Dubai’s GDP grows by 3.2%, reaching AED 115 billion
Dubai’s economic growth over the years has not seen a slowdown, and this year is no different! The city’s GDP has grown by 3.2% in the first quarter of 2024.
This growth pushed the city’s economy beyond AED115 billion ($31.3bn), according to the latest figures announced by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai. This is yet another chapter in Dubai’s ongoing story of steady economic expansion!
Sectors that fueled this growth
Several sectors are leading the charge. The transportation and storage sector saw an impressive 5.6% rise, driven in large part by the increase in air transport, with passenger numbers growing by 6.8%. The financial and insurance sector also posted a 5.6% growth, hitting AED15.1 billion, showing Dubai’s strength as a financial hub. Central Bank data backs this up, with credit balances up 8% and deposits growing 15.2%.
Trade, one of the city’s core sectors, grew by 3%, while the information and communications sector added AED5.1 billion, a 3.9% boost. The hospitality sector continues to shine, with Dubai’s hotels achieving an average 83% occupancy rate, contributing to the 3.8% growth in accommodation and food services.
Meanwhile, the real estate sector—always a hot topic in Dubai—grew by 3.7%, adding AED8.4 billion to the economy. The Dubai Land Department also reported a 22% rise in real estate sales, a clear sign of the ongoing demand for property in the city.
Building on a strong 2023
This positive start to 2024 builds on Dubai’s strong 2023 performance when the economy grew by 3.3% overall, reaching AED429 billion. Transportation, trade, real estate, and financial sectors were responsible for almost 70% of that growth.
According to Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism, the Q1 2024 results reflect the continued momentum and confidence in Dubai’s business landscape. He highlighted that the city’s Economic Agenda 2033 is focused on maintaining this growth, improving competitiveness, and streamlining business operations to keep things moving smoothly.
What’s next?
Looking ahead, digital transformation continues to play a pivotal role in Dubai’s economic strategy. Hamad Obaid Al Mansoori, Director General of Digital Dubai, emphasised how the emirate’s economy has always been agile, adapting to global shifts like the rise of AI and data-driven technologies. This flexibility is one of the reasons why Dubai remains a top destination for entrepreneurs and innovators.
Accurate data is critical to driving growth, as Younus Al Nasser, Chief Executive of the Dubai Data and Statistics Establishment, pointed out. With a clear view of the numbers, leadership can make informed decisions that keep the city moving forward. The 3.2% growth is just a snapshot of how well-positioned Dubai is to keep attracting investment, particularly in tech.
Hadi Badri, CEO of the Dubai Economic Development Corporation at DET, also highlighted the importance of innovation. As part of the D33 Agenda, Dubai is committed to creating new job opportunities, drawing in global talent, and promoting sustainable growth across all industries.
Impressive, isn’t it?
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