Dubai‘s real gross domestic product (GDP) rose by 3.3 percent in the first nine months of 2023, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince and Chairman of The Executive Council of Dubai said via an X post.
The latest GDP figures demonstrate the emirate is steadily progressing towards achieving the vision laid out in Dubai Economic Agenda 2033, launched by Sheikh Mohammed bin Rashid Al Maktoum to transform Dubai into one of the top three global urban economies over the next decade.
“Driven by the strategic vision of its leadership, Dubai has set an example for economic strength, resilience and innovation. With the dedicated efforts of our government teams and international business partners, we look forward to achieving many more milestones in 2024,” Sheikh Hamdan said.
Dubai economy rhrives with impressive growth across sectors
Accommodation and food services activities spearheaded the surge, experiencing an 11.1 percent growth, solidifying Dubai’s global reputation as a tourism leader.
Transportation and storage services closely followed, surging by 10.9 percent, emphasising the emirate’s role as a prominent international logistics hub.
The information and communications sector also demonstrated growth with a 4.4 percent increase, showcasing Dubai’s commitment to cutting-edge technologies and a thriving knowledge economy.
The economic engine of Dubai showcased vibrant activity in various sectors during the first nine months of 2023, as revealed by the Dubai Data and Statistics Establishment.
Real estate saw a 4 percent surge, financial and insurance activities grew by 2.7 percent, and the knowledge economy excelled with a 2.6 percent increase in education.
Helal Saeed Al Marri, Director General of Dubai’s Department of Economy and Tourism, highlighted the success of Dubai’s economic performance, attributing it to robust, sustainable policies and business-first initiatives.
He emphasised the continuous collaborative efforts between the public and private sectors, working within a unified framework to achieve the objectives of the Dubai Economic Agenda D33.
The comprehensive economic system of Dubai operates with high levels of harmony and efficiency, according to Hamad Obaid Al Mansoori, Director General of Digital Dubai.
He highlighted Dubai’s success is fueled by visionary leadership and a future vision with global reach, positioning the city among the world’s most dynamic and competitive.
The growth in various sectors, including accommodation and food services, transportation and storage, information and communications technology, real estate, finance, education, manufacturing, and essential services like electricity, water, and waste management, reflects Dubai’s commitment to sustained development and future success on the global stage.
“Dubai’s lifeline industries – electricity, water, and waste management – grew 2.2% to reach AED10.9 billion in the first nine months of 2023. This increase reflects the rising demand for services in this sector,” the Dubai Media Office said in a statement.
“As per Dubai Data and Statistics Establishment figures, many other activities showed growth. These included professional, scientific, and technical activities, which expanded by 1.9 percent, construction activities which rose by 1.6 percent, and wholesale and retail trade activities, which expanded by 1.5 percent. This multifaceted progress paves the way for Dubai’s sustained development and future success,” the statement added.
Dubai an investment destination: Economists
Earlier this month, Arabian Business also reported on Standard & Poor’s projections that the UAE economy will expand by over 5 percent in 2024, well above the estimated 2.8 percent growth for the global economy.
Tatiana Leskova from S&P Global Ratings said while the world economy saw subdued activity, UAE GDP grew approximately 3 percent in 2023, including nearly 6 percent growth in the non-oil sector.
Leskova highlighted that key drivers of UAE growth next year will be the hospitality, wholesale, retail and financial services sectors in Dubai.
So far, Dubai has remained relatively shielded from international headwinds thanks to limited sensitivity to interest rate hikes and contained inflation. Mortgage transactions in Dubai continued growing despite higher rates as over 80 percent of real estate deals are cash-based.
In contrast, European property markets have weakened with high rates and inflation squeezing purchasing power.
China’s market also faces challenges from tightened developer margins and falling prices. The US saw some recovery in demand early in 2023 after slowdown.
Russians have become one of the largest investor groups in Dubai recently, though Indians, Europeans and GCC nationals remain the primary buyers long-term.
Overall, Dubai maintains an advantage as an investment destination over other emirates.
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