Services remain the key focus for Dubai in its efforts to build economic momentum, supported by a move to streamline interaction with the authorities through the use of digital tools, a report said.

Dubai’s push to broaden its tourism offering as Expo 2020 draws closer is evident, providing myriad opportunities for investors in hospitality and related infrastructure, explained The Report: Dubai 2015, published by global publishing, research and consultancy firm Oxford Business Group.

While Dubai’s recovery from the 2009 crash is well on track, the emirate’s to raise finance are also gathering pace, with a growing role earmarked for the Islamic segment, the report said.

Five keys to what’s next for Dubai:

1) Upgrade boost: The year 2014 brought several positive developments across Dubai’s financial services industry, led by index provider MSCI’s decision to upgrade the UAE from frontier to emerging market status. Its newfound status has already boosted liquidity levels, while a more attractive trading platform is expected to generate new interest among companies considering listing. Analysts believe the upgrade will be instrumental in helping the UAE compete for firms outside of the emirates. Dubai also held an equity capital raising in 2014, marking the emirate’s first offering for five years.

2) Initial Public Offerings: A raft of projects planned for Expo 2020 could see an IPO pipeline launched in Dubai sooner rather than later, although other issues, such as flexibility in revised listing rules and buoyancy in prices on the stock markets will also play a part in determining the timeframe for rollout. The government’s policy priorities of strengthening Dubai’s position as an Islamic financial hub and continuing its infrastructure drive should bode well for both equities and sukuk.

3) Building blocks: Cautious but solid, the recovery under way in Dubai’s construction industry has been well received by analysts. The sector’s contribution to GDP in 2013 reached 8 per cent which, while well below 2008’s 14 per cent, suggests the emirate is unlikely to witness a repeat of the overreach that led to the 2009 property crash. A wave of tender awards, alongside figures indicating that loans to construction firms rose by 40 per cent in December 2013 - their biggest increase since June 2009 – signalled higher levels of confidence.

4) Eyeing collaboration: The construction industry is likely to be one of the early beneficiaries of Dubai’s plans to introduce a public-private partnership (PPP) model, bolstered by the government’s strategy of getting its projects online. The emirate will be looking to PPPs to attract expertise and capital for big ticket ventures, particularly residential and mixed-use developments. Legislation for introducing PPPs is currently being drafted and, if introduced, will mark only the second such model in place across the Gulf.

5) Eco mission: Having made a pledge last year to acquire the title of the world’s green economy capital, Dubai has put energy saving high on its agenda. Reducing consumption 30 per cent by 2030 is a key target of the Dubai Integrated Energy Strategy (DIES) with plans to make smart use of electricity and water set to lead the way. The newly-formed Dubai Energy Agency (DEA) will champion efficiency by advising government, industry and consumers. – TradeArabia News Service