Sheikh Hamdan reviews Dubai’s H1 2023 economic progress

Dubai’s economy recorded strong growth across various sectors in the first half of 2023, driven by the objectives of the Dubai Economic Agenda (D33), an $8.7tn economic plan that envisages increasing foreign direct investment (FDI) to $176.98bn (Dhs650bn) over by 2033.

D33 is aimed at making Dubai a global role model for economic resilience, growth, diversification and prosperity. Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of The Executive Council said the city has emerged as one of the world’s safest and most attractive cities to live, visit and work.

“Our economic accomplishments, as well as our future goals, have been shaped by rigorous strategic planning, the exemplary efforts of our institutions, and our remarkable resilience and adeptness in navigating global challenges and the rapidly evolving economic environment,” Sheikh Hamdan said while reviewing a report on the emirate’s economic progress in H1 2023.

“These exceptional results bolster our outlook for record results in the coming months. We look forward to a new, strong beginning in 2024, during which we seek to further enhance the business environment and accelerate economic growth to contribute to the goals of D33.”

Global role model

Dubai was named the world’s top-ranked destination in Tripadvisor’s Travellers’ Choice Awards 2023, further contributing to the D33 goal of making the city one of the world’s three top destinations for tourism and business.

Tourism hub

The city welcomed more than 8.5 million international visitors during the first six months of 2023, proving its ability to overcome challenges brought by global changes and the renewed momentum of its tourism sector.

A hotbed of wealth creation

Dubai emerged as one of the world’s three most attractive cities for the wealthy and one that managed to recover from the economic impact of COVID-19 faster, thanks to the city’s strategic location, robust infrastructure and economic growth.

The emirate’s growing attractiveness for wealth owners supports the goal of D33 to increase FDI inflows to an annual average of Dhs60bn over the next decade, supported by efforts to nurture investor confidence and further enhance regulatory and legislative frameworks.

Dubai’s financial markets

The Dubai Financial Market (DFM) was one of the best-performing stock markets in the first half of 2023, with its index rising 14 per cent to close at 3,792 points. The market value of listed companies increased by Dhs71bn to reach Dhs652bn, while trading volumes soared above Dhs46bn. Institutional trading on the DFM surged to 57 per cent of trading value while foreign trading grew to 48 per cent.

Similarly, Nasdaq Dubai recorded strong growth in 2023, with the value of listed sukuk rising to $75bn, cementing the city’s position as one of the world’s leading hubs for sukuk listings. These results further support D33’s objective of making Dubai one of the world’s top four financial centres.

Robust property market

Dubai’s real estate sector continued to experience demand growth in the first half of 2023, with total transactions reaching Dhs285bn. This robust performance supports the objectives of D33 to create a highly competitive environment and infrastructure and make Dubai the world’s best place to live, visit and work.

Read: Dubai retains global top spot for attracting greenfield FDI projects