DUBAI (ALETIHAD)
H.H. 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, announced that the emirate's GDP in the second quarter of 2024 grew 3.3 percent year-on-year to reach Dh116 billion.
The Crown Prince said Dubai's economic performance reflects the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, and aligns with the ambitious goals set by His Highness for sustainable development.
'Cohesive teamwork'
H.H. Sheikh Hamdan bin Mohammed emphasised the importance of cohesive teamwork and concerted efforts to achieve the targets outlined in the Dubai 2033 Plan, particularly the Dubai Economic Agenda D33 and the Dubai Social Agenda 2033, which aim to raise the emirate’s status as a global model for well-being and sustainable economic growth and enhance its role as an international investment and business hub.
H.H. reaffirmed that Dubai's robust economic growth aligns with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum to place Dubai at the forefront of global economic centres.
H.H. 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.”
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 H.H. 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.
Dubai Economic Agenda D33
"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.
Latest digital technologies
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."
Younus Al Nasser, CEO of the Dubai Data and Statistics Establishment, highlighted the pivotal role of digital data in shaping new economic dynamics. He said that real-time statistical analysis supports accurate forecasting and strategic planning, enabling the maximisation of 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.”
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."
Transportation and storage sector
The GDP growth in the second quarter of 2024 resulted from the enhanced performance of several vital sectors within the emirate's economic framework. The transportation and storage sector experienced remarkable growth of 7.8 percent compared to Q2 2023, contributing 13.6 percent to Dubai's GDP and 31.3 percent to overall growth.
Information and communication sector
The information and communication sector recorded a growth rate of 5.6 percent compared to the same period last year. The accommodation and food service activities sector achieved a growth rate of 4.7 percent.
The second quarter performance closely matched that of the first, yielding similar growth rates for both quarters in the first half of the year. Second-quarter growth brought the total GDP in H1 2024 to Dh231 billion, a 3.2 percent growth rate from the first half of 2023, reflecting steady growth across most sectors.
Manufacturing sector
The manufacturing sector recorded a growth rate of 2.5 percent, bringing its total value to Dh10.6 billion in Q2 this year compared to Dh10.34 billion in the same period last year. It contributed 9.1 percent to the emirate's GDP, and 7 percent to the growth achieved in the second quarter.
The value of the electricity, gas, water, and waste management activities reached approximately Dh4 billion in Q2 this year compared to Dh3.88 billion during the same period last year, achieving a growth rate of 2.9 percent. It contributed 3.4 percent to the emirate’s GDP and 3.1 percent to growth achieved in Q2.
The transportation and storage sector achieved a total value of Dh15.85 billion in Q2 this year, achieving a growth of 7.8% compared to the same period last year.
This sector covers all activities related to land and water transport, handling and storage, postal services, air transport, and supporting activities. Air transport is a key contributor to this sector, positively influenced by the increased demand for services from national carriers, with passenger numbers rising by 4.5 percent in Q2 this year compared to the same period in 2023.
Financial and insurance sector
The financial and insurance sector recorded a growth rate of 4.6 percent compared to the same period last year, with its value rising to Dh13.16 billion from Dh12.58 billion in the same period.
Its contribution to Dubai's GDP grew to 11.3 percent, driving growth by 15.6 percent.
According to data from the Central Bank, the average volume of bank credit increased by 8.2 percent in the second quarter compared to the same period last year, while average deposits saw a rise of 13.3 percent.
Wholesale and retail sector
The wholesale and retail sector leads in terms of value, having reached Dh28.68 billion growing 2.2 percent from the same period last year, when its value was Dh28.06 billion, contributing 24.7 percent to the GDP and driving growth by 17 percent.
Trade is a significant sector impacting various activities, as it includes some of the largest companies in the country and the region. The companies in this sector cover a wide range of goods, including end-user products, intermediate goods, and capital goods.
Accommodation and food services
The accommodation and food services sector experienced a 4.7 percent growth, reaching a value of Dh3.54 billion, contributing 3 percent to the GDP, and 4.3 percent to growth.
Data from the Dubai Department of Economy and Tourism indicates that the emirate welcomed 9.3 million international visitors in H1 2024, a 9 percent increase from the same period in 2023.
This growth reflects the strong collaboration between the public and private sectors, as well as local and international partnerships, which have significantly bolstered Dubai’s standing as a premier global tourist destination, driving it closer to its goal of becoming the world’s best city to visit, live and work in.
The information and communication sector maintained its 4.4 percent contribution to Dubai’s GDP in the second quarter. However, it saw a growth rate of 5.6 percent, reaching a value of Dh5.13 billion and driving growth by 7.4 percent.
Real estate sector
The real estate sector experienced a growth of 2.6 percent in the second quarter of 2024, accounting for 8.7 percent of Dubai’s GDP with a total value of Dh10.15 billion and contributing 6.9 percent to growth.
According to data from the Dubai Land Department, real estate sales increased by 38 percent year-on-year.
Apart from key sectors, others also saw varied growth rates. The construction sector grew by 1.8 percent, while other sectors recorded a growth of 0.8 percent.