Dubai’s GDP grew 4.6 per cent year-on-year in the first nine months of 2022 to reach Dh307.5 billion, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, said on Monday.
“This exceptional performance is the result of the collective efforts of various entities to make Dubai a global leader across all sectors,” the Crown Prince tweeted.
Dubai’s responsive and efficient economic framework, along with its ability to track and anticipate demand trends in both the short and long terms, ensure that it can swiftly leverage opportunities and continue its ambitious journey to excellence, Sheikh Hamdan noted.
According to the latest economic report by the Dubai Digital Authority’s Dubai Statistics Centre, wholesale and retail trade accounted for 24.1 per cent of Dubai’s GDP during the January-September period this year, maintaining its position as the top contributor to the emirate’s economy. In terms of growth, the hospitality and F&B services outperformed all other sectors, with a year-on-year increase of 28 per cent during the year’s first nine months.
The transport and storage sector accounted for 2.5 percentage points or more than half of the 4.6 percentage-point growth in Dubai’s GDP in the first nine months of 2022.
“Dubai’s economy is founded on strong principles of income diversification by developing strategic sectors, promoting future-focused economic activities, implementing prudent fiscal policies, and constantly upgrading regulatory and legal frameworks to encourage investment and support business. Our strong partnership with the private sector, both locally and internationally, is a key enabler for sustaining our growth with a clear vision to maintain Dubai’s position at the forefront of various international competitiveness indicators,” Sheikh Hamdan added.
1.6% growth in trade activity
The wholesale and retail trade sector reached a value of Dh74 billion during the first nine months of 2022, growing by 1.6 per cent compared with the same period in 2021. The activity accounted for 24.1 per cent of Dubai’s nine-month GDP and contributed 9 per cent (more than 0.4 percentage points) to the emirate’s GDP growth.
26.3% growth in transport & storage
The transport and storage sector reached a value of Dh35.8 billion during the first nine months, growing by 26.3 per cent compared with the same period in 2021. The activity, which accounted for a 2.5 percentage point growth in the emirate’s GDP during the period, includes transportation of passengers and cargo by rail, road, water or air. It includes associated activities such as terminal and parking facilities, cargo handling, storage facilities, etc.
Within the sector, air transport contributed the lion’s share to its value and growth due to a significant increase in demand for air services. Dubai’s airlines witnessed a 151 per cent increase in the number of passengers they flew during the first nine months of this year compared with the same period last year, thanks to the easing of travel restrictions in most countries worldwide.
Helal Saeed Al Marri, Director General of Dubai’s Department of Economy and Tourism, said: “These positive economic indicators validate both the strength of Dubai’s business ecosystem to achieve robust and sustainable growth, and the government’s business-enabling policies, attractive fiscal measures, and investor-centric approach in delivering this.
“Under Dubai’s decisive leadership, we will continue to intensify our efforts, consolidate public-private partnerships, and enhance Dubai’s status as a magnet for global investment and talent. We strive to further improve the competitiveness of our economic and tourism pillars and related sectors, such as trade, retail, restaurants, and hotels – all of which have witnessed high growth.”
28% growth in accommodation & food services
In terms of growth in the first nine months of 2022, hospitality and F&B outperformed all other economic activities. Activity in the sector reached a value of Dh15.8 billion during the first nine months, growing by 28 per cent compared with the same period in 2021. The sector accounted for a 5.1 per cent share of Dubai’s GDP and a 26 per cent share (1.2 percentage points) of GDP growth during the nine months.
2.5% growth in real estate activity
Dubai’s real estate activity grew by 2.5 per cent year-on-year during the first nine months of 2022, accounting for a 9.1 per cent share of the emirate’s GDP and contributing 5 per cent (0.23 percentage points) to the overall GDP growth. The growth results from a 76 per cent year-on-year increase in real estate sales during the first nine months of the year, according to Dubai Land Department (DLD) data. The sector benefitted from the Dubai government’s economic stimulus packages and enhanced transparency, boosting investor confidence.
1.2% growth of the financial sector
Financial and insurance activities reached a value of Dh32.8 billion during the first nine months, growing by 1.2 per cent compared to 2021. The sector accounted for a 10.7 per cent share of Dubai’s GDP and a 3 per cent share (0.14 percentage points) of GDP growth during the nine months.