and the mass vaccination rollout in the UAE. The effective strategy in the fight against COVID-19 has contributed to the opening of borders and an increase in the flow of tourists. The economic growth in 2022 is estimated at a level of 3.4%. Moreover, Emirates NBD stated that the growth of the emirate of Dubai will be at a level 4% this year, while the GDP growth of the whole UAE constitutes 1.9%.
The government of the emirate adopted several amendments and new legislation to the investment and residence laws in order to attract more local and foreign investments to the country. For example, one of the new amendments was lowering the price threshold for the purchase of real estate so buyers can obtain a 3-year resident visa. Previously, in order to obtain this type of visa, an investor had to purchase property for the minimum amount of AED 1M (USD 272K), now it is enough to invest at least AED 750K (USD 204K).
The forecast from the DED also stated that they anticipated a positive impact of the Expo 2020 exhibition
on economic activities in the emirate. It is expected that the accommodation and food services sector will grow by 8.5% in 2021, compared to 2020, and the sectors of storage, transport and communications will grow by 4.1%. These indicators reflect the gradual recovery, which is expected until the end of 2021 in transport and tourism activities. According to the predication’s, the wholesale and retail trade sector will regain a large part of its activity after the slowdown because of the pandemic. Their growth is expected to be at a level 4.7% in 2021.
The real estate sector is also showing good results this year. For example, the growth rate in the 1st quarter of 2021 was 2.4%, compared to the same period in 2020, contributing to 8.7% of the real GDP. The number of purchase and sale transactions in the Dubai property sector has also increased, which indicates the stability of this sphere and the ability to respond to economic changes. For the 3rd quarter of 2021, the largest number of real estate transactions were made since 2009. In the period from July to September 2021, the total number of property sales increased by 85% compared to the same period in 2020. Buying a property in Dubai is one of the best ways to invest in the emirate. The main reasons for investing in Dubai real estate
are a wide selection of real estate, favorable prices, tenant benefits, a large influx of tourists and so on.