Dubai Economic Growth Q1 2024: A Testament to Strategic Vision

Strong Economic Indicators and Strategic Vision

The Dubas economy has demonstrated robust growth in the first quarter of 2024, achieving a 3.2 percent increase compared to the same period last year. The Dubai economy and GDP grew by AED 115 billion (USD 31.3 billion). The emirate’s successes highlight the concerted efforts of various stakeholders in realizing the goals set out in Dubai’s comprehensive development plans for 2033, including the Dubai Economic Agenda (D33) and Dubai Social Agenda 2033. These initiatives aim to enhance overall well-being and quality of life while solidifying Dubai’s status as a global economic capital and an attractive destination for foreign investments.

Sectoral Contributions to Dubai Economy Growth

The first quarter of 2024 saw significant growth across various sectors of the economy. The transportation and storage sector, as well as the financial and insurance activities sector, both achieved growth rates of 5.6 percent. The trade sector grew by 3 percent, while the information and communications sector posted a 3.9 percent growth. Additionally, the accommodation and food services activities sector grew by 3.8 percent and the real estate sector saw a 3.7 percent increase. The strong performance across these sectors reflects Dubai’s diversified economic foundations and strategic initiatives aimed at fostering sustained growth.

Insights from Key Economic Leaders

Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism, emphasized Dubai’s impressive quarterly growth performance. Dubai’s economic growth further highlights the sustained momentum and confidence within its dynamic business ecosystem. The city remains committed to advancing its comprehensive economic framework, continuously refining and leveraging various economic instruments to enhance competitiveness, attract investment, and facilitate business operations. The Foreign Direct Investment Development Programme and the implementation of the Dubai Economic Model are instrumental in monitoring and energizing growth initiatives.

Hamad Obaid Al Mansoori, Director General of Digital Dubai, pointed out that the positive trajectory of economic growth indicators across various sectors shows that Dubai is moving confidently toward enhancing its economic leadership and investment attractiveness. The adoption of digital transformation and the focus on emerging technologies are pivotal in attracting entrepreneurs and fostering successful business experiences.

Research Konnection is a top-rated market research company in Dubai. Contact us at hello@researchkonnection.com for research inquiries, feasibility studies and business setup in Dubai.

Sectoral Analysis and Growth Trajectory of Dubai Economy

The Transportation and Storage sector recorded growth amounting to AED 15.4 billion (USD 4.2 billion) in the first quarter, a 5.6 percent increase compared to the same period last year. This sector contributed 13.4 percent to the emirate’s GDP. The performance was bolstered by increased demand for national carriers, with a 6.8 percent increase in passenger numbers.

The Financial and Insurance sector achieved a 5.6 percent growth, reaching AED 15.1 billion (USD 4.1 billion) compared to AED 14.3 billion (USD 3.9 billion) in the previous year. It contributed 13.1 percent to the total economy with notable growth in credit and deposit balances.

The Wholesale and Retail Trade sector maintained its lead in GDP contribution at 22.9 percent, with a value of AED 26.3 billion (USD 7.2 billion), achieving a growth rate of 3 percent. It plays a crucial role in supporting all other economic sectors by ensuring the availability of goods.

The Real Estate Activities sector was driven by high demand and notable projects, the real estate sector achieved a growth rate of 3.7 percent, contributing 7.3 percent to the GDP with a value of AED 8.4 billion (USD 2.3 billion). The value of real estate sales surged by 22 percent.

Utilities and Waste Management – This sector added value amounting to AED 3.2 billion (USD 871 million), achieving a growth of 7.5 percent and contributing 2.8 percent to the emirate’s economy.

The Information and Communications Sector grew by 3.9 percent reaching a value of AED 5.1 billion (USD 1.4 billion), contributing 4.4 percent to the GDP.

Accommodation and Food Services – Posting a growth of 3.8 percent with a value of AED 4.7 billion (USD 1.3 billion), this sector saw an 11 percent increase in international visitors, reaching 5.2 million in the first quarter.

The Manufacturing sector registered a growth of 1.6 percent, reaching a total value of AED 8.4 billion (USD 2.3 billion), contributing 7.3 percent to the GDP.

The Other economic sectors and activities grew by 0.46 percent, contributing 24.7 percent to the GDP. These activities include agriculture, mining, construction and professional services.