Dubai’s Economy Gains Momentum: Key Sectors Drive Growth in the First Half of 2023

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Trade activities achieved an added value of AED53.6 billion in H1 2023, growing by 1.7 percent compared to the same period in 2022

In the initial half of 2023, the economy of Dubai demonstrated a robust performance, drawing praise from H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council. With an impressive 3.2 percent expansion compared to the corresponding period in the previous year, the total value of the economy reached a substantial AED223.8 billion.

Sheikh Hamdan attributed this growth to the overarching objectives of the Dubai Economic Agenda D33, aimed at doubling GDP growth over the coming decade and solidifying Dubai’s position as one of the top three global urban economies. This surge, he emphasized, is a testament to the visionary approach of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, in nurturing human capital and fostering an environment conducive to the continuous evolution of Dubai’s investment landscape.

According to data from the Dubai Data and Statistics Establishment, several sectors notably contributed to this positive economic performance. Notably, transportation and storage led the charge with 42.8 percent, followed by trade at 12.9 percent, and financial and insurance activities at 9.9 percent. These sectors collectively contributed to approximately 93.9 percent of the H1 growth.

In response to the economic upturn, Helal Saeed Almarri, Director General of Dubai’s Department of Economy and Tourism, expressed satisfaction with the orchestrated implementation of the Dubai Economic Agenda, D33, in line with the broader vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum.

Additionally, Hamad Obaid Al Mansoori, Director-General of Digital Dubai, hailed the growth as a reflection of the government’s efforts to create a favorable investment climate, enhance business competitiveness, and promote digital transformation within the economy.

Younus Al Nasser, Chief Executive of Dubai Data and Statistics Establishment, underscored the resilience of Dubai’s economy and its commitment to achieving the targets set in the Dubai Economic Agenda D33. He highlighted the crucial role of comprehensive data in facilitating informed decision-making and forecasting for the future.

The report further emphasized the substantial contributions of key sectors such as trade, transportation and logistics, real estate, financial and insurance activities, and information and communications. Notably, trade activities accounted for 23.9 percent of the GDP and 12.9 percent of the overall growth, while the transportation and storage sector witnessed a notable growth of 10.5 percent.

Meanwhile, the hotel and food services sector reported a growth rate of 9.2 percent, driven by a significant increase in international visitors, reaffirming Dubai’s status as a premier global tourist destination. Real estate, financial and insurance activities, and information and communications sectors all contributed significantly to the overall growth, signaling a positive outlook for Dubai’s economic trajectory in the foreseeable future.