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Wed 27 Mar 2019 02:09 PM

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Dubai's GDP grows 1.9%, adds $108bn in 2018

Dubai Statistics Centre chief hails economic performance, says lower rents boosted demand 'significantly'

Dubai's GDP grows 1.9%, adds $108bn in 2018

Dubai’s GDP at constant prices achieved a growth rate of 1.94 percent in 2018 with a value added of AED398.1 billion ($108.3 billion), according to Dubai Statistics Centre (DSC).

Arif Al Muhairi, executive director of DSC, said: “The improvement in the performance of all economic activities clearly features the extent of flexibility of Dubai’s economy.

"This flexibility and constructive economic policies played a key role in achieving such a balanced economic performance and growth while considering the current slow economic conditions dominating the global economy.”

Al Muhairi said that GDP growth in 2018 was largely driven by the performance of the trade activities which grew by 1.3 percent compared to 2017, and contributed 18.1 percent of the total growth and 30 percent of the growth achieved during the second half of 2018.

The real estate activity also grew by 7 percent in 2018 and contributed by nearly 25 percent to the total economy growth achieved.

Al Muhairi said moderate rental rates in Dubai boosted demand "considerably".

The figures also showed that the transport and storage sector accounted for 13 percent of the GDP growth during 2018, as a result to the sector's growth by 2.1 percent.

Growth of accommodation and food services (hotels and restaurants) rose by 4.5 percent in 2018. Data showed that hotel and hotel apartments reservations grew by 3.2 percent in 2018 compared to 2017.

Financial and insurance sectors grew by 0.6 percent during 2018.

Al Muhairi also revealed that the government sector achieved a growth rate by 1.4 percent in 2018 accounting for 3.6 percent of the total growth achieved in Dubai’s economy.