Dubai GDP hits $31.5bn in Q2 2024 with 3.3 percent growth rate: Sheikh Hamdan

Dubai’s economy demonstrated continued strength in the second quarter of 2024, recording a 3.3 percent year-on-year growth to reach AED116 billion, 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, announced today.

The growth figures align with Dubai’s Economic Agenda D33 and Dubai Social Agenda 2033, which aim to position the emirate as a global investment hub and economic centre.

The results reflect the vision of Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, the Crown Prince said according to a statement by the Dubai Media Office.

Dubai records 3.3 percent GDP growth in Q2 2024 amid sector-wide expansion

“We will continue our ambitious journey, building on every success to reach new heights. Dubai today is more than a success story; it is an inspiring model for progress, where people’s aspirations and efforts shape a future filled with opportunity,” Sheikh Hamdan said.

The first half of 2024 saw the total GDP reach AED231 billion, marking a 3.2 percent increase from the same period in 2023.

The transportation and storage sector emerged as the primary growth driver, recording a 7.8 percent increase compared to Q2 2023. The sector contributed 13.6 percent to Dubai’s GDP and 31.3 percent to overall growth.

Air transport played a significant role, with passenger numbers rising by 4.5 percent compared to the same period in 2023.

“Dubai’s exceptional GDP growth in the first half of 2024 stands as a testament to the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and the direction of His Highness 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 has been fueled particularly by key sectors—logistics, technology, and tourism—which are at the core of the Dubai Economic Agenda D33,” Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism (DET) added.

The manufacturing sector recorded a 2.5 percent growth, reaching AED10.6 billion in Q2, while contributing 9.1 percent to the emirate’s GDP.

The financial and insurance sector demonstrated robust performance with a 4.6 percent growth rate, reaching AED13.16 billion.

Data from the Central Bank showed an 8.2 percent increase in average bank credit and a 13.3 percent rise in average deposits during the second quarter.

Tourism continued to strengthen, with Dubai welcoming 9.3 million international visitors in H1 2024, representing a 9 percent increase from 2023. The accommodation and food services sector grew by 4.7 percent, contributing 3 percent to the GDP.

The wholesale and retail sector maintained its position as the largest contributor to GDP, reaching AED28.68 billion with a 2.2 percent growth rate. The sector contributed 24.7 percent to the GDP and drove 17 percent of overall growth.

The information and communication sector recorded a 5.6 percent growth rate, reaching AED5.13 billion and contributing 7.4 percent to overall growth. This performance aligns with Dubai’s vision to become a hub for the future economy, supported by emerging technologies.

The real estate sector showed significant momentum, growing by 2.6 percent in Q2 2024 and accounting for 8.7 percent of Dubai’s GDP with a total value of AED10.15 billion. The Dubai Land Department reported a 38 percent year-on-year increase in real estate sales.

The electricity, gas, water, and waste management activities sector achieved a 2.9 percent growth rate, reaching approximately AED4 billion in Q2.

The construction sector grew by 1.8 percent, while other sectors recorded a collective growth of 0.8 percent.

Source: Arabian Business