Expo 2020 Dubai-related construction and infrastructure spending will help the UAE economy grow by 3.8% during the next five years, according to government analysis.
Dubai Chamber of Commerce and Industry is forecasting single-digit gross domestic product (GDP) growth for the UAE between 2019 and 2023 – and construction will be a force for economic expansion during this period.
Alongside infrastructure and building investment for Expo 2020 Dubai, transport and communications, real estate, and an expansionary fiscal policy will keep the country’s GDP on the rise, according to the government’s macroeconomic model.
GDP growth in the UAE’s burgeoning non-oil sector is forecasted to increase by 4.1% during the next five years. This is higher than the 2.8% rise noted between 2014 and 2018.
Construction, a lynchpin of the UAE’s economy, is set to record GDP growth of 4.2%, with real estate business services braced for a 3.8% hike during the next five years.
The UAE’s transport and communications industry will see the largest increase in GDP, with a 7.9% surge.
Construction-supported economic growth is anticipated as Dubai's budget for 2019 features $2.5bn (AED9.2bn) for infrastructure modernisation.
Recent economic and legislative reforms in the UAE, such as those that improve the cost of doing business, will help to keep the country’s economic growth on track as well.