Dubai's economy expanded by 2.8 percent in real terms last year, faster than previously expected, as growth in trade and the retail sector helped it recover from its contraction in 2009, preliminary data showed on Sunday. One of the seven United Arab Emirates, the OPEC producer's trade and business hub was hit last year by the $25 billion debt restructuring of Dubai World.
The emirate, which accounts for 28 percent of the UAE's economy, previously estimated its gross domestic product rose 2.4 percent in 2010, according to a prospectus for the government's updated bond issuance programme in June.
Dubai's economic output shrank by 2.4 percent in 2009 after the global financial crisis burst its property bubble, freezing projects worth tens of billions of dollars.
In 2010 Dubai's real GDP rose to 293.6 billion dirhams ($79.9 billion) after a downwardly revised 285.7 billion in the previous year, data from the Dubai Statistics Center showed. It previously reported output of 286.6 billion dirhams for 2009.
"We definitely see GDP growth going up (this year)," said Philippe Dauba-Pantanacce, senior MENA economist at Standard Chartered.
"Dubai has benefited from the safe haven effect and from a diversion of investments and growing tourism from neighbouring countries affected by the crisis (unrest)," he said.
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