Dubai's GDP grew 5.9% to $27.8bln in Q1 2022

Originally published on Jun 27, 2022 | Zawya

Dubai's economy has posted a 6.2% growth in its GDP in 2021. The emirate's GDP also rose 5.9% to AED 102 billion ($27.8 billion) in Q1 2022, supported by strategic initiatives and economic stimulus programmes.

"The growth demonstrates the emirate's strong economic fundamentals and ability to maintain sustainable growth," Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman on Dubai Executive Council tweeted.

"We are poised to enter a new phase of our economic development, which will focus mainly on the knowledge-based economy," he said.

The GDP numbers were announced at The Executive Council meeting held on Thursday at the Mohammed Bin Rashid Library.

According to Sheikh Hamdan, the government’s attractive fiscal measures directly helped to stimulate economic growth in Dubai. The success of Expo 2020 Dubai was an important factor in driving a post-pandemic tourism boom, leading to increased air and sea traffic and record foreign trade.

The UAE central bank had launched a Targeted Economic Support Scheme (TESS) to help various banks provide temporary relief to companies and individuals affected by the crisis and boost lending capacity through the relief of existing capital and liquidity buffers.

Several measures of TESS have been extended until June 30 to support the continued recovery of the country's economy.

Global professional services firm Alvarez & Marsal had said that the UAE’s top banks benefitted from better margins in the first quarter of 2022, but there is a risk of deterioration of asset quality in Q2 2022 as the TESS, which was rolled out in March 2020 is coming to an end by mid-2022.