Dubai's economy will continue to grow in 2012 despite persistent contraction in its once rapidly-booming construction sector, thanks to healthy trade and tourism, an official and economists said Wednesday, February 15, AFP reported.

Growth in the gross domestic product of the debt-laden emirate is "expected to be over 4.5 percent this year," said Sheikh Ahmed bin Saeed Al-Maktoum, the head of the Dubai Economic Sector Committee. The forecast by Dubai's Department of Economic Development (DED) is also around 4.1 percent for 2012.

This is a "respectable rate" driven by over six percent growth in tourism, and similar rates in trade and manufacturing, in addition to transport, said DED chief economist Mohammad Lahouel. The growth will continue "despite a continued decline in construction," he said at the Dubai Economic Outlook 2012 forum.

According to Standard Chartered's Marios Maratheftis, "The fundamentals of Dubai are pretty healthy and strong. Construction will continue to be negative, but I think it is good news because focus is shifting towards productive sectors," he said. "It shouldn't be about the rate of growth but about the quality of growth," he added, highlighting that the retail sector "is doing well, if not booming" while hospitality is also doing very well.

Dubai's economy contracted in 2009 after being hit by the global financial crisis which dried out international finance and brought its property sector - which grew at break-neck speed over five years - to a shrieking halt, shedding around 60 percent of its value so far.

But the economy picked up pace, banking on its developed tourism and retail sectors, as well its traditional trade sector.