Dubai’s economy expands 3.2% on buoyant Q2 growth

Wam

Dubai’s economy grew 3.2 percent year on year in the first half of 2023 to AED223.8 billion ($60.93 billion), supported by a 3.6 percent expansion in real GDP in the second quarter.

The positive economic performance was driven by growth in sectors such as transportation, wholesale and retail trade, financial and insurance, and real estate, the UAE state-run Wam news agency reported.

These sectors collectively contributed to 93.9 percent of H1 growth. The transportation and storage sector leading with 42.8 percent, followed by trade at 12.9 percent and financial and insurance activities at 9.9 percent.

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Helal Saeed Almarri, director general of Dubai’s Department of Economy and Tourism, said the emirate is committed to accelerating all projects under Dubai’s economic agenda D33.

The 10-year economic plan seeks to double the size of the economy and make the emirate one of the top four global financial centres in the coming decade.

The trade sector expanded 1.7 percent yearly to AED53.6 billion in the first half, contributing 23.9 percent of the GDP and 12.9 percent of total growth.

Transportation and logistics outperformed all other sectors, with a significant annual growth of 10.5 percent in the first six months. It contributed 42.8 percent to the overall recorded first-half growth, adding AED31.4 billion to the economy.

Air transport’s performance was positively impacted by the increase in demand, as passenger numbers surged 56 percent in the first half year on year.

The hotel and food services sector reported a 9.2 percent growth, injecting AED7.9 billion into the economy. The sector contributed 3.5 percent to the economy and 9.5 percent to overall growth.

Dubai welcomed 8.55 million international visitors with 20 percent yearly growth, exceeding the number recorded before the pandemic, according to the emirate’s Department of Economy and Tourism.

Real estate activity grew by 3.6 percent, contributing 8.2 percent to the overall economy and 9.2 percent to total growth.

Financial and insurance activities grew 2.7 percent during the first half of 2023, adding AED26.6 billion to the economy.

Information and communications activity recorded a 3.8 percent gain, contributing AED9.6 billion to the economy.

Dubai’s real GDP rose 2.8 percent year on year in the first quarter of 2023, to reach AED111.3 billion ($30.3 billion).