The UAE’s Deputy Prime Minister, Minister of Defense, and Chairman of the Executive Council of Dubai, Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, announced that the emirate’s GDP grew 3.3% yearly to Dh116 billion in the second quarter of 2024.
The Crown Prince claims that Dubai’s economic performance reflects the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, the prime minister and vice president of the United Arab Emirates, as well as the ruler of Dubai, and is consistent with the high standards set by His Highness for sustainable development.
Sheikh Hamdan underlined the importance of peaceful cooperation and concerted efforts in order to achieve the objectives outlined in the Dubai 2033 Plan, particularly the Dubai Economic Agenda D33 and the Dubai Social Agenda 2033, which aim to enhance the emirate’s reputation as a global model for well-being and sustainable economic growth and fortify its position as a center for international investment and business.
Sheikh Hamdan restated that His Highness Sheikh Mohammed bin Rashid Al Maktoum’s objective of making Dubai a significant international economic center is in line with the city-state’s robust economic growth.
Sheikh Hamdan further said: “We will continue our ambitious journey, building on every success to reach new heights. Dubai today is more than a success story; it is an inspiring model for progress, where people’s aspirations and efforts shape a future filled with opportunity.”
A testament to visionary leadership
Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism (DET), commented: “Dubai’s exceptional GDP growth in the first half of 2024 stands as a testament to the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and the direction of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai. This growth has been fueled particularly by key sectors—logistics, technology, and tourism—which are at the core of the Dubai Economic Agenda D33.
“These sectors underscore our city’s ability to leverage strategic foresight, innovation, and cross-sector collaboration, to build a resilient and sustainable economy. The D33 strategy is already bearing fruit, consolidating Dubai’s position as a global economic leader, attracting investment, and fostering an ecosystem ripe for entrepreneurship and talent.”
“As we move forward, our focus will continue to be on accelerating innovation, embracing future technologies, and creating an inclusive, thriving business environment that aligns with our long-term goal of doubling Dubai’s economy over the next decade and the unwavering commitment to global competitiveness and sustainable development,” Almarri said.
Comprehensive development
Meanwhile, Hamad Obaid Al Mansoori, Director General of Digital Dubai, stated: “The second-quarter statistics of 2024 signal a new and promising chapter in Dubai’s journey, one driven by a dynamic economy that attracts investment, a thriving community, and a government that is leveraging the latest digital technologies to improve the lives of its citizens. This progress is underpinned by a wise leadership committed to making Dubai a global capital and an inspiring model for future cities that offers its people all the conditions needed for success, prosperity, and sustainable growth.
“The economic development we see today across various sectors is the result of the spirit of collaboration between Dubai’s diverse industries, with achievements driven by the collective success of both government and private institutions. Everyone benefits from advanced infrastructure, legislative frameworks, positive competition, and government excellence that paves the way for the future through ambitious digital transformations.”
Accurate data
Younus Al Nasser, CEO of the Dubai Data and Statistics Establishment, highlighted the importance of digital data in creating new economic dynamics. He claims that real-time statistical analysis supports strategic planning and accurate forecasting, maximizing positive outcomes.
Al Nasser stated, “The true value of our economic data lies in its ability to provide an accurate picture of each sector’s contribution to comprehensive development. This is crucial for decision-makers in every organisation as they plan and strategise for the future, driving successes aligned with our overarching goals. These goals include positioning Dubai as a global hub for the new economy, grounded in sustainable development, digitisation, smart city solutions, and optimising the use of data as a key resource.”
Exceptional economic growth
Hadi Badri, CEO of the Dubai Economic Development Corporation (DEDC), the economic development arm of the Dubai Department of Economy and Tourism (DET), said: “Under the visionary leadership of Dubai, our exceptional economic growth in 2024 stands out globally, overcoming economic headwinds and outperforming many markets. This success is driven by coordinated efforts to attract investment, foster key sectors and advance innovation as part of the Dubai Economic Agenda D33. By streamlining processes for businesses, nurturing start-ups, and forging public-private partnerships, Dubai is accelerating sustainable and inclusive growth. As we progress, we remain committed to solidifying our position as a leading global hub for talent, investment, and technological advancement.”
