Dubai’s GDP expanded 4.6% year-on-year and reached $83.7bn (AED307.5bn) during the first nine months of the year when compared to the same period last year.
The growth was led by retail sector, returning F&B, and expanding real estate sectors.
Retail was the biggest contributor to Dubai’s strong performance, accounting for $20.1bn (AED74bn) during the first nine months of 2022.
The fastest growing sector was hospitality, which was up almost 30 per cent on the year before.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council said the exceptional GDP growth was the result of the efforts of various government and private entities to achieve the vision of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to make Dubai’s economy a global benchmark in sustainability and resilience.
Sheikh Hamdan said: “Dubai’s economy is founded on strong principles of income diversification by developing strategic sectors, promoting future-focused economic activities, implementing prudent fiscal policies, and constantly upgrading regulatory and legal frameworks to encourage investment and support business.
“Our strong partnership with the private sector, both locally and internationally, is a key enabler for sustaining our growth with a clear vision to maintain Dubai’s position at the forefront of various international competitiveness indicators.”
According to the latest economic report by the Dubai Digital Authority’s Dubai Statistics Centre, ‘Wholesale and Retail Trade’ accounted for 24.1% of Dubai’s GDP during the January-September period this year, maintaining its position as the top contributor to the emirate’s economy.
In terms of growth, the hospitality and F&B services outperformed all other sectors, with a year-on-year increase of 28% during the year’s first nine months.
Among notable sectoral performances is the remarkable growth in ‘Transport and Storage,’ accounting for 2.5 percentage points or more than half of the 4.6 percentage-point growth in Dubai’s GDP in the first nine months of 2022.
The fact that the sector’s contribution to the overall GDP stood at just 11.6% during the period underscores the dynamism of Dubai’s economy, highlighting how different activities and sectors integrate to lend robustness and strength to the emirate’s economy.
Dubai retail growth
The Wholesale and Retail Trade sector reached a value of $20.1bn (AED74bn) during the first nine months of 2022, growing by 1.6% compared with the same period in 2021.
The activity accounted for 24.1% of Dubai’s nine-month GDP and contributed 9% (more than 0.4 percentage points) to the emirate’s GDP growth.
Dubai’s vibrant retail sector is the world’s top market for international brands. It is also a thriving hub for international trade and re-export, connecting the East with the West for foodstuff, commodities, and consumer and capital goods, among others.
The Transport and Storage sector reached a value of $9.75bn (AED35.8bn) during the first nine months of 2022, growing by a remarkable 26.3% compared with the same period in 2021.
The activity, which accounted for an impressive 2.5 percentage point growth in the emirate’s GDP during the period, includes transportation of passengers and cargo by rail, road, water or air.
It includes associated activities such as terminal and parking facilities, cargo handling and storage facilities.
Within the sector, air transport contributed the lion’s share to its value and growth due to a significant increase in demand for air services. Dubai’s airlines witnessed a 151% increase in the number of passengers they flew during the first nine months of this year compared with the same period last year, thanks to the easing of travel restrictions in most countries worldwide.
Dubai hospitality growth
In terms of growth in the first nine months of 2022, hospitality and F&B outperformed all other economic activities.
The Accommodation and Food Services activity reached a value of $4.3bn (AED15.8bn) during the first nine months of 2022, growing by an exceptional 28% compared with the same period in 2021.
The sector accounted for a 5.1% share of Dubai’s GDP and a 26% share (1.2 percentage points) of GDP growth during the nine months.
The latest data from the Department of Economy and Tourism shows that the emirate hosted 10.12m international visitors from January to September 2022 compared with 3.85m visitors during the same period of last year, a remarkable growth of 163% year-on-year.
The exceptional performance and a robust recovery in tourism can be credited to the efforts of relevant authorities and government entities that organised and implemented a packed and vibrant calendar of events and activities to attract visitors.
Dubai real estate activity
Dubai real estate activity grew by 2.5% year-on-year during the first nine months of 2022, accounting for a 9.1% share of the emirate’s GDP and contributing 5% (0.23 percentage points) to the overall GDP growth.
The growth results from a 76% year-on-year increase in real estate sales during the first nine months of the year, according to Land Department data.
The sector benefitted from the government’s economic stimulus packages and enhanced transparency, boosting investor confidence.
Dubai financial sector
Financial and insurance activities in the city reached a value of $8.9bn (AED32.8bn) during the first nine months of 2022, growing by 1.2% compared to 2021.
The sector accounted for a 10.7% share of GDP and a 3% share (0.14 percentage points) of GDP growth during the nine months.
UAE Central Bank data shows a year-on-year increase of 1.4% in loans and a 4.9% rise in deposits compared with the same period last year.
The sector benefitted from a 1.1% decrease in interest rates on loans and a 15% decrease in interest rates on deposits during the nine-month period, which boosted the banking sector’s bottom line.
The Dubai Crown Prince expressed his appreciation to all those who contributed to this exceptional growth despite the global economic slowdown and an uncertain financial environment worldwide. He added the performance was a testimony to Dubai’s prudent plans, sustainable policies, and strategic public-private partnerships.
Sheikh Hamdan called upon all sectors to continue innovating and pivoting to maintain Dubai’s leading position as a resilient and dynamic economy.
Looking to the next three years Dubai has approved the emirate’s budget for 2023 to 2025.
The emirate is planning $56bn (AED205bn) spending in that time. The city’s 2023 budget proposes expenditures of $18.3bn (AED67.5bn) and revenues of $18.7bn (AED69bn).
Follow us on
