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Dubai GDP grows 3.3% in second quarter

Performance shows continues expansion across key non-oil sectors

Dubai’s gross domestic product (GDP) for the second quarter of 2024 grew 3.3 per cent year-on-year to reach Dh116 billion, data showed on Sunday.

The GDP growth in the second quarter of 2024 resulted from the enhanced performance of several vital sectors within the emirate’s economic framework, the Government of Dubai Media Office said in a statement.

The second quarter performance closely matched that of the first, yielding similar growth rates for both quarters in the first half of the year. Second-quarter growth brought the total GDP in H1 2024 to Dh231 billion, a 3.2 per cent growth rate from the first half of 2023, reflecting steady growth across most sectors.

The wholesale and retail sector leads in terms of value, having reached Dh28.68 billion growing 2.2 per cent from the same period last year, when its value was Dh28.06 billion, contributing 24.7 per cent to the GDP and driving growth by 17 per cent. Trade is a significant sector impacting various activities, as it includes some of the largest companies in the country and the region. The companies in this sector cover a wide range of goods, including end-user products, intermediate goods, and capital goods.

The transportation and storage sector experienced remarkable growth of 7.8 per cent compared to Q2 2023, contributing 13.6 per cent to Dubai’s GDP and 31.3 per cent to overall growth.

This sector covers all activities related to land and water transport, handling and storage, postal services, air transport, and supporting activities. Air transport is a key contributor to this sector, positively influenced by the increased demand for services from national carriers, with passenger numbers rising by 4.5 per cent in Q2 this year compared to the same period in 2023.

The financial and insurance sector expanded 4.6 per cent compared to the same period last year, with its value rising to Dh13.16 billion from Dh12.58 billion in the same period. Its contribution to Dubai’s GDP grew to 11.3 per cent, driving growth by 15.6 per cent. According to data from the Central Bank, the average volume of bank credit increased by 8.2 per cent in the second quarter compared to the same period last year, while average deposits saw a rise of 13.3 per cent.

The real estate sector experienced a growth of 2.6 per cent in the second quarter of 2024, accounting for 8.7 per cent of Dubai’s GDP with a total value of Dh10.15 billion and contributing 6.9 per cent to growth. According to data from the Dubai Land Department, real estate sales increased by 38 per cent year-on-year.

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Accommodation and food services experienced a 4.7 per cent growth, reaching a value of Dh3.54 billion, contributing 3 per cent to the GDP, and 4.3 per cent to growth.

Data from the Dubai Department of Economy and Tourism indicates that the emirate welcomed 9.3 million international visitors in H1 2024, a 9 per cent increase from the same period in 2023. This growth reflects the strong collaboration between the public and private sectors, as well as local and international partnerships, which have significantly bolstered Dubai’s standing as a premier global tourist destination, driving it closer to its goal of becoming the world’s best city to visit, live and work in.

The manufacturing sector recorded a growth rate of 2.5 per cent, bringing its total value to Dh10.6 billion in Q2 this year compared to Dh10.34 billion in the same period last year. It contributed 9.1 per cent to the emirate’s GDP, and 7 per cent to the growth achieved in the second quarter.

The value of the electricity, gas, water, and waste management activities reached approximately Dh4 billion in Q2 this year compared to Dh3.88 billion during the same period last year, achieving a growth rate of 2.9 per cent. It contributed 3.4 per cent to the emirate’s GDP and 3.1 per cent to growth achieved in Q2.

The information and communication sector maintained its 4.4 per cent contribution to Dubai’s GDP in the second quarter. It saw a growth rate of 5.6 per cent, reaching a value of Dh5.13 billion and driving growth by 7.4 per cent.

Apart from key sectors, others also saw varied growth rates. The construction sector grew by 1.8 per cent, while other sectors recorded a growth of 0.8 per cent.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai, said: “We will continue our ambitious journey, building on every success to reach new heights. Dubai today is more than a success story; it is an inspiring model for progress, where people’s aspirations and efforts shape a future filled with opportunity.”

Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism (DET), commented: “Dubai’s exceptional GDP growth in the first half of 2024 has been fueled particularly by key sectors—logistics, technology, and tourism—which are at the core of the Dubai Economic Agenda D33. These sectors underscore our city’s ability to leverage strategic foresight, innovation, and cross-sector collaboration, to build a resilient and sustainable economy. The D33 strategy is already bearing fruit, consolidating Dubai’s position as a global economic leader, attracting investment, and fostering an ecosystem ripe for entrepreneurship and talent.”

Hamad Obaid Al Mansoori, Director General of Digital Dubai, stated: “The second-quarter statistics of 2024 signal a new and promising chapter in Dubai’s journey, one driven by a dynamic economy that attracts investment, a thriving community, and a government that is leveraging the latest digital technologies to improve the lives of its citizens. The economic development we see today across various sectors is the result of the spirit of collaboration between Dubai’s diverse industries, with achievements driven by the collective success of both government and private institutions. Everyone benefits from advanced infrastructure, legislative frameworks, positive competition, and government excellence that paves the way for the future through ambitious digital transformations.”

Younus Al Nasser, CEO of the Dubai Data and Statistics Establishment, highlighted the pivotal role of digital data in shaping new economic dynamics. He said that real-time statistical analysis supports accurate forecasting and strategic planning, enabling the maximisation of positive outcomes. He said: “The true value of our economic data lies in its ability to provide an accurate picture of each sector’s contribution to comprehensive development. This is crucial for decision-makers in every organisation as they plan and strategise for the future, driving successes aligned with our overarching goals. These goals include positioning Dubai as a global hub for the new economy, grounded in sustainable development, digitisation, smart city solutions, and optimising the use of data as a key resource.”

Hadi Badri, CEO of the Dubai Economic Development Corporation (DEDC), the economic development arm of the Dubai Department of Economy and Tourism (DET), said: “Our exceptional economic growth in 2024 stands out globally, overcoming economic headwinds and outperforming many markets. This success is driven by coordinated efforts to attract investment, foster key sectors and advance innovation as part of the Dubai Economic Agenda D33. By streamlining processes for businesses, nurturing start-ups, and forging public-private partnerships, Dubai is accelerating sustainable and inclusive growth. As we progress, we remain committed to solidifying our position as a leading global hub for talent, investment, and technological advancement.”

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