Dubai’s Economy Grows 2.8% to Dh111.3 Billion, Contributing to Ambitious GDP Doubling Goals
Dubai, a global hub of commerce and innovation, demonstrated its economic resilience by achieving a remarkable 2.8% year-on-year growth in the first quarter of 2023, reaching a total of Dh111.3 billion. This growth, spanning across various key sectors, including transportation, storage, finance, and insurance, reinforces the emirate’s commitment to ambitious goals of doubling its GDP over the next decade.
Last year, Dubai’s economy witnessed an impressive growth rate of 4.4%, showcasing the emirate’s economic dynamism. Building on this momentum, Dubai launched its comprehensive economic strategy ‘D33’ aimed at establishing itself among the top three global economic cities and propelling its economy to a staggering Dh32 trillion over the next ten years.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, commented on the remarkable achievement, stating, “The continued high growth in the first quarter of the year is yet another testament to Dubai’s strong fundamentals, sustainability and resilience and its capacity to constantly create fresh pathways for enterprise and innovation to flourish.” He further acknowledged the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, in driving the emirate’s development.
Supported by its robust investment environment, state-of-the-art infrastructure, and business-friendly ecosystem, Dubai has consistently outperformed several leading global economies. Sheikh Hamdan emphasized this by noting that Dubai’s growth in Q1 2023 far exceeded that of many developed countries, with data from the Organisation for Economic Cooperation and Development indicating a seasonally adjusted growth of 1.61% for OECD countries, and the US economy growing at 1.8% in the same period.
Among Dubai’s key sectors, the transportation and storage industry stood out with a remarkable growth rate of 10.3% in the first quarter of 2023. This sector played a significant role in contributing to the overall Q1 growth, contributing Dh15.6 billion in added value.
The wholesale and retail trade sector, a cornerstone of Dubai’s economy, accounted for 22.9% of the GDP, making it the largest contributor. Following closely was the transportation sector, contributing 14.1%.
The accommodation and food services sector reported a growth rate of 5.6%, adding Dh4.5 billion in value. This sector contributed 4.1% to the economy and an impressive 8% to the overall growth recorded in Q1.
Dubai’s robust real estate activities also demonstrated growth, expanding by 2.4% and contributing 7.4% to the economy. Financial and insurance activities recorded a 3.2% growth, adding Dh14.2 billion in value and contributing 12.7% to the GDP.
Hamad Obaid Al Mansoori, Director General of the Dubai Digital Authority, highlighted that Dubai’s economic success is a direct outcome of visionary economic policies that align with the leadership’s vision to establish the emirate as a global business and investment destination across all sectors.
Helal Saeed Al Marri, Director-General of the Department of Economy and Tourism, echoed the sentiment of accelerated momentum in Dubai’s economy. He emphasized the strength of cross-industry and public-private collaborations, essential in propelling the economy forward. Al Marri further reinforced the strategic significance of the 10-year Dubai Economic Agenda D33, which is underpinned by comprehensive strategies focusing on economic diversification, entrepreneurship, talent attraction, and investment across various sectors.
As the trade sector achieved a growth rate of 1.2% in Q1 2023, contributing Dh25.5 billion in added value, it solidified its role as a vital pillar of the economy, accounting for 22.9% of the total GDP and contributing 10% of the overall growth recorded in Q1 2023.
Dubai’s dynamic economic growth, along with its strategic vision and commitment to innovation, paints a promising picture for the emirate’s future. The continued expansion across diverse sectors places Dubai firmly on the path to achieving its ambitious goal of doubling its GDP within the next decade.
