The countries of the Persian Gulf will invest US $ 56 billion in tourism infrastructure by 2022, while the United Arab Emirates will become the leader in terms of investments, according to a study by the international consulting company Colliers International.
Transport infrastructure of the Gulf countries, in particular, will be transformed by such significant projects as the construction of the high-speed highway Hyperloop, the new airport in Saudi Arabia and the expansion of airports in the UAE, Bahrain, Oman and Kuwait.
It is noted that the Hyperloop One, which can accelerate to 1200 km/h, will transport 24 million people a year. In 2016, Dubai’s transport authorities announced plans to build a high-speed railway between Dubai and Abu Dhabi.
Investments in transport infrastructure will contribute to the development of inter-city highways, as well as the launch of new flights of low-cost airlines. Dubai also plans to actively develop cruise tourism and expand the sea passenger terminal in the port of Rashid, which today accepts already 18 thousand cruise tourists per day.
More about economy of the UAE for 2018
The report of the research institute Oxford Economics, which analyzes the dynamics of the economy of the Middle East of 2017-2018, shows that the UAE has the most favorable prospects for economic development among the countries of the region. This is due to the record for the region degree of diversification of the state economy – oil revenues are only 22% of the UAE export earnings.
According to official forecasts, the growth rate of the UAE economy in 2018 will rise to a level of 3.6%. According to analysts, the main driver of economic growth will be the positive dynamics of the construction industry, as well as hospitality tourism.
In their desire to escape from the model of the oil-dependent economy, the Arab Emirates pays special attention to the development of the tourism and hospitality industry. This strategy has great results – active financing of this sector by the government leads to a constant growth of the tourist flow, and, consequently, to the generation of a stable flow of profits from the part of visitors.
Speaking about the emirate of Dubai as a locomotive of UAE economic growth, it should be noted that the growth rate of the real estate market in the emirate in 2017 amounted to 4.3%.
Specialists of the rating agency Moody’s add that the confident growth of the real estate market plays a decisive role in supporting the economic development of the United Arab Emirates as a whole.