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A new report showed that the UAE economy was “back in business” with increased hydrocarbon output from Abu Dhabi pushing growth and non-oil indicators in Dubai looking more positive.
The latest Middle East focus economic report from Standard Chartered argued that the first-half of the year’s economic performance was driven by increased hydrocarbon output from Abu Dhabi and strong non-oil growth in Dubai.
Dubai's "economy is back in business," the report said, adding that "non-oil economic indicators in Dubai look positive, in line with our positive view on the emirate this year."
Figures compiled by the Dubai Chamber of Commerce and Industry show that exports and re-exports rose by 16.5 per cent in the first half of 2011. The emirate's tourism sector is also doing well, with hotel occupancy above 70 per cent in June (the off-season period in Dubai).
"These figures suggest that this year, Dubai's core strengths of trade and tourism will continue to benefit from the emirate's excellent infrastructure," the report added.
The bank put a Stable outlook on the UAE. "Abu Dhabi's strength as a credit is underpinned by its strong hydrocarbon dynamics. Although Dubai still faces some medium-term challenges and recovery will take time, it has been a clear beneficiary of the unrest in the wider MENA region," the report stated.