Dubai’s GDP tops $31.3 billion in Q1 2024, grows 3.2 percent

Originally published on Jul 26, 2024| Economy Middle East

Dubai's gross domestic product (GDP) grew 3.2 percent in the first quarter of 2024 compared to the same period last year, adding more than AED115 billion ($31.3 billion) in GDP terms, it was announced on Tuesday.

Several key sectors that constitute the basic pillars of the emirate's economic system contributed to this growth.

The transportation and storage sector, and the financial and insurance activities sector achieved identical growth rates of 5.6 percent, the trade sector logged a growth of 3 percent, the information and communications sector posted a growth of 3.9 percent, the accommodation and food services activities sector grew 3.8 percent, and the real estate sector achieved a growth of 3.7 percent.

The economic growth in the first quarter of the year mirrors the success story of 2023, when Dubai's GDP reached approximately AED429 billion, marking an increase of 3.3 percent compared to the 2022 figure of approximately AED415 billion.

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"Dubai's ambition is limitless, and its success story will remain a role model for cities wishing to create a promising future for their coming generations. Our goal is to sustain success and establish a culture of excellence and leadership across all sectors in the emirate to preserve these gains and move towards new horizons of excellence," said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai.

Helal Saeed Almarri, director general, Dubai Department of Economy and Tourism (DET), added: "Dubai's impressive quarterly growth performance underscores the sustained momentum and confidence within its dynamic business ecosystem, reflecting the robust diversification of our economic foundations. We remain committed to advancing the comprehensive economic framework set forth in Dubai's Economic Agenda 2033, continuously refining and leveraging various economic instruments to enhance competitiveness, attract substantial investment, and facilitate seamless business operations."

Transportation and storage

The growth recorded by the transportation and storage sector amounted to AED15.4 billion during the first quarter of the year, up 5.6 percent compared to the first quarter of last year. This sector contributed 13.4 percent to the emirate's GDP.

Financial and insurance activities

The financial sector achieved a real growth of 5.6 percent compared to the same period in 2023, reaching AED15.1 billion compared to AED14.3 billion in the first quarter of last year. This sector contributed 13.1 percent to the emirate's total economy.

Wholesale and retail trade

Data indicates that this sector maintained its lead in terms of contribution to the total GDP at 22.9 percent with a value of AED26.3 billion, compared to AED25.5 billion during the same period in 2023, achieving a growth rate of 3 percent. This increase pushed up the total growth in the emirate's economy by 0.7 percentage points.

Real estate activities sector

This sector is witnessing significant movement driven by high demand and launch of notable real estate projects across the emirate. The sector achieved a growth rate of 3.7 percent during the first quarter of 2024, contributing 7.3 percent to the emirate's GDP with a total value of AED8.4 billion, driving economic growth by 0.3 percentage points. Real estate activity maintained its upward trajectory in value-added growth during the first quarter. According to data issued by the Dubai Land Department, the value of real estate sales surged by 22 percent.

Utilities and waste management

The electricity, gas, water, and waste management activities sector added value amounting to AED3.2 billion during the first quarter, compared to AED2.98 billion during the same period last year, achieving a growth of 7.5 percent. This sector contributed 2.8 percent to the emirate's overall economy, driving growth by 0.2 percentage points.

Information and communications sector

This sector grew by 3.9 percent to reach a value of AED5.1 billion, driving economic growth by 0.2 percentage points. It contributed 4.4 percent to the emirate's GDP.