UAE: Dubai

With food security becoming an increasingly important issue globally, and in the arid Middle East in particular, Dubai appears to have positioned itself to play an important role in meeting the most basic needs of the region, having emerged as a major processing and food re-exporting centre.

The local economy appears set to sustain its recent upward momentum, as investor confidence returns and some core sectors rebound. However, there are still concerns that weak performance of key trading partners and tight liquidity could hold back expansion.

Working to strengthen its reputation as a shipbuilding and maritime centre, Dubai is looking to leverage its location astride one of the busiest shipping lanes in the world and the growing need for local and regional maritime support to develop a major shipbuilding and maintenance industry.

A major software developer’s plans to open a training centre in Dubai look set to strengthen the emirate’s bid to become a regional information technology (IT) centre, although growth in the sector could be hindered by the constraints start-ups face in finding financing.

The aviation industry appears set to face increasing challenges over the next six months as airlines face lower than expected profits as a result of high fuel costs. However, with Dubai continuing to expand its airport capacity, the emirate is looking to position itself to take advantage of growth markets in South-east Asia.

The emirate’s banking sector is still working to shake off the lingering effects of the global financial crisis, with lenders having to make higher provisions for debts than some of their neighbours who were less encumbered when the global economy went into decline.