Dubai's economy expands 4% in Q1 2025; here are sectors driving growth
Health sector leads the charge in Dubai's Q1 2025 economic boom
Dubai: Dubai's economy has demonstrated robust health in the first quarter of 2025, recording a Gross Domestic Product (GDP) of Dh119.7 billion, a 4 per cent increase compared to the same period last year.
The most striking element of this growth came from the Human Health and Social Work sector, which surged by an impressive 26 per cent.
The performance of the health sector, with a total value of Dh1.9 billion, contributed 0.3 percentage points to Dubai's overall economic expansion.
This highlights the city's strategic focus on strengthening its healthcare infrastructure and its growing reputation as a hub for medical services.
The positive economic trajectory is a continuation of strong momentum from 2024, when Dubai’s economy expanded by a total of 3.2 per cent at constant prices. The city’s economic foundation remains broad and diversified, with multiple sectors contributing to the latest figures.
Top performing sectors
Other key sectors also showed significant growth in Q1 2025:
Real estate: A cornerstone of the economy, the real estate sector grew by 7.8 per cent with a value of Dh9 billion. It contributed 7.5 per cent to the emirate's GDP
Finance and insurance: This sector expanded by 5.9 per cent, reaching a value of Dh16 billion and contributing 13.4 per cent to Dubai's economy.
Wholesale and retail trade: As the largest contributor to the economy, this sector was valued at Dh27.5 billion, a 4.5 per cent increase. It accounted for 23 per cent of the total GDP.
Transport and storage: This sector, vital for Dubai's role as a global hub, saw a 2 per cent growth to reach Dh15.7 billion. Air transport was the biggest driver within this sector.
Accommodation and food services: This sector, a key component of Dubai's tourism industry, grew by 3.4 per cent to Dh4.9 billion.
According to Hadi Badri, CEO of Dubai Economic Development Corporation, the sustained and diversified growth underscores the city’s global appeal for businesses, investors, and entrepreneurs. The performance is seen as a key step toward achieving the goals of the Dubai Economic Agenda D33.
Data-driven decisions
The report also noted that a multi-year effort is underway to expand the data survey base and adopt international best practices, ensuring that economic indicators continue to be reliable and useful for all stakeholders.
The robust growth across these diverse sectors, particularly the standout performance in health and social work, points to a dynamic and resilient economy well-positioned to meet its ambitious future goals.
Younus Al Nasser, Chief Executive of the Dubai Data and Statistics Establishment, Digital Dubai, emphasized the importance of reliable data in this new era of artificial intelligence.
He stated that the Q1 results provide essential insights for policymakers and businesses, supporting the government’s forward-looking vision.
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