Dubai's economy is set to rebound strongly next year, expanding 3.2%, on the back of a series of economic stimulus measures introduced last year. "Projected short-to-medium term economic activity in Dubai indicates a real GDP growth of 2.1% this year, 3.2% in 2020 and 3.0% in 2021," Sheikh Hamdan said in a statement issued by the Dubai government. Dubai's economic growth slowed to 1.7% last year, but picked up to grow 2.2% in the second half, following the introduction of stimulus measures by both the federal and the emirate's governments. The federal government issued long-term residency visas to attract innovators and entrepreneurs, whereas the Dubai government cut municipality fees applied to certain commercial entities to 2.5% from 5%, as well as waiving aviation sector-related fees. "Major policy initiatives were introduced and contributed to bolstering domestic demand, reducing the cost of doing business, boosting SME liquidity and supporting the tourism and real estate sectors," said Sami Al Qamzi, director general of Dubai Economy. He said the measures led to foreign direct investment increasing by 41% to AED38.5bn last year.