A recent study by Dubai Chamber of Commerce and Industry claimed the UAE to register its lowest inflation rate in five years in 2010 on accounts steep decline in rents. Dubai's inflation rate peaked to 11.3 per cent in 2008 and stood at 4.1 per cent in 2009, told the Dubai Statistics Centre.

The study maintains, "Dubai recorded its highest inflation rate in over 20 years at 11.3 per cent in 2008 on the back of a surge in rents and food prices due to higher global commodity prices and a sharp increase in its import bill due to the weakening US dollar."

Now, with accommodation, commercial real estate and warehousing rents are declining, there would be rise in business activities in the country in the coming time. Decline in inflation would definitely have positive impact over the UAE economy as it would help to increase competitiveness in the market.