Dubai's economy maintains momentum, GDP rises 2.8% in Q1 to cross $30 billion (2024)

Dubai’s gross domestic product (GDP) expanded 2.8% year-on-year in the first quarter of the year to reach AED 111.3 billion ($30.3 billion), according to official data released on Tuesday, supported by growth in the transportation and storage sector. In 2022, the emirate experienced a 4.4% expansion of the economy.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, said: “The continued high growth in the first quarter of the year is yet another testament to Dubai’s strong fundamentals, sustainability and resilience and its capacity to constantly create fresh pathways for enterprise and innovation to flourish."

Earlier this year, Dubai launched a 10-year economic plan known as D33 aiming to double the size of the economy and make Dubai one of the top global financial centres.

The transportation and storage sector was the biggest contributor to overall growth at 48%. This was followed by the financial and insurance sector, which accounted for 15%, and trade at 10%, according to data issued by the Dubai Data and Statistics Establishment of the Dubai Digital Authority.

Helal Saeed Al Marri, Director General of Dubai’s Department of Economy and Tourism, said: “We continue to see accelerated momentum across both core sectors and new growth segments for the economy, which is being further reinforced by strong cross-industry and public-private collaboration to deliver the vision of our leadership’s 10-year Dubai Economic Agenda D33."

Data released today showed that wholesale and retail trade continued to be the largest contributor to the economy, accounting for 22.9% of the GDP, followed by the transportation sector, which accounted for 14.1%.

Transportation and storage outperformed all other sectors with a significant growth of 10.3% in Q1 2023, compared to the same period last year. The sector contributed 48% to the overall recorded first quarter growth, bringing AED15.6 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.

The Dubai Data and Statistics Establishment report revealed that real estate activities grew by 2.4%, contributing 7.4% to the economy and 6% to the overall recorded growth, driven by the growth in real estate margins on property sales, which grew significantly in Q1 2023, according to Dubai Land Department figures.

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