Dubai economy and GDP records 2.8% growth in Q1 2023 to cross AED 111.3 billion

The Dubai economy and GDP grew by 2.8% (y-o-y) in the first quarter of 2023 to reach AED 111.3 billion. In doing so, Dubai also outpaced average global growth rates for Q1 2023. On top of that, the emirate continues to maintain robust growth momentum achieved in 2022 where it achieved a 4.4% GDP growth. It is to be noted that Dubai’s GDP growth in Q1 2023 is significantly higher compared to the most developed countries globally. The European Union (EU) grew by 1.1% while the US economy grew by 1.8% in the first quarter of 2023 (Organisation for Economic Cooperation and Development). 

According to the Dubai Data & Statistics Establishment of the Dubai Digital Authority, the biggest contributor to the overall growth of the Dubai economy and GDP was the transportation and storage sector for the first quarter of 2023. This was followed by the financial & insurance and trade sectors respectively. 

Dubai Transportation and Storage Sector GDP Growth 2023

The transportation and storage sector contributed overall 14.1% towards the Dubai GDP and 48% for Q1 2023. The transportation and storage sector grew by 10.3% in Q1 2023 compared to the same period in 2022. It generated AED 15.6 billion in added value. It included activities related to land, air and maritime transport for individuals and goods, handling and storage, postal services and related supporting activities. 

Dubai Finance and Insurance Sector GDP Growth 2023

The financial and insurance sector contributed overall 12.7% towards the Dubai GDP and 15% for Q1 2023. The financial and insurance sector grew by 3.2% in Q1 2023 compared to the same period in 2022, generating AED 14.2 billion in added value. 

Dubai Trade Sector GDP Growth 2023

The wholesale and retail trade contributed overall 22.9% towards Dubai’s GDP and 10% for Q1 2023. Likewise, the sector grew by 1.2% in Q1 2023 compared to the same period in 2022, generating AED 25.5 billion of added value. Earlier this week, the Dubai Chamber of Commerce reported a 43% increase in new companies during the first six months of 2023. As a result of this, the value of exports and re-exports have also surged. 

Dubai Accommodation and Food Services Sector GDP Growth 2023

The accommodation and food services sector contributed overall 4.1% towards Dubai’s economy and 8% towards Q1 2023. The sector grew by 5.6% in Q1 2023 compared to the same period in 2022, generating AED 4.5 billion in added value. During this period, Dubai welcomed 4.67 million international visitors. This was an 18% increase from 3.97 million international travelers compared to the same period in 2022 according to Department of Economy and Tourism data. International conferences and events were key factors in driving the growth of international visitors as the Dubai economy and tourism go hand in hand.

Dubai Real Estate Sector GDP Growth 2023

The real estate sector contributed 7.4% towards Dubai’s economy and 6% towards Q1 2023. The sector grew by 2.4% driven by the growth in property sales in the first quarter of 2023 according to Dubai Land Department figures. The growth of Dubai’s real estate sector is attributed to investor confidence in the property market. The real estate investments are expected to grow further with Dubai’s Strategic Plan 2026.

Meanwhile, other economic sectors contributed a combined 35.5% towards Dubai’s GDP and experienced a growth rate of 1.5% in Q1 2023, compared to the same period in 2022. 

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Dubai – The Leading Global Business Hub

The continued economic growth is a testament to Dubai’s capacity to create fresh pathways for endeavors and innovation to flourish. The emirate’s ability to sustain growth further speaks volumes about the robust infrastructure and business-enabling ecosystem. This makes Dubai a leading global business hub.

Furthermore, the Economic Agenda 33 will double the size of the Dubai economy over the next decade. It will consolidate the emirate’s status as one of the top three cities globally. It will also elevate its role in shaping the future of the global economy. Nonetheless, Dubai’s reputation as a major investment destination for all sectors has strengthened further. Thanks to government initiatives, Dubai has ensured accelerated momentum across core sectors. Likewise, strategies promoting economic diversification and entrepreneurial culture in Dubai have paved the way for investment across sectors.