Grant Thornton’s Sameer Abdi on what’s driving Dubai’s growth engine
Abdi, a partner and head of advisory at Grant Thornton, shares why financial services are punching far above their weight — and what it will take to sustain the run
04 September, 2026
TT
16
Financial and insurance activities accounted for just 14 per cent of Dubai’s GDP in the first quarter of 2026, yet delivered 37 per cent of the emirate’s overall growth, expanding 6.5 per cent while the wider economy grew 2.4 per cent.
For Sameer Abdi, partner and head of advisory at Grant Thornton, that gap is no statistical quirk but a signal of Dubai’s evolution from a regional banking centre into a diversified international financial hub connecting capital across Europe, Asia, Africa and the Middle East.
Abdi spoke to Gulf Business about what is powering the sector’s outsized contribution, the multiplier effect rippling through real estate, technology and professional services, and the constraints — from talent shortages to intensifying regional competition — that could yet slow the momentum as Dubai pursues its D33 ambitions.
Financial and insurance activities accounted for 14 per cent of Dubai’s GDP in Q1 2026 but generated 37 per cent of its overall growth. What is driving the sector’s disproportionate contribution?
The financial services sector is growing significantly faster than the wider economy and increasingly serves as the financing, investment and transaction infrastructure underpinning growth across multiple industries.
While Dubai’s GDP grew by 2.4 per cent year-on-year in Q1 2026, financial and insurance activities expanded by 6.5 per cent, increasing the sector’s contribution to overall economic growth disproportionately.
Several factors are driving this performance. Banks continue to benefit from strong credit demand, growing deposits and robust liquidity conditions. At the same time, there has been notable growth in advisory services, asset management, capital markets activity, wealth management and payments businesses. This reflects a broader diversification of revenue streams beyond traditional lending income.
Dubai is also benefiting from its position as a regional hub for cross-border capital flows, multinational corporates, private wealth and family offices, which continues to fuel demand for sophisticated financial services.
How much of this momentum reflects structural changes in Dubai’s economy rather than shorter-term market or interest-rate conditions?
The evidence suggests that the majority of the momentum is structural rather than cyclical.
In recent years, Dubai has attracted a growing number of global financial institutions, asset managers, hedge funds, family offices and private investment firms that have established a permanent regional presence. The continued expansion of DIFC, growth in regulated financial institutions, and increasing concentration of private capital all point towards a long-term shift in Dubai’s role within the global financial system.
Interest-rate conditions have undoubtedly supported profitability and liquidity over recent years, but they do not fully explain the current trajectory. Indeed, many financial institutions are now generating growth through fee income, advisory mandates, wealth management services and capital markets activity, reducing dependency on interest-rate-driven earnings.
This reflects a fundamental evolution of Dubai from a regional banking centre into a diversified international financial hub connecting capital flows between Europe, Asia, Africa and the Middle East.
How is the expansion of financial services affecting other parts of Dubai’s economy, particularly real estate, construction, professional services and technology?
The impact extends well beyond the financial sector itself.
Financial institutions create significant demand for office space, residential accommodation, legal services, consulting, tax advisory, audit, compliance and technology solutions. This has contributed to growth in real estate, construction and professional services, while helping stimulate investment in commercial developments and supporting occupancy demand across key business districts.
Technology is also emerging as a major beneficiary. Financial institutions are increasing investment in artificial intelligence, cybersecurity, data governance, digital payments and cloud infrastructure. This is creating new opportunities for technology firms and accelerating innovation across the wider economy.
In effect, every new financial institution that establishes operations in Dubai creates a multiplier effect that generates economic activity across several adjacent sectors.
Dubai’s economy is increasingly connected to international capital and cross-border business. What opportunities does that create, and where is the emirate most exposed to global economic or geopolitical shocks?
Dubai’s connectivity creates significant opportunities to position itself as the preferred gateway for investment into the Middle East, Africa and South Asia. This strengthens opportunities across wealth and asset management, private credit, trade finance, insurance, capital markets, fintech and cross-border M&A activity.
The city’s attractiveness stems from its regulatory environment, geographic location, world-class infrastructure and ability to serve both developed and emerging markets from a single platform.
However, greater integration with global capital markets also means increased exposure to external shocks. Changes in global liquidity conditions, interest-rate environments, geopolitical tensions, trade disruptions and shifts in investor sentiment can all impact capital flows and business activity more rapidly than in less connected economies.
The key challenge for Dubai is therefore maintaining openness while continuing to strengthen resilience through robust regulation, effective risk management and diversified sources of growth.
What are the main constraints that could slow the financial sector’s growth?
Talent remains the most significant constraint. Demand for experienced professionals in areas such as investment management, risk, compliance, cybersecurity, digital assets, quantitative finance and artificial intelligence continues to outpace supply.
Cybersecurity and operational resilience will also become increasingly important as institutions digitise more services and rely heavily on interconnected technology platforms.
Regulatory complexity represents another challenge. Maintaining high regulatory standards is essential for investor confidence, but frameworks must continue evolving efficiently alongside innovation in areas such as digital assets, AI and cross-border financial services.
Finally, competition from other regional financial centres is intensifying. Sustaining momentum will require Dubai to continue attracting global talent, capital and institutions while ensuring that businesses view the emirate as a location for substantive decision-making and investment activity rather than simply a regional sales office.
What does the sector’s first-quarter performance signal about Dubai’s progress towards the D33 objectives, and what further reforms or investments are needed?
The strong performance of the financial sector is an encouraging indicator that Dubai is making meaningful progress towards the ambitions of the D33 agenda. Financial services are playing an increasingly important role in attracting investment, facilitating international trade and supporting economic diversification.
However, sustaining this trajectory over the long term will require continued focus in several key areas.
First, Dubai should continue deepening its capital markets by expanding opportunities across equity markets, debt markets, sukuk, private credit and alternative investments.
Second, investment in talent development will be essential to ensure a sustainable pipeline of skilled professionals and future industry leaders.
Third, continued regulatory innovation should seek to balance market competitiveness with investor protection and financial stability. Finally, further investment in technology infrastructure, cybersecurity resilience and digital transformation will be critical to maintaining Dubai’s position as one of the world’s leading financial centres.
Overall, the first-quarter results indicate that financial services are becoming one of the principal engines of Dubai’s economic growth and a critical enabler of the emirate’s long-term economic ambitions under D33.




















