News & Reports News Year 2010 December , 2010 Economy of Dubai 45% growth in new firms in Dubai

Economy of Dubai 45% growth in new firms in Dubai

The number of new companies in Dubai witnessed an increase of 45 percent in the first nine months of this year compared with the same period last year according to Al Khaleej business report.

Hamad Buamim, Director General of Dubai Chamber of Commerce and Industry said the number of new companies stood at 11,007 compared with 7,566 companies in 2009. The statements of Buamim came during the inauguration of the Fourth Economic Forum, organised by the Chamber of Commerce and Industry on Wednesday.

Buamim pointed out that the value of exports and re-export of the members of the chamber increased by 21 percent in October 2010 in compared to October 2009.

Buamim stressed that the indicators of Dubai's economy were encouraging and positive as the performance of a number of economic sectors in Dubai this year, most notably trade, tourism and logistics services gave positive signs.

He noted said the trade sector was capable of facing challenges, and current conditions make the actions of traders very positive and convenient.

Buamim said there was a continuation of growth in the commercial sector in 2009 reached 39 percent of GDP, up from 38 percent in 2008.

“The movement of direct trade in Dubai grew by 18 percent between January to August 2010 compared with the same period of 2009 to reach to Dh377 billion, up Dh320bn in 2009,” said Buamim.

He added that exports increased by 39 percent, and imports by 14 percent, while re-exports rose by 20 percent, which is the highest in five years.

He pointed out that the global financial crisis reflected the importance of the sectors of trade and export, logistics and financial sectors as a catalyst key for the growth of Dubai's economy.

He added that these sectors are always the pillars of the emirate's economy particularly in the light of the retreat of the role of real estate.

He added that the country's economy has achieved positive growth during the past year despite the global financial crisis and is expected to rise to above 3 percent by the end of this year, in a clear sign of economic recovery and growth.

He said the contribution of non-oil sectors in GDP last year reached 71 percent, a figure reflecting the flexibility enjoyed by the country's economy and its ability to meet the challenges.