Q2 economic performance
The GDP grew in the second quarter of 2024 as a result of several key sectors in the emirate’s economic structure performing better. The transportation and storage sector experienced a remarkable 7.8% growth compared to Q2 2023, contributing 31.3% of overall growth and 13.6% of Dubai’s GDP. The information and communication sector expanded at a rate of 5.6% over the same time last year. The lodging and food service sector expanded at a rate of 4.7%.
The growth rates for the first half of the year were comparable because the performance of the first and second quarters was almost the same. The total GDP increased by 3.2% from the first half of 2023 to Dh231 billion in the second quarter of 2024, with steady growth in most sectors.
Manufacturing
The total value of the manufacturing sector grew by 2.5% to Dh10.6 billion in the second quarter of this year from Dh10.34 billion in the same period last year. It accounted for 9.1 percent of the emirate’s GDP and 7.1 percent of the growth achieved in the second quarter.
Electricity, gas, water and waste management
Waste management, gas, water, and electricity operations saw a 2.9% increase in value from Dh3.88 billion in Q2 of last year to approximately Dh4 billion in Q2 of this year. It accounted for 3.1% of the growth achieved in the second quarter and 3.4% of the emirate’s GDP.
Transportation and storage
The transportation and storage industry produced Dh15.85 billion in Q2 of this year, a 7.8% increase over the same period the year before. It accounted for 13.6% of the emirate’s GDP and 31.3 percent of the growth achieved.
This sector includes land and water transportation, postal services, air transportation, handling and storage, and supporting activities. Air travel is a significant contributor to this industry, and the higher demand for services from national carriers has a positive effect on it, as evidenced by the 4.5% increase in passenger numbers in Q2 of this year compared to the same period in 2023.
Financial and insurance activities
The value of this sector grew at a rate of 4.6%, from Dh12.58 billion to Dh13.16 billion over the same period last year. It boosted growth by 15.6% to account for 11.3 percent of Dubai’s GDP. According to Central Bank data, average bank credit volume increased by 8.2% in the second quarter compared to the same period last year, while average contributions increased by 13.3%.
Wholesale and retail
This sector is the most valuable, driving growth by 17% and contributing 24.7% of GDP, with a value of Dh28.68 billion, up 2.2% from the same period last year when it was valued at Dh28.06 billion. Trade has a significant impact on a wide range of activities because it involves some of the largest companies in the country and the region. Businesses in this sector deal with a wide range of products, including end-user, intermediate, and capital goods.
Accommodation and food services
This sector expanded by 4.7% to reach a value of Dh3.54 billion, contributing 3.3% to GDP and 4.3% to growth.
The emirate saw 9.3 million foreign visitors in H1 2024, up 9% from the same period in 2023, according to data from the Dubai Department of Economy and Tourism. This growth stems from the public-private sector’s close collaboration as well as domestic and foreign alliances, which have significantly improved Dubai’s standing as a top travel destination and furthered the city’s goal of becoming the best place in the world to visit, live, and work.
Information and communication
This industry continued to account for 4.4% of Dubai’s GDP in the second quarter. Despite this, it expanded at a 5.6% rate, reaching Dh5.13 billion and helping to drive a 7.4% growth. The sector’s exceptional performance aligns with HH Sheikh Mohammed bin Rashid’s vision to make Dubai a major hub for the future economy, supported by emerging technologies, and the Dubai Economic Agenda D33, which aims to boost the emirate’s economic productivity through digital solutions.
Real estate
The real estate industry expanded by 2.6% in the second quarter of 2024, accounting for 6.9% of growth and 8.7% of Dubai’s GDP, which was worth Dh10.15 billion. The Dubai Land Department reported that real estate sales increased 38% annually.
Apart from significant sectors, the growth rates of other sectors varied. The construction industry grew by 1.8%, while other sectors grew by 0.8%.
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