Dubai's economy grew with 3.3% GDP expansion in first 9 months of 2023

Multifaceted growth across diverse sectors provides further evidence of emirate's economic stability and adaptability

By WAM

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Published: Sun 21 Jan 2024, 3:02 PM

Last updated: Sun 21 Jan 2024, 5:59 PM

Dubai has registered a 3.3 per cent 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.

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 percent growth, solidifying Dubai's position as a global tourism leader.

Transportation and storage services followed suit, surging by 10.9 percent, highlighting the emirate's role as a prominent international logistics hub. The information and communications sector, with a 4.4 percent 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, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, applauded Dubai's continued economic attractiveness.

"Dubai's sustained economic growth is a testament to the vision and strategic directives of Sheikh Mohammed bin Rashid Al Maktoum, Vice-President, Prime Minister of the UAE and Ruler of Dubai," Sheikh Hamdan 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."

He 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 percent, while financial and insurance activities surged 2.7 percent. The knowledge economy excelled with a 2.6 percent increase in education, while electricity, gas, water and waste management activities grew by 2.2 percent. Manufacturing saw a 2.2 percent surge, and the city witnessed a 1.9 percent rise in professional services.

Accommodation and food sector

Accommodation and food services activities grew by 11.1 percent 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 percent in 2022 and 3.4 percent 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 and storage Sector

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 percent. The contribution of transport and storage activities to GDP increased from 12.2 percent in the first nine months of 2022 to 13.1 percent 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

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 percent.

Real estate activities

Dubai's real estate market remains firmly in the ascendant, with a 4.0 percent 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 and insurance sector

Dubai's financial and insurance sector, a significant contributor to the economy, posted a growth of 2.7 percent, 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

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 percent. Education is one of the vital activities that provides a measure of social and economic development.

Manufacturing sector

In a globally competitive landscape, Dubai's manufacturing sector demonstrated resilience, with a 2.2 percent 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

Dubai's lifeline industries - electricity, water, and waste management – grew 2.2 percent 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 percent, construction activities which rose by 1.6 percent, and wholesale and retail trade activities, which expanded by 1.5 percent. This multifaceted progress paves the way for Dubai's sustained development and future success.

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