dubai-economy-statistics

Dubai Economy Statistics: Insights into Growth and Development

| Last Updated: February 17, 2025
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Key Insights

• Dubai’s gross domestic product (GDP) exceeded AED 115 billion in the first quarter of 2024, reflecting a 3.2% economic growth compared to the same period in 2023.
• From January to November 2024, Dubai received 16.79 million overnight visitors, marking a 9% increase compared to the same period in 2023.
• The manufacturing sector grew by 2.5% in the second quarter of 2024, reaching AED 10.6 billion, up from AED 10.34 billion in 2023.
• The electricity, gas, water, and waste management sector increased by 2.9% in the second quarter of 2024, reaching AED 4 billion, up from AED 3.88 billion in 2023. 
• The transportation and storage sector surged by 7.8% in the second quarter of 2024, reaching AED 15.85 billion.
• The financial and insurance sector climbed by 4.6%, reaching AED 13.16 billion, up from AED 12.58 billion last year.
• The wholesale and retail sector reached AED 28.68 billion in 2024, a 2.2% increase from 2023. 
• The accommodation and food services experienced a 4.7% growth, reaching a value of AED 3.54 billion.
• The information and communication sector continued to contribute 4.4% to Dubai’s GDP in the second quarter of 2024. It grew by 5.6%, reaching AED 5.13 billion and driving 7.4% of the overall growth.
• The real estate sector grew by 2.6% in the second quarter of 2024, making up 8.7% of Dubai’s GDP with a value of AED 10.15 billion.

Dubai stands as a key driver of the UAE’s economy and an international trade hub, known for its rapid and remarkable economic transformation and strategic position in international commerce. 

Historically, Dubai relied on oil and has since successfully diversified its economy, emerging as a center for finance, tourism, trade, and innovation.

Now following Abu Dhabi, Dubai is the second richest emirate in the UAE, and is the financial capital state of the UAE.

Dubai’s strategic initiatives, such as Vision 2030 to make the city a premier global business hub and Smart Dubai to make a smart, livable, and resilient city.

The Energy Strategy 2050 also aims to balance energy production with global environmental goals. It targets a 50% share of clean energy in the energy mix, alongside significant investments in clean technologies to save AED 700 billion.

dubai-inflation-rate

Dubai’s annual inflation rate dropped to 2.89% in December 2024 from 3.01% in November. 

As reference, the UAE’s average inflation since 1990 is 1.74%, with a peak of 12.3% in December 2008 and a low of -2.71% in May 2020.

Sectoral Contributions to Dubai’s Economy

Dubai’s economy is built on a diverse range of industries that drive its growth and global influence. The key industries such as trade, real estate, tourism, logistics, and financial services playing a pivotal role.

Here’s a table breaking down Dubai’s GDP contributions by sector in the second quarter of 2024 from:

SectorValue (AED Billion)Growth RateGDP ContributionContribution to Growth
Wholesale & Retail28.682.2%24.7%17.0%
Transportation & Storage15.857.8%13.6%31.3%
Financial & Insurance Activities13.164.6%11.3%15.6%
Manufacturing10.62.5%9.1%7.0%
Real Estate10.152.6%8.7%6.9%
Information & Communication5.135.6%4.4%7.4%
Electricity, Gas, Water & Waste4.02.9%3.4%3.1%
Accommodation & Food Services3.544.7%3.0%4.3%
Construction—1.8%——
Other Sectors—0.8%——
dubai-economic-growth-contribution

Dubai’s GDP growth in the second quarter of 2024 was driven by key sectors. 

Transportation and storage grew by 7.8%, contributing 13.6% to GDP and 31.3% to overall growth. Information and communication grew by 5.6%, while accommodation and food services saw a 4.7% increase.

The Q2 growth was similar to Q1, which brings the first half of 2024’s GDP to AED 231 billion. This is a 3.2% increase from the first half of 2023, reflecting steady expansion across sectors.

Dubai’s Role in Global Trade

Dubai has made itself as a leading global trade hub. It continues to leverage its strategic location, world-class infrastructure, and business-friendly policies to facilitate international commerce. 

As the commercial heart of the UAE, the city also plays a crucial role in connecting markets across Asia, Europe, and Africa, making it a key player in global trade flows.

In 2023, Dubai’s non-oil foreign trade reached AED 2 trillion, reflecting its growing influence in the global economy one year ahead of schedule. 

