DUBAI, UAE – The Emirate’s economy grew 3.2 percent in H1 2023 to reach US$60.9 billion (AED223.8 billion). The performance was driven by a 3.6 percent growth in real GDP in Q2 2023.
Crown Prince of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum hailed the strong performance of the emirate’s economy in the first half of 2023.
“The economic expansion is consistent with the goals of the Dubai Economic Agenda D33 to double GDP growth over the next decade and consolidate the emirate’s position as one of the world’s top three urban economies,” Sheikh Hamdan said.
The emirate’s positive economic performance was driven by remarkable growth in sectors such as transportation, wholesale and retail trade, finance and insurance, accommodation and food services, real estate, information and communication and manufacturing.
These sectors collectively contributed to approximately 93.9 percent of H1 growth, with the transportation and storage sector leading with 42.8 percent, followed by trade at 12.9 percent, and the financial and insurance activities sector at 9.9 percent, according to figures released by the Dubai Data and Statistics Establishment.
Trade activities achieved an added value of US$14.5 billion (AED53.6 billion) in H1 2023, growing by 1.7 percent compared to the same period in 2022, and contributing 23.9 percent of the GDP and 12.9 percent of total growth.
Trade activities are vital for Dubai’s economy and for the wider region, as they effectively contribute to sustainability and economic prosperity.
Transportation and logistics outperformed all other sectors with a significant growth of 10.5 percent in H1 2023, compared to the same period last year.
The sector contributed 42.8 percent to the overall recorded first-half growth, generating US$8.5 billion (AED31.4 billion) in added value.
The transportation and storage sector included activities related to land transport for individuals and goods, maritime transport, handling and storage, postal services, air transport for individuals and goods, and related supporting activities.
Air transport accounts for the largest proportion of the transport and storage sector given its sizeable volume.
The sub-sector’s performance was positively impacted by the increase in the demand for the services of national carriers, which recorded 56 percent growth in passenger numbers in the first half of 2023, compared to the same period last year.
The hotel and food services sector reported a 9.2 percent growth rate in the first half of 2023, with an added value of about US$2.1 billion (AED7.9 billion).
The sector contributed 3.5 percent to the economy and 9.5 percent to overall growth.
The emirate welcomed 8.55 million international visitors, a 20 percent growth, compared to the same period last year, exceeding the number recorded prior to COVID-19, when the city welcomed 8.36 million international visitors in the first half of 2019, according to figures from Dubai’s Department of Economy and Tourism.
This further enhances Dubai position as the world’s favourite tourist destination.
The data issued by the DET underlines the emirate’s status as the fastest-recovering destination in the world.
A report published by Digital Dubai’s Dubai Data and Statistics Establishment showed that real estate activity grew by 3.6 percent, contributing 8.2 percent to the overall economy and 9.2 percent to total growth.
This was driven by growth in real estate sales in the first half of this year, according to data from the Dubai Land Department, as well as the flexibility and attractiveness of the sector, the transparency guaranteed to investors and the trust that they have in the sector.
Financial and insurance activities achieved a growth of 2.7 percent during the first half of 2023, contributing 11.9 percent to the GDP, with an added value of US$7.2 billion, in addition to contributing 9.9 percent to the total growth.
UAE Central Bank data indicate that the volume of credit and deposits grew by an average of 9 percent compared to the same period of the previous year.
Information and communications activity recorded a 3.8 percent growth in the first half of 2023, compared to the same period in 2022, achieving an added value of US$2.6 billion and contributing 5 percent of the total growth.
Meanwhile, other economic sectors achieved growth of 0.7 percent during the first half of 2023, and together contributed a combined 6.1 percent of the total growth.