Dubai’s GDP grows by 3.2% in first quarter of 2024

Image credit: Government of Dubai Media Office

In the first quarter of 2024, Dubai’s economy grew by 3.2 per cent year-on-year, increasing the emirate’s GDP to Dhs115bn as sectors such as transport and storage as well as real estate logged impressive growth numbers.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai highlighted the collaborative efforts of various stakeholders in achieving the emirate’s comprehensive development goals for 2033, particularly the Dubai Economic Agenda (D33) and the Dubai Social Agenda 2033.

In the first quarter of 2024, Dubai’s economy grew by 3.2 per cent, 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 committed to achieving… pic.twitter.com/NM7HjrN7Pm

— Hamdan bin Mohammed (@HamdanMohammed) July 23, 2024

Sheikh Hamdan said, “Dubai is progressing in accordance with a clear vision whose foundations were laid down and whose goals were defined by 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 emphasised that Dubai’s continued success exemplifies its ambition and leadership, which serve as a model for other cities aiming to secure a prosperous future for upcoming generations.

He added, “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.”

Key sectors driving Dubai’s GDP

Key sectors driving this growth include transportation and storage (up 5.6 per cent), financial and insurance activities (up 5.6 per cent), trade (up 3 per cent), information and communications (up 3.9 per cent), accommodation and food services (up 3.8 per cent), and real estate (up 3.7 per cent).

Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism, noted that Dubai’s sustained growth reflects the diversification of its economic foundations. The comprehensive economic framework laid out in Dubai’s Economic Agenda 2033 continues to enhance the city’s competitiveness and investment appeal.

He said, “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.”

Younus Al Nasser, chief executive of the Dubai Data and Statistics Establishment, underscored the importance of accurate data in supporting leadership decisions and developing strategies to achieve the city’s goals.

He pointed out that the 3.2 per cent growth is indicative of Dubai’s successful strategy in attracting investments, especially in emerging technologies.

The transportation and storage sector saw significant growth, driven primarily by a 6.8 per cent increase in air transport demand.

The financial sector benefited from an 8 per cent growth in credit balances and a 15.2 per cent rise in deposit balances.

The trade sector maintained its lead, contributing 22.9 per cent to the GDP, while the real estate sector continued to thrive with high demand and notable projects, resulting in a 3.7 per cent growth.

Other sectors contributing to this upward trajectory include utilities and waste management (up 7.5 per cent), information and communications (up 3.9 per cent), accommodation and food services (up 3.8 per cent), and manufacturing (up 1.6 per cent).

In 2023, Dubai’s economy grew by 3.3 per cent, with transportation, trade, real estate, and financial activities accounting for approximately 68.8 per cent of the total growth. This strong performance is expected to continue, positioning Dubai as a leading global economic hub.

Dubai’s GDP growth mirrors that of Abu Dhabi which grew by 3.3 per cent in the first quarter of this year. The growth is primarily due to the positive performance of non-oil economic activities such as real estate and finance, as per the Statistics Centre – Abu Dhabi (SCAD)’s official release.

Read: Abu Dhabi GDP growth hits 3.3% in first quarter of 2024