UAE GDP continues upward trajectory
Dubai’s GDP grew 2.8% year-on-year in the first quarter of the year to reach AED111.3 billion (£23.7 billion), surpassing average global growth rates for Q1 2023.
According to a Dubai Data and Statistics Establishment report, the surge maintains the robust momentum of growth achieved in 2022, when the emirate experienced a 4.4% economic expansion.
Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, said: “The continued high growth in the first quarter of the year is yet another testament to Dubai’s strong fundamentals, sustainability and resilience and its capacity to constantly create fresh pathways for enterprise and innovation to flourish.
“Supported by its outstanding investment environment, robust infrastructure and business-enabling ecosystem, Dubai continues to outpace some of the world’s leading economies.”
“The introduction of the Dubai Economic Agenda D33, which seeks to double the size of the emirate’s economy over the next decade and consolidate its status as one of the world’s top three cities, has created a strategic springboard to usher in a new cycle of growth and value creation. Powered by the harmonious partnership between the public and private sectors, Dubai will continue to raise its role in shaping the future of the global economy,” Sheikh Hamdan said.
Data from the Organisation for Economic Cooperation and Development (OECD) indicate a seasonally adjusted growth of 1.6% for OECD countries. The European Union grew by 1.1%, while the US economy grew by 1.8% in the first quarter of the year.
The transportation and storage sector was the biggest contributor to overall growth at 48%. This was followed by the financial and insurance sector, which accounted for 15%, and trade at 10%, according to data issued by the Dubai Data and Statistics Establishment of the Dubai Digital Authority.
Hamad Obaid Al Mansoori, Director General of the Dubai Digital Authority, said: “We at Digital Dubai will continue to work in cooperation with other government entities to ensure the sustainability of the city’s economic momentum by providing a strong digital infrastructure and the highest standards of cybersecurity, in addition to seamless access to open data, all of which will enhance the investment climate and build an environment that supports growth and prosperity.”
Dubai Data and Statistics Establishment report found that wholesale and retail trade continued to be the largest contributor to the economy, accounting for 22.9% of GDP, followed by the transportation sector, which accounted for 14.1%.
Younus Al Nasser, CEO of the Dubai Data and Statistics Establishment, said: “Numbers have always been the true mirror that reflect the reality of economic activity, and today, with our entry into the era of artificial intelligence, the importance of data and statistics has increased not only in exploring the current reality, but also in foreseeing the future by analysing statistical patterns to enable decision-makers to make the right call.
“The data collected by the Dubai Data and Statistics Establishment reveals the significant economic progress the emirate is making, driven by the clear vision of our leadership, and the collaborative efforts of all stakeholders.”
1.2% growth in the trade sector
The trade sector recorded a 1.2% growth in the first quarter of 2023, compared to the same period in 2022, bringing an added value of AED25.5 billion. The sector accounted for 22.9% of the economy and contributed 10% of overall recorded Q1 2023 growth. It encompasses a wide range of companies dealing in various consumer and capital goods. Trade, which has a notable impact on various other activities, includes some of the largest companies in the country and the region, whose commercial activities cover a wide range of consumer and capital goods.
The report also found that financial and insurance activities recorded a growth of 3.2% in the first quarter of 2023, contributing 12.7% to the GDP. The sector accounted for 15% of Dubai’s overall Q1 growth. Data from the UAE Central Bank indicated a 3.5% growth in credit balances and a 14.9% growth in deposit balances compared to the same period last year.
