Dubai’s GDP grows 2.8% in Q1 2023 to reach Dh111.3 billion

Dubai: Dubai’s real gross domestic product (GDP) grew 2.8 per cent year-on-year in the first quarter of the year to reach Dh111.3 billion, surpassing average global growth rates for Q1 2023.

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.

“The introduction of the Dubai Economic Agenda D33, which seeks to double the size of the emirate’s economy over the next decade and consolidate its status as one of the world’s top three cities, has created a strategic springboard to usher in a new cycle of growth and value creation. Powered by the harmonious partnership between the public and private sectors, Dubai will continue to raise its role in shaping the future of the global economy.”

Dubai’s growth in Q1 is significantly higher than that of some of the most developed countries. Data issued by the Organization for Economic Cooperation and Development (OECD) indicate a seasonally adjusted growth of 1.6 per cent for OECD countries. The European Union grew by 1.1 per cent, while the US economy grew by 1.8 per cent in the first quarter of the year.

Key sectors

The report revealed that wholesale and retail trade continued to be the largest contributor to the economy, accounting for 22.9 per cent of the GDP, followed by the transportation sector, which accounted for 14.1 per cent.

The trade sector recorded a 1.2 per cent growth in the first quarter, compared to the same period in 2022, bringing an added value of Dh25.5 billion.

Transportation and storage outperformed all other sectors with a significant growth of 10.3 per cent.

The accommodation and food services sector reported a 5.6 per cent growth rate, with an added value of approximately Dh4.5 billion. The sector contributed 4.1 per cent to the economy and 8 per cent to overall recorded growth in Q1.

Real estate activities grew by 2.4 per cent, contributing 7.4 per cent to the economy and 6 per cent to the overall recorded growth.

Financial and insurance activities recorded a growth of 3.2 per cent, contributing 12.7 per cent to the GDP and Dh14.2 billion in added value. The sector accounted for 15 per cent of Dubai’s overall Q1 growth.

Hamad Obaid Al Mansoori, Director General of the Dubai Digital Authority, said: “Dubai’s success in the economic field is an inevitable result of economic policies that express the vision of the leadership to make Dubai a leading global business and investment destination for all sectors. We at Digital Dubai will continue to work in cooperation with other government entities to ensure the sustainability of the city’s economic momentum by providing a strong digital infrastructure and the highest standards of cybersecurity, in addition to seamless access to open data, all of which will enhance the investment climate and build an environment that supports growth and prosperity.”

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.”