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Dubai's GDP tops AED 115 billion in first quarter of 2024, with its economy growing 3.2% compared to same period in 2023
July 23, 2024
2024 يوليو 23
image Dubai's GDP tops AED 115 billion in first quarter of 2024, with its economy growing 3.2% compared to same period in 2023

Key takeaways:

    • Dubai's economy grew by 3.2% in the first quarter of 2024, with significant contributions from transportation and storage (5.6% growth), financial and insurance activities (5.6% growth), and wholesale and retail trade (3% growth).
    • This growth is attributed to the strategic implementation of Dubai’s Economic Agenda 2033 (D33) and the vision of the Ruler of Dubai, focusing on quality of life, economic growth, and investment attractiveness.
    • The robust performance results from public-private sector collaboration, selective investment attraction, economic diversification, and digital transformation initiatives.

 

The growth in Dubai’s GDP is the result of growth achieved in various vital sectors that constitute the basic pillars of the economic system in the emirate. The transportation and storage sector, and the financial and insurance activities sector achieved identical growth rates of 5.6 percent, the trade sector logged a growth of 3 percent, the information and communications sector posted a growth of 3.9 percent, the accommodation and food services activities sector grew 3.8 percent, and the real estate sector achieved a growth of 3.7 percent.

The economic growth in the first quarter of the year mirrors the success story of 2023, when the GDP reached approximately AED 429 billion, marking an increase of 3.3 percent compared to the 2022 figure of approximately AED 415 billion.

Outstanding display

 

Transportation and storage

The growth recorded by the transportation and storage sector amounted to AED 15.4 billion during the first quarter of the year, achieving a growth of 5.6 percent compared to the first quarter of last year. This sector contributed 13.4 percent to the emirate's GDP, significantly enhancing its impact on overall economic growth. The growth achieved during the first quarter contributed 0.7 percentage points, which accounts for 23.2 percent of the total growth in the emirate's economy. The sector encompasses all activities pertaining to land, water or air transport involving individuals, goods, handling and storage activities, and postal services. Air transport is the most significant activity within this sector. Its performance was bolstered by increased demand for national carriers' services, highlighted by a 6.8 percent increase in the number of passengers through the first quarter.

 

Financial and insurance activities

The financial sector achieved a real growth of 5.6 percent compared to the same period in 2023, reaching AED 15.1 billion compared to AED 14.3 billion in the first quarter of last year. This sector contributed 13.1percent to the emirate’s total economy, driving economic growth by 0.7 percentage points. According to Central Bank of the UAE data at the end of the first quarter of 2024, there was an 8 percent growth in credit balances and a 15.2 percent growth in deposit balances compared to the same period in 2023.

 

Wholesale and retail trade

Data indicates that this sector maintained its lead in terms of contribution to the total GDP at 22.9 percent with a value of AED 26.3 billion, compared to AED 25.5 billion during the same period in 2023, achieving a growth rate of 3 percent. This increase pushed up the total growth in the emirate's economy by 0.7 percentage points. The wholesale and retail trade activity supports all other sectors of the economy by ensuring availability of goods that serve diverse purposes, whether for inputs or intermediate consumptions, final consumption, , or capital formation

 

Real estate activities sector

This sector is witnessing significant movement driven by high demand and launch of notable real estate projects across the emirate. The sector achieved a growth rate of 3.7 percent during the first quarter of 2024, contributing 7.3 percent to the emirate's GDP with a total value of AED 8.4 billion, driving economic growth by 0.3 percentage points. Real estate activity maintained its upward trajectory in value-added growth during the first quarter. According to data issued by the Dubai Land Department, the value of real estate sales surged by 22 percent.

 

Utilities and waste management

The electricity, gas, water, and waste management activities sector added value amounting to AED 3.2 billion during the first quarter, compared to AED 2.98 billion during the same period last year, achieving a growth of 7.5 percent. This sector contributed 2.8% to the emirate’s overall economy, driving growth by 0.2 percentage points.

 

Information and communications sector

This sector grew by 3.9 percent to reach a value of AED 5.1 billion, driving economic growth by 0.2 percentage points. It contributed 4.4 percent to the emirate’s GDP.

 

Accommodation and food services activities

This sector posted a growth of 3.8 percent, with a value of AED 4.7 billion. Its contribution to the GDP reached 4.1 percent, driving economic growth by 0.2 percentage points. According to data from the Department of Economy and Tourism, Dubai’s hotels maintained high occupancy levels, with an average hotel occupancy rate of 83 percent. Dubai welcomed 5.2 million international visitors during the first quarter of 2024, an increase of 11 percent compared to the same period in 2023.

 

Manufacturing

The manufacturing sector registered growth of 1.6 percent, accounting for AED 8.4 billion in total value during the first quarter, compared to AED 8.3 billion during the first quarter of last year. Its contribution to the emirate's GDP amounted to 7.3 percent, boosting economic growth by 0.1 percentage points during the first quarter.

 

Other activities

Other significant economic activities viewed collectively witnessed a growth of 0.46 percent, contributing 24.7 percent to the GDP and boosting economic growth by 0.12 percentage points. These activities include agriculture, mining, construction, professional services and administrative services, among others.

 

Economic figures from 2023

In 2023, the overall economy grew by 3.3 percent, with transportation, trade, real estate, and financial activities accounting for approximately 68.8 percent of the total growth achieved through the year. The remaining activities contributed 31.2 percent.

Transportation and storage

This sector witnessed a growth of 9.2 percent in 2023, reaching a combined value of AED 49.3 billion, compared to AED 45.2 billion in 2022, spurring economic growth by 1 percentage point.

 

Wholesale and retail trade

The value of this sector rose from AED 106.5 billion in 2022 to AED 108.6 billion last year, achieving a growth rate of 2 percent. Its contribution to the emirate’s GDP was 25.3 percent, driving economic growth by 0.5 percentage points.

 

Real estate activities

This sector was among the sectors that achieved the highest growth rates last year posting a 5.6 percent jump, driven by an increase in its total value from AED 32.1 billion in 2022 to AED 33.9 billion in 2023. This growth contributed 0.4 percentage points to economic growth in the emirate.

Financial and insurance activities

The value of this sector rose from AED 47.9 billion in 2022 to AED 49.4 billion in 2023, representing a growth rate of 3 percent. The sector contributed 11.5 percent to the emirate’s GDP, driving economic growth by 0.3 percentage points.