The emirate’s top trading partners include China, India, and the USA. Other significant partners also include Saudi Arabia, the UK, and Switzerland.

Moreover, Dubai’s economy thrives on a diverse trade portfolio, including exports (like gold, diamonds, and oils), imports (like machinery, pharmaceuticals, and food), and re-exports (electronics, luxury items, and industrial equipment).

The city’s strategic trade advantages were also driven by world-class ports and airports like Jebel Ali Port and Dubai International Airport. It also has over 30 free zones, such as JAFZA and DMCC, as well as advanced infrastructure for trade efficiency.

Tourism and Economic Impact in Dubai

Dubai saw a 9% increase in international tourist arrivals in 2024, with 16.79 million visitors between January and November, compared to 15.37 million during the same period in 2023.

The city’s appeal as a tourist destination attracts millions of visitors, boosting hotel revenues and benefiting various industries. This influx of tourists supports both high-end and budget accommodation, driving economic growth.

Major events like Expo 2020 were also instrumental in drawing millions of visitors, further boosting hotel revenues and other tourism-related industries.

Tourism contributed about 11% to Dubai’s GDP in 2023. The sector stimulates job creation, supports small businesses, and increases spending across retail, entertainment, and transportation, driving broader economic growth.

Real Estate and Construction in Dubai

In 2024, Dubai recorded 226,000 real estate transactions worth AED 761 billion, marking a 36% increase in volume and 20% rise in value.

The Dubai real estate market continues to thrive with rising property prices, strong off-plan sales, and high rental yields. Prime areas like Downtown, Palm Jumeirah, and Dubai Marina attract global investors, supported by initiatives like Golden Visas.

The city’s construction industry is also booming with large-scale developments, such as Dubai Creek Harbour, Expo City Dubai, and Palm Jebel Ali.

Moreover, Dubai’s growing real estate market supports the D33 Agenda. This aims to make Dubai a top 3 urban economy and double its GDP by 2033, according to the Crown Prince of Dubai.

Investment Climate in Dubai

Dubai has positioned itself as a premier destination for foreign direct investment (FDI), attracting businesses and investors worldwide. 

The city ranks 10th globally in FDI (UNCTAD 2023) and remains the top destination for greenfield FDI for the third year. In 2023, it secured 1,070 greenfield projects, surpassing New York, London, and Singapore.

On top of that, Dubai offers 100% foreign ownership, tax advantages, and world-class infrastructure, making it ideal for global businesses and entrepreneurs.

Its free zones also attract investors with tax benefits and streamlined regulations as well. This includes JAFZA, a global trade and logistics hub; DIFC, a top financial center for banking and fintech; and Dubai Silicon Oasis (DSO), a tech and innovation hub.

Digital Economy and Innovation in Dubai

Key developments in Dubai’s tech-driven policies include AI and automation to make government and businesses efficient, blockchain and fintech to be a global blockchain leader, and e-commerce to expand digital trade and payment solutions.

For one, Abdallah Abu-Sheikh, Founder of Astra Tech and CEO of Botim, stated that AI could contribute 14% of the UAE’s GDP by 2030, amounting to about $100 billion (AED 367 billion).

And as part of its smart city vision, Dubai integrates Internet of Things (IoT), AI, and big data to enhance urban living. Dubai Internet City (DIC) serves as a leading tech hub, attracting startups and global IT firms.

This is while Smart Dubai has established a fully digital, paperless government. Also, the Dubai AI Lab continues to advance AI-driven solutions across industries.

Challenges Facing Dubai’s Economy

Dubai’s economy faces several challenges, including inflation, global uncertainties, and oil price volatility, all impacting sectors like real estate, tourism, and trade. 

The city’s annual Consumer Price Index (CPI) inflation also rose to 3.0% in November 2024, up from 2.4% in October. This was the fastest price growth since August, with monthly inflation increasing to 0.5% from 0.2% in October.

Rising inflation in housing, food, and transport affects living costs and consumer spending. If wages don’t keep up with inflation, it could impact Dubai’s appeal to foreign workers.

Other than that, Dubai’s global economy is influenced by factors like trade policies, geopolitical tensions, and the lasting effects of COVID-19, creating market volatility that can affect investment and tourism.

Despite diversification efforts, oil price fluctuations still affect Dubai’s economy, especially through government revenues and infrastructure investments tied to oil.

References