UAE: Dubai

Long seen as a future powerhouse in the emirate’s diversified economy, Dubai’s aviation sector is starting to live up to expectations. Local carriers have been posting strong profits and expanding their network of routes, though the risk of turbulence remains.

With some of the region’s leading tourism destinations such as Egypt, Tunisia and Jordan still affected by domestic unrest, Dubai is offering a safe haven for foreign holiday makers keen on a Middle Eastern getaway. Arrival numbers are up, hotels are benefitting from nearly record-high occupancy rates and business tourism is on the rise as professionals seek quieter and safer places to do deals.

Having ridden out the global economic downturn, the IT industry looks set to continue its impressive expansion in Dubai, though it will have to deal with increased competition from within the region as well as further afield – especially Asia – as it seeks to attract new investors and clients.

A proposal to merge the operations of the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) appears to be gaining momentum, with stock market officials discussing a plan that could result in the creation of a powerful regional bourse better positioned to compete with nearby rivals and larger international operators.

Dubai’s construction sector is still dealing with the fallout of the global recession. Some segments are experiencing gathering momentum while others may have to look beyond 2011 before demand picks up and confidence returns.