Results of new study reveal massive boom in Dubai's creativity

Dubai: Creative enterprises in Dubai rose 27 per cent from 2018 to 2019 while 2020 saw a 12 per cent growth from 2019, said a study on the performance of the emirate’s cultural and creative industries between 2018 and 2020.

The Dubai Culture and Arts Authority (Dubai Culture) on Tuesday unveiled the results of the study which followed a speech delivered by Sheikha Latifa bint Mohammed bin Rashid Al Maktoum, chairperson of Dubai Culture and member of Dubai Council at the World Government Summit during which she revealed statistics on the performance of the cultural and creative sectors in the emirate.

Developed in partnership with the Dubai Statistics Centre, the study reaffirms Dubai’s global competitiveness as a creative economy capital and a hub for creative talent.

Sheikha Latifa said that since being named as the first UNESCO Creative City of Design in the MENA region in 2017, Dubai has launched many ambitious initiatives to advance inter-city cooperation in the sector. Four years after joining the network, Dubai has consolidated its status as a global hub for design and a major centre for the cultural and creative economy, a key goal of the Dubai Creative Economy Strategy launched last year by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

Unique recognition

Sheikha Latifa further said that according to UNESCO, Dubai is the only city in its Creative City Network in the Middle East and North Africa region that has issued a framework for cultural statistics, an achievement that validates the emirate’s emergence as a major regional and global player in the creative sector.

She said the Dubai Framework for Cultural Statistics also reflects the emirate’s commitment to develop an integrated economic system for cultural industries that supports the creative community, and enables it to create new job opportunities for local talent, attract foreign investment and contribute further to the emirate’s GDP.

Dubai recognised very early that the creative economy plays a key role in promoting GDP growth and worked to build a strong culture of entrepreneurship and innovation in the sector, Sheikha Latifa said.

Elaborating further on the economic role played by creative industries, she said the strong performance of the creative sector has a positive impact on other major sectors such as industry, construction, real estate, commerce and tourism. The Dubai Creative Economy Strategy seeks to attract investments that go beyond traditional economic sectors as part of transforming Dubai into a preferred global destination for cultural, creative and artistic talent, Sheikha Latifa said.

Study results

The results of the study validate the success of Dubai’s strategy in supporting the cultural and creative industries and attracting creative talent, skills and entrepreneurs.

The period between 2018 and 2020 witnessed a steady growth in the number of enterprises operating in the cultural and creative industries.

In 2019, the number of creative enterprises surged 27 per cent to reach 13,144 from 10,351 enterprises in 2018. In 2020, the number of creative enterprises reached 14,771, a growth of 12 per cent from 2019.

Creative enterprises, workforce

These creative enterprises, in turn generated exceptional job opportunities. The total workforce within the sector reached 100,486 in 2018, which increased 7.5 per cent in 2019 to reach 108,019. Despite the impact of the pandemic, total employment witnessed an increase of 0.4 per cent in 2020 to reach 108,444. The creative sector’s share of total employment in economic sectors in Dubai increased from 3.4 per cent in 2018 to 3.6 per cent in 2019 and to 4.1 per cent in 2020.

Small and micro enterprises constituted the largest percentage (98 per cent) of the total number of creative enterprises. The number of micro and small enterprises in the creative industries reached 10,112 in 2018, and grew 27 per cent in 2019 to reach 12,884 enterprises. The year 2020 witnessed an increase of 12.5 per cent in the number of micro and small enterprises to reach nearly 14,500.

The significant growth reflects the Dubai Culture and Arts Authority’s strategic efforts to support creative entrepreneurs and SMEs and facilitate business growth through a package of incentives that includes long-term cultural visas for talent. The emirate’s attractiveness, infrastructure maturity and high quality of life as a smart city also contribute to attracting and retaining creative talent.

The Dubai Creative Economy Strategy, launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, in addition to a number of other strategic projects, including the Al Quoz Creative Zone, is expected to attract more creative companies and entrepreneurs to the emirate, fast tracking the achievement of its strategic goal to transform Dubai into the global capital of the creative economy by 2026.

Economic contribution

In terms of its contribution to the emirate’s overall economy, the creative industries’ share of GDP was four per cent in 2019 with value added of Dh 17.6 billion, to compared 2018, which saw a value added of almost Dh17 billion. According to preliminary estimates for 2020, the creative sector witnessed a growth decline of 11 per cent, which reflected the global slowdown across sectors due to the impact of the pandemic. The decline in the creative sector was mainly due to the drop in demand, especially for recreational goods and services.

The design and creative services sector contributed the highest in terms of value to the overall creative economy, accounting for 48.8 per cent of the total value added in 2018, 50.1 per cent in 2019, and 47.6 per cent in 2020.

After obtaining a membership in the Creative Cities Network in 2017, Dubai was the first city in the MENA region to win the title of Creative City of Design in the global network of 180 cities from 72 countries across the world.

The comprehensive sectoral study was done as part of activating the Dubai Framework for Cultural Statistics, an integrated statistical methodology developed by Dubai Culture in collaboration with the Economic Statistics Department team of the Dubai Statistics Center. The Framework outlines statistical descriptions and classification of the domains and activities in the emirate’s creative sector in line with international standards and best practices.

The statistical study evaluates the performance of the creative sector and identifies its strengths and weaknesses. Based on extensive data analysis, it also creates a database for the sector and develops statistical indicators that provide valuable information for formulating strategic plans and targets.

Dubai’s entrepreneurial dynamism

Hala Badri, director general of Dubai Culture, said the vibrance of Dubai’s creative and cultural sectors reflects the dynamism of Dubai’s entrepreneurial landscape and its emergence as a focal point for innovation. “Over the last two decades, Dubai has seen many innovative homegrown entrepreneurial ventures develop into significant players regionally and globally. These include Careem, which has transformed from a local ride-hailing company into a global company that was acquired by global transportation major Uber for Dh11 billion; Media.net, a Dubai-based advertising technology start-up, that was acquired for about US$900 million by a group of Chinese investors; and Souq.com, which was acquired by Amazon, apart from many others.

Badri added: “The new statistical study proves that despite the global repercussions of the pandemic, Dubai has continued to prove its resilience to worldwide economic fluctuations. The study revealed that the cultural and creative industries contributed 4.02 per cent to the emirate’s GDP in 2020, the same percentage of contribution achieved in 2019. The resilience of the sector reflects the leadership’s commitment to ensure its sustainability and strength during the pandemic.”

Arif Al Muhairi, CEO, Dubai Statistics Centre, said the partnership between the Dubai Statistics Center and the Dubai Culture is part of a framework of government integration created to support government policies and strategies.

The two organisations forged a close partnership to support the Dubai Creative Economy Strategy, which is a key driver of the emirate’s new economy based on knowledge and creativity. The study reflects the development of the emirate’s knowledge assets and the creation of an advanced scientific framework to assess the progress of key sectors, in accordance with international methodologies, best practices and standards, he said.

The Dubai Creative Economy Strategy aims to increase the number of creative and cultural companies and enterprises to 15,000 companies, providing 140,000 jobs in various sectors of the creative economy. It also seeks to raise the economic contribution of the creative economy to five per cent of the emirate’s GDP by 2026.