Dubai’s economy expanded by 3.2 percent in the first quarter of 2024 compared to the same period last year, according to figures released by the emirate’s government.
The growth added over AED115 billion to Dubai’s GDP, continuing a trend of steady economic expansion.
The latest figures were revealed on Tuesday by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai.
Dubai GDP growth aligns with comprehensive development plans for 2033
. @HamdanMohammed: In the first quarter of 2024, Dubai's economy grew by 3.2%, increasing the emirate's GDP to AED115 billion. This performance underscores the success of Dubai's strategy to achieve the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum. We remain… pic.twitter.com/XdzukuAHbB
— Dubai Media Office (@DXBMediaOffice) July 23, 2024
“Dubai is progressing in accordance with a clear vision whose foundations were laid down and whose goals were defined by His Highness Sheikh Mohammed bin Rashid Al Maktoum. What we witness today is a practical reflection of this vision, which has placed Dubai among the leading economic and commercial centres of the world,” Sheikh Hamdan said.
“Dubai’s ambition is limitless, and its success story will remain a role model for cities wishing to create a promising future for their coming generations. Our goal is to sustain success and establish a culture of excellence and leadership across all sectors in the emirate to preserve these gains and move towards new horizons of excellence,” he added.
The Crown Prince highlighted that the growth aligns with Dubai’s comprehensive development plans for 2033, including the Dubai Economic Agenda (D33) and Dubai Social Agenda 2033.
Several key sectors in Dubai contributed to the overall economic expansion
The transportation and storage sector and the financial and insurance activities sector both grew by 5.6 percent.
The trade sector increased by 3 percent, while the information and communications sector rose by 3.9 percent.
The accommodation and food services activities sector expanded by 3.8 percent, and the real estate sector grew by 3.7 percent.
These Q1 2024 results follow Dubai’s economic performance in 2023, when GDP reached approximately AED429 billion, marking a 3.3 percent increase from 2022’s figure of around AED415 billion.
“Dubai’s impressive quarterly growth performance underscores the sustained momentum and confidence within its dynamic business ecosystem, reflecting the robust diversification of our economic foundations. We remain committed to advancing the comprehensive economic framework set forth in Dubai’s Economic Agenda 2033, continuously refining and leveraging various economic instruments to enhance competitiveness, attract substantial investment, and facilitate seamless business operations,” Helal Saeed Almarri, Director General, Dubai Department of Economy and Tourism (DET) said.
Almarri added that the government is implementing initiatives such as the Foreign Direct Investment Development Program to attract investments aligned with the D33 Agenda, and the Dubai Economic Model to monitor the city’s progress.
In addition, Hamad Obaid Al Mansoori, Director General of Digital Dubai noted that the growth indicators demonstrate Dubai’s progress in enhancing its economic leadership and investment attractiveness.
He emphasised the role of digital transformation in making the emirate a destination for entrepreneurs.
“Dubai’s economy has always drawn its strength from flexibility, keeping pace with changes, and proactive thinking that anticipates major economic transformations in the world, most notably the digital economy supported by artificial intelligence and data,” he said.
Moreover, Younus Al Nasser, Chief Executive of the Dubai Data and Statistics Establishment, explained the importance of providing accurate data on various economic sectors to support leadership decision-making and policy development.
“The recent data showing Dubai’s economy has grown by 3.2 percent compared to the same period last year gives us an indication about the future of the emirate’s economy. Dubai has always positioned itself as a leading example in attracting investments mainly in emerging technologies, which represents the backbone that supports the development of all sectors,” he said.
Hadi Badri, CEO of Dubai Economic Development Corporation at DET, further attributed the strong economic performance to collaborative efforts between public and private sector partners.
“Looking to the future, Dubai remains steadfast in its commitment to encouraging and harnessing innovation to accelerate the implementation of strategic economic initiatives, including streamlining the pathways for businesses and investors, creating new job opportunities, and attracting global talent to the city. All of these efforts are in line with the ambitious D33 Agenda, a comprehensive plan that aims to promote sustainable and inclusive growth across all of Dubai’s key industries,” he said.
Breaking down the performance of individual sectors in Dubai
The transportation and storage sector recorded AED15.4 billion in growth during Q1, contributing 13.4 percent to Dubai’s GDP.
Air transport was the most significant activity within this sector, with passenger numbers increasing by 6.8 percent in the first quarter.
The financial sector grew by 5.6 percent compared to Q1 2023, reaching AED15.1 billion and contributing 13.1 percent to the total economy.
Meanwhile, the Central Bank of the UAE data showed an 8 percent growth in credit balances and a 15.2 percent growth in deposit balances compared to the same period in 2023.
The wholesale and retail trade sector maintained its lead in terms of GDP contribution at 22.9 percent, with a value of AED26.3 billion and a growth rate of 3 percent.
The real estate sector grew by 3.7 percent, contributing 7.3 percent to Dubai’s GDP with a total value of AED8.4 billion.
According to the Dubai Land Department, the value of real estate sales increased by 22 percent.
The utilities and waste management sector added value of AED3.2 billion, achieving a growth of 7.5 percent and contributing 2.8 percent to the overall economy.
The information and communications sector grew by 3.9 percent to reach a value of AED5.1 billion, contributing 4.4 percent to GDP.
The accommodation and food services sector posted a growth of 3.8 percent, with a value of AED4.7 billion.
Dubai’s hotels maintained high occupancy levels, with an average rate of 83 percent. The emirate welcomed 5.2 million international visitors during Q1 2024, an 11 percent increase compared to the same period in 2023.
The manufacturing sector registered growth of 1.6 percent, accounting for AED8.4 billion in total value and contributing 7.3 percent to GDP.
Dubai economic activities in 2023
Other economic activities, including agriculture, mining, construction, and professional services, collectively witnessed a growth of 0.46 percent, contributing 24.7 percent to GDP.
Looking back at 2023, Dubai’s overall economy grew by 3.3 percent. The transportation, trade, real estate, and financial activities sectors accounted for approximately 68.8 percent of the total growth achieved throughout the year.
The transportation and storage sector witnessed a growth of 9.2 percent in 2023, reaching a combined value of AED49.3 billion.
The wholesale and retail trade sector rose to AED108.6 billion, achieving a growth rate of 2 percent.
The real estate sector posted a 5.6 percent jump, increasing from AED32.1 billion in 2022 to AED33.9 billion in 2023.
The financial and insurance activities sector grew by 3 percent, rising from AED47.9 billion in 2022 to AED49.4 billion in 2023.
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