The Gross Domestic Product of Dubai showed a growth of 3.2 percent in the first fiscal quarter of 2024. This number is relatively higher than the growth of the year 2023 by comparing the data of that year to that of the year 2024. If we convert this in numbers, then the growth was approximately $31.3 billion in GDP. Now, you must know that several factors will contribute to the growth of the GDP of a country.
Let’s learn about the growth of Dubai’s Gross domestic product deeply of the year 2024 with simultaneous predictions of the year 2025. Not delaying any further, let’s have a look at it:
Which sectors contribute to the Growth of GDP?
As a finance geek, you must be aware that GDP can be impacted by several factors, here is the list of them:
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Transportation and Storage:
The growth rate of this sector has been quite drastic, as per reports the growth rate of this sector was 5.6% adding to the AED of 15.4 billion. Hence, the transportation sector represents 13.4% of the growth in the emirate economy.
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Financing and Insurance Activities:
Just like the transportation sector, this sector also showed its growth contributing to the GDP of Dubai. To explain in numbers, the growth in this sector was 5.6% as well reaching AED 15.1 billion. You can hold this sector accountable for the 13.1% growth in the Dubai’s GDP.
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Retail and Wholesale:
This company is generally the largest contributor to the Gross Domestic Product, growth in this sector was 3%. With a total of AED 26.3 billion. Do you know that it comprises 22.9% of the Dubai Economy? To sum it up overall, its contribution was 0.7% in economic growth.
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Real Estate Market:
The Dubai Properties demand was quite high and there were other noticeable projects as well. The contribution of this sector is 3.7% which is AED 8.4 billion. The sector boosted economic growth by 0.3 percentile points.
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Utilities and Waste Management:
This sector showed a growth of 7.5% by adding approximately AED 3.2 billion to the economy. In the total GDP, it accounted for 2.8%.
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Information and Communications:
Growing by 3.9% to reach AED 5.1 billion, this sector contributed 4.4% to Dubai’s GDP, driving growth by 0.2 percentage points.
The objective of Economic Growth
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum who is the crowned prince of Dubai, put more emphasis on the growth of all the sectors. He talked about various initiatives that the government is more likely to undertake to promote the Gross Domestic Product growth. His exact wordings were “Dubai’s success story serves as a model for cities aiming to build a promising future”.
Growth in 2025’s first quarter of Dubai
It’s hard to predict exactly how much Dubai’s economy will grow in the first quarter of 2025, but there are a few things that could help it grow. Dubai has been bouncing back well from the COVID-19 pandemic, with sectors like tourism and real estate improving. The legacy of Expo 2020, including better infrastructure and global attention, could also boost the economy. Dubai has been working on diversifying its economy, focusing on tech, renewable energy, and finance, which might help growth. Oil prices, though less important for Dubai than other parts of the UAE, can still impact the economy. Lastly, government efforts to attract foreign investments and innovation could also help. If all these things work out well, Dubai’s economy might see steady growth in early 2025, potentially around 2-4%.
Final Thoughts!
The economic growth illustrates Dubai’s strategic advancements across various sectors. As the emirate continues to diversify its economy and attract investment, it remains poised for further growth and development. Stay tuned for more insights into Dubai’s dynamic economy and its future prospects.