Dubai’s Steady Economic Growth
Dubai’s economic performance continues to demonstrate resilience and growth. His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai, emphasized the emirate’s steady progress and strong economic indicators. The emirate achieved a 3.2% growth in GDP, reaching AED 115 billion in the first quarter of 2024 compared to the same period in 2023.
The robust economic performance is a testament to the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. Sheikh Hamdan highlighted the combined efforts of various stakeholders in realizing the objectives of Dubai’s comprehensive development plans for 2033. This includes the Dubai Economic Agenda (D33) and Dubai Social Agenda 2033, which aim to enhance overall standards of wellbeing and quality of life, consolidating Dubai’s status as a global economic hub.
Leadership and Vision
Sheikh Hamdan reiterated that Dubai’s economic progress is a reflection of a clear vision laid down by Sheikh Mohammed. “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,” he stated. The emirate’s ambition and success story serve as a model for cities aiming to create a promising future for their coming generations. The goal is to sustain success and establish a culture of excellence and leadership across all sectors in Dubai.
Sectoral Growth
The first quarter growth in Dubai’s GDP is driven by various vital sectors:
- Transportation and Storage: This sector achieved growth of 5.6%, contributing AED 15.4 billion to the GDP.
- Financial and Insurance Activities: The financial sector grew by 5.6%, reaching AED 15.1 billion.
- Wholesale and Retail Trade: This sector maintained its lead, contributing AED 26.3 billion to the GDP with a growth rate of 3%.
- Real Estate: The real estate sector grew by 3.7%, contributing AED 8.4 billion.
- Utilities and Waste Management: This sector added AED 3.2 billion to the GDP with a growth of 7.5%.
- Information and Communications: This sector grew by 3.9%, reaching AED 5.1 billion.
- Accommodation and Food Services: This sector posted a growth of 3.8%, contributing AED 4.7 billion.
- Manufacturing: The manufacturing sector registered a growth of 1.6%, accounting for AED 8.4 billion.
Other economic activities collectively witnessed a growth of 0.46%, contributing 24.7% to the GDP. These activities include agriculture, mining, construction, professional services, and administrative services.
Review of 2023 Economic Performance
In 2023, Dubai’s GDP reached approximately AED 429 billion, marking an increase of 3.3% compared to AED 415 billion in 2022. Helal Saeed Almarri, Director General of Dubai Department of Economy and Tourism (DET), noted that Dubai’s impressive quarterly growth performance underscores the sustained momentum and confidence within its dynamic business ecosystem. The emirate remains committed to advancing the comprehensive economic framework set forth in Dubai’s Economic Agenda 2033.
Hamad Obaid Al Mansoori, Director General of Digital Dubai, emphasized that the upward trajectory of economic growth indicators across various sectors shows that Dubai is confidently moving towards enhancing its economic leadership and investment attractiveness. This progress is supported by economic diversification and the adoption of the latest technologies and solutions, including digital transformation.
Significance of Accurate Data
Younus Al Nasser, Chief Executive of the Dubai Data and Statistics Establishment, stressed the importance of accurate data on various economic sectors to support decision-making and strategy development. The recent data showing a 3.2% growth compared to the same period last year indicates a promising future for Dubai’s economy.
Public-Private Collaboration
Hadi Badri, CEO of Dubai Economic Development Corporation, highlighted that Dubai’s visionary leadership and the synergy between public and private sector partners have been critical to strong economic performance. This collaboration has propelled traditional and emerging sectors, including logistics, trade, real estate, and financial services, to new heights.
Sector Contributions to GDP
The growth recorded in various sectors during the first quarter of 2024 is noteworthy:
- Transportation and Storage: The sector achieved AED 15.4 billion in GDP with a growth of 5.6%, contributing 13.4% to the emirate’s GDP.
- Financial Sector: Real growth of 5.6%, contributing AED 15.1 billion to GDP.
- Wholesale and Retail Trade: Maintained its lead, contributing AED 26.3 billion with a growth rate of 3%.
- Real Estate: Grew by 3.7%, contributing AED 8.4 billion to GDP.
- Utilities and Waste Management: Grew by 7.5%, adding AED 3.2 billion to GDP.
- Information and Communications: Grew by 3.9%, contributing AED 5.1 billion.
- Accommodation and Food Services: Grew by 3.8%, contributing AED 4.7 billion.
- Manufacturing: Registered growth of 1.6%, contributing AED 8.4 billion.
In conclusion, Dubai’s economic growth reflects a well-diversified economy and strategic planning. The emirate continues to attract investments, driven by strong leadership and a commitment to excellence. Dubai’s forward-thinking approach and dedication to innovation position it as a leading global economic hub.