Inflation
Inflation is a serious concern with any growing economy.
In Dubai years of strong economic growth have been accompanied by rising inflation rates – inflation rose by over eleven percent in both 2007 and 2008.
This is partially due to a near doubling of commercial and residential rental costs, substantially increasing the cost of living for residents. The government has recently introduced a rent cap to combat this problem.
Predictably, the global recession has had a significant cooling effect on inflation.
Inflation for the year ending September 2008 was again in excess of 11%, the figure for the year ending September 2009 was around 3.5%, with further falls predicted.
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- Dubai scales down growth and records its first budget deficit
- The rise, fall and salvation of Dubai
- Sheikh Mohammed tells Dubai and Abu Dhabi doubters to shut up
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