Dubai’s Q2 2024 GDP Rises by 3.3%, Reaching Dh116 Billion with Strong Sectoral Growth
Dubai’s economy grew by 3.3% year-on-year in Q2 2024, reaching Dh116 billion, as announced by 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 is attributed to significant performance across key sectors and aligns with the ambitious economic and social goals laid out in the Dubai 2033 Plan and the Dubai Economic Agenda D33.
Sheikh Hamdan emphasized that Dubai’s growth reflects the vision and leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai. Guided by a collaborative spirit, Dubai aims to continue its journey as a global economic leader and model for sustainable growth.
Key Sectoral Performance Highlights
- Transportation and Storage Sector
- The transportation and storage sector experienced notable growth, increasing by 7.8% compared to Q2 2023. This sector contributed 13.6% to Dubai’s GDP and accounted for 31.3% of the overall growth. Air transport, a major driver within this sector, saw a 4.5% increase in passenger numbers due to rising demand for services from national carriers.
- Financial and Insurance Sector
- With a growth rate of 4.6%, the financial and insurance sector reached Dh13.16 billion in value, contributing 11.3% to Dubai’s GDP and driving 15.6% of the GDP growth. Banking activity showed strong performance, with average bank credit volume rising by 8.2% and deposits increasing by 13.3%, according to the Central Bank.
- Wholesale and Retail Sector
- As the largest contributor to Dubai’s GDP, the wholesale and retail sector grew by 2.2% to Dh28.68 billion, making up 24.7% of GDP and accounting for 17% of overall growth. Trade within this sector spans diverse goods, with several leading regional companies operating across product categories.
- Accommodation and Food Services
- This sector saw a 4.7% increase, reaching Dh3.54 billion in Q2 2024. It contributed 3% to GDP and accounted for 4.3% of overall growth. Dubai’s international tourism is a significant factor here, with 9.3 million visitors in the first half of 2024, reflecting a 9% year-on-year increase.
- Information and Communication
- Growing by 5.6%, the information and communication sector contributed 4.4% to Dubai’s GDP with a value of Dh5.13 billion. This growth aligns with Dubai’s goals to strengthen its economy through digital advancements and technology-focused strategies under the D33 Agenda.
- Real Estate
- The real estate sector grew by 2.6% in Q2, reaching Dh10.15 billion and contributing 8.7% to GDP. Sales within the sector increased by 38% year-on-year, supported by high investor demand and a thriving real estate market.
- Manufacturing and Utilities
- The manufacturing sector grew by 2.5%, valued at Dh10.6 billion, while the electricity, gas, water, and waste management sector grew by 2.9%, contributing 3.4% to Dubai’s GDP.
Other sectors also showed growth, with the construction sector increasing by 1.8% and other miscellaneous sectors by 0.8%.
Strategic Vision and Future Outlook
Dubai’s impressive economic performance showcases the city’s commitment to innovation, sustainability, and growth. Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism (DET), emphasized that this growth is driven by the Dubai Economic Agenda D33, which aims to double Dubai’s economy over the next decade. Dubai’s success also stems from a collaborative ecosystem where government and private entities work in harmony to foster a resilient business environment.
Looking forward, Dubai remains dedicated to leveraging emerging technologies and advancing sustainable development. As Director General of Digital Dubai, Hamad Obaid Al Mansoori, pointed out, the government’s commitment to digital transformation strengthens its position as a global leader, providing citizens with conditions for success, prosperity, and sustainable growth.
In summary, Dubai’s Q2 2024 GDP results reflect a well-balanced and strategically managed economy. By fostering growth across sectors, from transportation and finance to tourism and technology, Dubai is well-positioned to achieve its long-term objectives, creating opportunities for investors and reinforcing its standing as a global business hub.
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