Dubai records 3.3pc GDP growth for nine-month period
DUBAI, January 22, 2024
Dubai has registered a 3.3% rise in the real gross domestic product (GDP) in the first nine months of 2023, further demonstrating its economic strength, resilience and robust growth potential.
The achievement reflects the city's sustainable development strategies and its continued dynamism as a leading global economic powerhouse, reported Wam, citing the emirate’s recently released economic data.
From bustling tourism hubs to tech-powered communications networks, Dubai's economic landscape illustrates the depth and wide-ranging nature of its diversification, it stated.
Accommodation and food services activities witnessed a remarkable 11.1% growth, solidifying Dubai's position as a global tourism leader. Transportation and storage services followed suit, surging by 10.9%, highlighting the emirate's role as a prominent international logistics hub.
The information and communications sector, with a 4.4% increase, underscores Dubai's commitment to embracing cutting-edge technologies and fostering a thriving knowledge economy. This multifaceted growth across diverse sectors provides further evidence of Dubai's economic stability and adaptability, it added.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, pointed out that this success was the result of the harmonious collaboration between all of Dubai’s economic stakeholders, including its public and private sectors.
"It is also a reflection of Dubai’s favourable economic climate, robust world-class infrastructure, pro-business regulations and deep talent pool which together consistently draw in a diverse array of investors and entrepreneurs from all corners of the globe," he stated.
According to him, the latest growth figures paint a clear picture of progress towards the ambitious goals of the Dubai Economic Agenda D33, which aims to double the city’s economic growth and make it one of the world’s top three urban economies by 2033.
"To maintain this growth trajectory, we are focused on building on our strategic partnerships and further enhancing our frameworks for innovation, investment and enterprise, reinforcing Dubai's position as a leading global economic hub in the coming decade," said Sheikh Hamdan.
Dubai's economic engine saw vibrant activity in the first nine months of the past year, as revealed by the latest figures from the Dubai Data and Statistics Establishment. Real estate soared by 4%, while financial and insurance activities surged 2.7%.
The knowledge economy excelled with a 2.6% increase in education, while electricity, gas, water and waste management activities grew by 2.2%. Manufacturing saw a 2.2% surge, and the city witnessed a 1.9% rise in professional services.
Helal Saeed Al Marri, Director-General of Dubai’s Department of Economy and Tourism, said: "Dubai's economic performance continues to build on the robust, sustainable policy and business-first initiatives that have been actualised as part of the long-term development strategy launched by our visionary leadership for the emirate."
"We are committed to creating sustained and attractive investment opportunities across key sectors, laying a robust foundation for the next decade that will further bolster our resilience and position us as a global leader in a highly fluid and inter-dependable economic landscape," he stated.
As per the data, accommodation and food services activities grew by 11.1% in the first nine months of 2023, reflecting Dubai’s exceptional tourism strengths.
The value added by these activities rose to AED10 billion, growing in the same period in 2023 to AED11.1 billion. The contribution of these activities to GDP was 3.1% in 2022 and 3.4% for the same period in 2023.
This growth comes as Dubai continues to position itself as one of the world's leading hubs for attracting events, conferences and tourist groups from around the world.
In the first nine months of 2022, the value of Dubai's transport and storage sector reached AED38.7 billion, rising in the first nine months of 2023 to reach a robust AED42.9 billion, up 10.9%.
The contribution of transport and storage activities to GDP increased from 12.2% in the first nine months of 2022 to 13.1% in the same period of 2023. This growth reflects the development of the logistics sector driven by advanced infrastructure and high-performance economic activity.
Information and Communication Technology (ICT) activity represents the backbone of development in various fields and other sectors and is the basis for digital transformation initiatives and investments in the knowledge economy, and various other scientific fields.
While the value of this activity was about AED14.3 billion in the first nine months of 2022, it increased to AED15 billion in the same period of 2023, achieving a growth of 4.4%.
Dubai's real estate market remains firmly in the ascendant, with a 4.0% growth in added value within the first nine months of 2023.
This brings the sector's value to a robust AED26.8 billion, showcasing continued demand for both residential and investment opportunities across the emirate. The growth reflects Dubai’s continued attractiveness as a global real estate destination.
Dubai's financial and insurance sector, a significant contributor to the economy, posted a growth of 2.7%, reaching AED37.3 billion in the first nine months of 2023, said the Wam report.
This momentum reaffirms Dubai's commitment to building a dynamic and diversified financial ecosystem. With innovation and expansion on the horizon, Dubai's future as a leading financial hub remains secure, it added.
