Continued innovation is key to retaining Dubai’s resilience

Dubai’s economy expanded 4.6 per cent year-on-year to Dh307.5 billion during the first nine months of 2022, reflecting the emirate’s resilience underpinned by thriving public-private partnerships and prudent government policies.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, said on Monday the exceptional performance of the economy was the result of the efforts of various government and private entities to make Dubai’s economy a global benchmark in sustainability and resilience in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

“We call upon all sectors to continue innovating and pivoting to maintain Dubai’s leading position as a resilient and dynamic economy,” Sheikh Hamdan said, adding that the achievement is a testimony to Dubai’s burgeoning public-private partnerships and prudent policies.

A key growth driver was the hospitality and F&B sector, which outperformed all other economic activities with an exceptional 28 per cent growth in the first nine months.

“Dubai’s responsive and efficient economic framework, along with its ability to track and anticipate demand trends in both the short and long terms, ensure that it can swiftly leverage opportunities and continue its ambitious journey to excellence,” the Crown Prince said.

In 2022, the UAE’s GDP is projected to post a growth of 6.5 per cent as the economy remains firmly on track to double its size to Dh3 trillion by 2031. The Central Bank of the UAE, the International Monetary Fund as well as other global institutions are upbeat about the remarkable growth prospects of the economy going forward.

Sheikh Hamdan noted that Dubai’s economy is founded on strong principles of income diversification by developing strategic sectors, promoting future-focused economic activities, implementing prudent fiscal policies, and constantly upgrading regulatory and legal frameworks to encourage investment and support business.

“Our strong partnership with the private sector, both locally and internationally, is a key enabler for sustaining our growth with a clear vision to maintain Dubai’s position at the forefront of various international competitiveness indicators,” he said.

According to the latest economic report by the Dubai Digital Authority’s Dubai Statistics Centre, ‘Wholesale and Retail Trade’ accounted for 24.1 per cent of Dubai’s GDP during the January-September period this year, maintaining its position as the top contributor to the emirate’s economy. In terms of growth, the hospitality and F&B services outperformed all other sectors, with a year-on-year increase of 28 per cent during the year’s first nine months.

The transport and storage sector accounted for 2.5 percentage points or more than half of the 4.6 percentage-point growth in Dubai’s GDP in the first nine months of 2022.

Hamad Obaid Al Mansoori, director-general of Digital Dubai Authority, said the data emphasised the solid foundations of Dubai’s economy, reinforced by the government’s successful economic policies and programmes.

“Dubai presents a resilient economic model supported by rational leadership, a strong economic framework, dynamic workflow, robust infrastructure, and world-class quality of service.”

“These positive economic indicators validate both the strength of Dubai’s business ecosystem to achieve robust and sustainable growth, and the government’s business-enabling policies, attractive fiscal measures, and investor-centric approach in delivering this,” said Helal Saeed Al Marri, director-general of Dubai’s Department of Economy and Tourism.

Dubai’s wholesale and retail rade sector reached a value of Dh74 billion during the first nine months of 2022, growing by 1.6 per cent compared with the same period in 2021. The activity accounted for 24.1 per cent of Dubai’s nine-month GDP and contributed 9.0 per cent (more than 0.4 percentage points) to the emirate’s GDP growth.

The transport and storage sector reached a value of Dh35.8 billion during the first nine months of 2022, growing by a remarkable 26.3 per cent compared with the same period in 2021. The activity, which accounted for 2.5 per cent growth in the emirate’s GDP, includes transportation of passengers and cargo by rail, road, water or air.

Dubai’s airlines witnessed a 151 per cent increase in the number of passengers they flew during the first nine months of this year compared with the same period last year, thanks to the easing of travel restrictions in most countries worldwide.

In the first nine months of 2022, hospitality and F&B outperformed all other economic activities. The activity of the sector reached a value of Dh15.8 billion during the first nine months of 2022, growing by an exceptional 28 per cent compared with the same period in 2021.

The latest data from the Department of Economy and Tourism shows that Dubai hosted 10.12 million international visitors from January to September 2022 compared with 3.85 million visitors during the same period of last year, a remarkable growth of 163 per cent y-o-y.

Real estate activity grew by 2.5 per cent y-o-y during the first nine months of 2022, accounting for a 9.1 per cent share of the emirate’s GDP and contributing 5.0 per cent (0.23 percentage points) to the overall GDP growth. Financial and insurance activities reached a value of Dh32.8 billion during the first nine months of 2022, growing by 1.2 per cent compared to 2021.

— issacjohn@khaleejtimes.com

• Business