Dubai has seen some remarkable GDP growth in recent years, surpassing many cities in the world, however, they broke all records as they grew 3.2% in only the first quarter of the year which helped them surpass their last year’s GDP growth and hence adding 115 Billion in GDP terms. However, while this growth is certainly remarkable, there are multiple factors that over some time have contributed to this impressive growth.
Some of them include the transportation and storage sector and the financial and insurance sector which have achieved impressive growth of 5.6%. But its trade sector wasn’t behind either, as it has logged a growth of 3%, while its information and communication sector has recorded impressive growth of 3.9%. Similarly, the food sector grew at an impressive 3.8% and its real estate sector recorded a growth of 3.7%.
The economic growth in the first quarter of the year showcases similar remarkable growth as that of 2023 when Dubai’s GDP made headlines by reaching 429 Billion AED which marked an increase of 3.3%. Dubai continues to inspire the world with its success story and today stands as a huge hub of promising future for the coming generations. To understand the success story of Dubai’s GDP better, let’s break down the important elements and their growth, which have contributed to Dubai becoming one of the biggest growing cities in the world.
Expected GDP Growth during Q1 in 2025
The UAE Economy has been the strongest performer in the entire Gulf area with its robust oil sector and the growing tourism business in cities like Dubai. Moreover, there have been some cities here that have built world-class infrastructure and today is becoming one of the preferred destinations for many foreigners to invest and settle down. This has led to the growing surge of GDP in cities like Dubai which is expected to grow by 5% during the first quarter of Q1 during 2025.
Transportation & Storage
Growth recorded by the Transportation and Storage sector alone stood at an impressive figure of 15.4 Billion AED. It stood at an impressive growth of 5.6% in comparison to the first quarter of last year. This sector alone has been able to contribute to 13.4% of the economy of the Emirates.
Financial & Insurance Activities
This sector emerged as one of the rising stars during the Q1 period of 2024. It recorded a remarkable growth of 5.6% compared to the previous year, helping it reach 15.1 Billion AED compared to the 14.3 Billion AED figure of last year. Overall, this sector contributed 13.1% of the total Emirates economy.
Wholesale & Retail Trade
Recent data reflects that this sector has maintained its lead in contribution to the total GDP at 23% with a value of 26.3 Billion AED compared to its earlier GDP figure of 25.5 Billion AED.
Real Estate Activities Sector
In recent years, the real estate sector has grown significantly as the demand for housing projects like Damac Properties has surged. During the first quarter of 2024, the sector achieved a growth rate of 3.7%, contributing 8% of the Emirates’ GDP with a total value of 8.4 Billion AED. In the following year, Real Estate Market maintained its upward trajectory in Value Added Growth during the first quarter.
Utilities & Waste Management
Electricity, gas, water, and waste management activities sectors have added value which amounts to 3.2 Billion AED during the first quarter of 2024, compared to 2.98 Billion AED, achieving a staggering growth of 7.5%. This sector has been able to contribute 2.8% to the overall economy of the Emirate.
Information & Communication Sector
This sector grew by 3.9% to reach a value of 5.1 Billion AED, driving economic growth by 0.2%. In the process, it contributed to 4.4% of the overall GDP of the Emirate.
Conclusion
While Dubai has always been known as a tourist destination, it is slowly becoming a favorable destination for migrants to come and settle here. Especially as the economy continues to grow, and its GDP soaring at an all-time high, reflects the limitless potential of what the city has to offer in coming years.