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22 February 2024

Dubai continues its economic surge with 3.3% GDP growth in the first nine months of 2023

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By E247

Dubai has registered a 3.3% rise in real gross domestic product 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.

From bustling tourism hubs to tech-powered communications networks, Dubai's economic landscape illustrates the depth and wide-ranging nature of its diversification. 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.

Reflecting on the emirate’s recently released economic data, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, applauded Dubai's continued economic attractiveness.

"Dubai's sustained economic growth is a testament to the vision and strategic directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai," Sheikh Hamdan bin Mohammed said. "This success is 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." His Highness further noted that 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," Sheikh Hamdan added.

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.

His Excellency Helal Saeed Al Marri, Director General of Dubai’s Department of Economy and Tourism commented: “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.

“Our success is also a result of the continuous, collaborative efforts between the public and private sectors. Together, we are working within a unified framework to realise the objectives of the Dubai Economic Agenda D33. Our focus is not only on maintaining the current momentum but also on further strengthening an environment that enables businesses to thrive. 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.”

His Excellency Hamad Obaid Al Mansoori, Director General of Digital Dubai, said: "Recent data indicates that Dubai's comprehensive economic system operates with the highest levels of harmony and efficiency. This success is fuelled by the vision of our leadership, built upon an exceptional legacy of achievements, and propelled by a future vision with global reach that positions Dubai among the ranks of the world's most dynamic and competitive cities.

His Excellency Younus Al Nasser, Chief Executive of the Dubai Data and Statistics Establishment, Digital Dubai, said: "In today's world, real-time data is a true mirror of the economic reality of any city or country. The data we are witnessing on Dubai's performance in the first nine months of 2023 contributes to attracting investors looking for a better future in an economic environment that keeps pace with development and creates the best opportunities to turn economic results into inspiring and attractive success stories."

Hadi Badri, Chief Executive Officer of the Dubai Economic Development Corporation, Dubai Department of Economy and Tourism, said: "Dubai's economic performance is a clear reflection of the effective policies and initiatives that we have implemented as part of our long-term development roadmap. This strategy, envisioned and set forth by our leadership, is not just a plan but a reality that is coming to fruition in our emirate.

“Looking forward, we aim to solidify Dubai’s position as a top strategic priority for global business decision-makers in 2024. Our goal is to ensure that Dubai remains at the forefront of economic innovation and a hub for international investment, leveraging our unique position to offer unparalleled opportunities for the global market.”

Accommodation and Food Sector grows 11.1%
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 in the first nine months of 2022 was 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.

Transportation & Storage Sector expands 10.9%
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, an increase of 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.

ICT Activities rise by 4.4%
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%.

Real Estate Activities increase by 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.

Finance & Insurance Sector grows 2.7%
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. 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.

Education Sector expands 2.6%
The value added by the education sector in the first nine months of 2022 amounted to AED5.7 billion, rising to AED5.8 billion in the same period of 2023, a growth of 2.6%. Education is one of the vital activities that provides a measure of social and economic development.

Manufacturing Sector grows 2.2%
In a globally competitive landscape, Dubai's manufacturing sector demonstrated resilience, with a 2.2% growth, pushing its value to AED27.4 billion in the first nine months of 2023. This steady progress showcases the emirate's adaptability and commitment to fostering diverse industries.
Electricity, Water, and Waste Management Activities grow 2.2%

Dubai's lifeline industries - electricity, water, and waste management – grew 2.2% to reach AED10.9 billion in the first nine months of 2023. This increase reflects the rising demand for services in this sector.
Growth of other activities

As per Dubai Data and Statistics Establishment figures, many other activities showed growth. These included professional, scientific, and technical activities, which expanded by 1.9%, construction activities which rose by 1.6%, and wholesale and retail trade activities, which expanded by 1.5%. This multifaceted progress paves the way for Dubai’s sustained development and future success.