Dubai economy grows to 3.2% in the first half of 2023

The Dubai economy registered 3.2% growth for the first half of 2023 reaching a total value of AED 223.8 billion. The economic growth is aligned with the Dubai Economic Agenda D33 which aims to double the GDP growth in the next three decades. To make Dubai an attractive investment destination, the government is committed to accelerating all projects under D33. On similar lines, the UAE GDP grew by 3.7% in H1 2023 with the non-oil sector contributing 71% towards the economic growth. 

The Dubai economy growth achieved in H1 2023 is consistent with the first quarter wherein Dubai recorded 2.8% GDP growth in Q1 2023. This reflects the efforts of the government to create a favorable environment for investments. Other key goals include enhancing business competitiveness, increasing foreign trade and promoting digital transformation in Dubai and the UAE’s economy. 

Dubai Economy – Key Performing Sectors 2023

Transportation, wholesale and retail trade, financial and insurance, accommodation and food services sectors performed well and boosted Dubai economy and GDP growth. Similarly, sectors like real estate, information and communication and manufacturing recorded positive economic performance. These sectors combined contributed to 93.9% of H1 growth. According to Dubai Data and Statistics Establishment, The transport and storage sector led with a 42.8% contribution followed by trade (12.9%) and the financial and insurance activities sector (9.9%). 

Transportation and Logistics Sector

The transportation and logistics sectors recorded a growth of 10.5% in H1 2023 compared to the previous year. It generated AED 31.4 billion in added value and contributed 42.8% towards the first half growth of Dubai GDP. The sector includes activities such as land, maritime and air transports for individuals and goods. 

Trade Sector

Given Dubai’s geographic location, trade activities play a pivotal role in Dubai GDP growth and prosperity. The trade sector grew by 1.7% compared to the same period in 2022 and achieved an added value of AED 53.6 billion in H1 2023. It contributed 23.9% to Dubai GDP and 12.9% of total growth. 

Financial and Insurance Sector

The financial and insurance sector contributed 11.9% towards the GDP and added a value of AED 26.6 billion. The sector achieved 2.7% growth during H1 2023 and contributed 9.9% towards the total growth. 

Hotels and Restaurants Sector 

The hotel and food services sector reported a 9.2% growth rate in H1 2023. It added value of AED 7.9 billion, contributing 3.5% to the GDP and 9.5% to overall growth. Similarly, during H1 2023, Dubai welcomed 8.55 million international visitors recording 20% growth compared to the same period last year. Tourism growth has enhanced Dubai’s position as a leading travel destination globally as well as one that has recovered fastest compared to other destinations.

Real Estate Sector

The real estate sector grew by 3.6% contributing 8.2% to the economy and 9.2% to total growth. The attractiveness of the Dubai real estate sector led to increased sales in H1 2023. Furthermore, the transparent policies and the trust that the investors have have also contributed to the growth. 

Information and Communications Sector

The information and communication sector achieved a 3.8% growth in H1 2023 compared to the same period in 2022. It added a value of AED 9.6 billion and contributed 5% towards the total growth. 

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