As the financial centre of the Gulf and the United Arab Emirates (UAE), it didn't take Dubai long to bounce back from the global financial turmoil. A steadily growing oil price and a strict policy of fiscal prudence soon saw the emirate climbing back to its original prominence.
Dubai's economic relationship with Hong Kong has long been healthy. In concert with the global economic recovery, Hong Kong's imports from Dubai increased by more than 37 per cent in the first 10 months of this year, to US$1.45 billion, while exports to the UAE also rose to reach US$1.6 billion in the same period.
After a less than stellar performance last year, the UAE as a whole is expected to see real GDP growth of 2.4 per cent this year, according to IMF estimates. With the oil and gas sector accounting for more than 35 per cent of the country's GDP, higher prices for both commodities is forecast to bolster the continued recovery.
The Global Competitiveness report 2010-2011 issued by the World Economic Forum ranked the UAE 25th in the world, with the UAE being included for the second year in the third and most advanced stage of 'innovation-driven economies', which includes the highest-ranking countries.
Foremost of the seven emirates that make up the UAE, Dubai and Abu Dhabi account for most of the country's GDP.
According to information from the government, last year the UAE's gross national product (GNP) amounted to 914.4 billion dirhams (HK$1.93 trillion) and is expected to cross the 1 trillion dirham mark by the end of this year. The two emirates differ in terms of economic development - Abu Dhabi, which owns the majority of the country's oil and gas reserves, focuses on energy-based industries, while Dubai is renowned for its commercial and financial services, and tourism, logistics and trading. Dubai's oil and gas sector plays a lesser part in its economy.
The UAE is planning to reduce the contribution from the oil and gas sector to about 20 per cent of its GDP, and diversify its economy by developing trading, financial and technological industries, and tourism.
