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Dubai's economy grows 2.8% to Dh111.3 billion

The growth contributes to the ambitious goals to double the emirate's GDP over the next decade

Published: Tue 8 Aug 2023, 1:41 PM

Updated: Tue 8 Aug 2023, 4:57 PM

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Dubai’s economy grew at a good pace of 2.8 per cent year-on-year in the first quarter of 2023 to Dh111.3 billion, led by strong growth of all the key sectors including transportation and storage and finance and insurance.

The economy grew at 4.4 per cent last year.

As part of Dubai Economic Agenda ‘D33’ launched earlier, the emirate aims to position itself among the top three global economic cities and double the size of the economy to Dh32 trillion over the next 10 years.

“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. The city’s ability to sustain growth further reflects the ambitious development vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai,” said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council.

“Supported by its outstanding investment environment, robust infrastructure and business-enabling ecosystem, Dubai continues to outpace some of the world’s leading economies,” said Sheikh Hamdan.

Dubai’s growth in the first quarter of 2023 is significantly higher than that of some of the most developed countries in the world. Data issued by the Organisation for Economic Cooperation and Development indicated a seasonally adjusted growth of 1.61 per cent for OECD countries. While the US economy grew 1.8 per cent in the first quarter of the year.

The transportation and storage sector outperformed all others with a significant growth of 10.3 per cent in Q1 2023. It contributed 48 per cent to the overall Q1 growth, bringing Dh15.6 billion in added value.

Wholesale and retail trade continued to be the largest contributor to the economy, accounting for 22.9 per cent of the GDP, followed by the transportation sector, which accounted for 14.1 per cent.

The accommodation and food services sector reported a 5.6 per cent growth rate, adding approximately Dh4.5 billion in value. It contributed 4.1 per cent to the economy and 8 per cent to overall recorded growth in Q1.

Real estate activities grew by 2.4 per cent, contributing 7.4 per cent to the economy and 6 per cent to the overall recorded growth.

Financial and insurance activities recorded a growth of 3.2 per cent in the first quarter of 2023, contributing 12.7 per cent to the GDP and Dh14.2 billion in added value.

“Dubai's success in the economic field is an inevitable result of economic policies that express the vision of the leadership to make Dubai a leading global business and investment destination for all sectors,” said Hamad Obaid Al Mansoori, director general of the Dubai Digital Authority.

Helal Saeed Al Marri, director-general of the Department of Economy and Tourism, said the economy is witnessing “accelerated momentum, supported by strong cross-industry and public-private collaboration.

He added that the 10-year Dubai Economic Agenda D33 vision is further fortified by comprehensive strategies centred around economic diversification, entrepreneurship and the attraction of both talent and investment across sectors.

The trade sector recorded a 1.2 per cent growth in the first quarter of 2023, bringing an added value of Dh25.5 billion. The sector accounted for 22.9 per cent of the economy and contributed 10 per cent of overall recorded Q1 2023 growth.

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