Dubai’s economy sees a 3.2 percent growth in the first half of 2023!

Beneath the gleaming skyscrapers and bustling streets of Dubai, a remarkable story of economic growth is unfolding. We’re here to uncover all the details!

In the first half of 2023, the economy of Dubai demonstrated an impressive growth rate of 3.2%. That's compared to the same period last year, and it reflects a total value of AED 223.8 billion ($60.9 billion).

Here’s everything you need to know:

Dubai's Crown Prince applauds this economic triumph

This success story hasn't gone unnoticed.

Dubai's Crown Prince, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, who also chairs the Executive Council of Dubai, couldn't help but praise this formidable performance. He applauded the emirate's resilience and economic prowess, underlining its commitment to achieving impressive targets.

"The economic expansion is consistent with the goals of the Dubai Economic Agenda D33 to double GDP growth over the next decade and consolidate the emirate’s position as one of the world’s top three urban economies," Sheikh Hamdan said. The ambition is clear: Dubai aims to stand shoulder to shoulder with the world's leading urban economies.

Key sectors that fuel Dubai's economic triumph

This economic triumph wasn't a stroke of luck. It was driven by significant growth in several key sectors.

Some of these to note are: Transportation, wholesale and retail trade, financial and insurance, accommodation and food services, real estate, information and communication, and manufacturing played pivotal roles in steering Dubai toward this remarkable growth. Together, they contributed to around 93.9% of the H1 2023 economic surge!

Helal Saeed Almarri, Director General of Dubai’s Department of Economy and Tourism, reiterated the commitment to fueling the Dubai Economic Agenda D33. He stated, "We are committed to the acceleration of all projects under D33 and the crystallisation of these critical economic levers, so we can continue to build the enabling ecosystem and regulatory framework for sustainable economic development, enhanced global attractiveness and a hyper-connected network for both increased expansion and inbound investment."

Government and private sectors: A collaborative force

Dubai's economic ascent didn't happen in isolation. The collaborative spirit between the government and the private sectors emerged as a driving force behind this triumph. This synergy has not only fueled economic growth but also fortified Dubai's reputation as an international business hub.

Trade activities played a significant role in this economic saga, contributing an added value of AED 53.6 billion in H1 2023. Transportation and logistics sectors were at the forefront, boasting an impressive 10.5% growth rate. Meanwhile, the hotel and food services sector reported a 9.2% growth rate.

Dubai’s resilient economic model

Despite the challenges over the past few years, Dubai's economy has proven its resilience. With international visitors returning to the emirate, even surpassing pre-COVID-19 levels, underscored Dubai's allure as a premier tourist destination, not just that, but international investors also played a major role in fueling the real estate market of Dubai.

Real estate, financial, and insurance activities all displayed positive growth in the first half of 2023, further reinforcing Dubai's economic growth. Information and communications activities also made their mark with a 3.8% growth rate.

Dubai's economic model is more than a success story; it's a prototype for future economies.

Keen to read further about Dubai’s economy?

Take a read on UAE's 2024 budget, where they prioritise growth, social welfare, and sustainability here.

Curious to know how Dubai’s real estate market performed in H1 2023?

Check out our Allsopp & Allsopp market snapshot for H1 2023 here.

Or get key insights into how each community within Dubai is performing by checking out our Data Hub tool.