In the second quarter of 2024, Dubai’s GDP increased by 3.3% annually to reach Dh116 billion ($31.58 billion), driven by non-oil sectors including technology and tourism.

The Government of Dubai Media Office said in a statement that the improved performance of a number of crucial sectors within the emirate’s economic framework was the reason for the GDP rise in the second quarter of 2024.

A testament to visionary leadership

Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism (DET), said: Dubai’s remarkable GDP growth in the first half of 2024 is a testament to the visionary leadership of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defense of the UAE, and Chairman of the Executive Council of Dubai, as well as the visionary leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai. 

The three primary industries driving this growth—logistics, technology, and tourism—are central to the Dubai Economic Agenda D33.

Comprehensive development

In the meantime, Digital Dubai Director General Hamad Obaid Al Mansoori said: “The second-quarter 2024 statistics mark a new and exciting chapter in Dubai’s history, one driven by a vibrant community, a dynamic economy that draws in investment, and a government that is utilizing the newest digital technologies to enhance the quality of life for its people. 

The wise leadership behind this achievement is dedicated to transforming Dubai into a worldwide metropolis and an exemplary example for future cities, providing its citizens with all the resources necessary for success, prosperity, and long-term development.

Accurate data

The CEO of the Dubai Data and Statistics Establishment, Younus Al Nasser, highlighted the essential role that digital data plays in forming new economic dynamics. According to Younus Al Nasser, precise forecasting and strategic planning are supported by real-time statistical analysis, which maximizes favorable results.

According to Al Nasser, the ability of our economic data to precisely represent the contribution of each sector to overall development is what gives it its genuine value. Every organization’s decision-makers need to know this to plan and strategize for the future and achieve outcomes that align with our main objectives. 

These objectives include establishing Dubai as a global center for the new economy, based on digitalization, smart city solutions, sustainable development, and maximizing the use of data as a vital resource.

Q2 Economic Performance

The performance of the second and first quarters was nearly identical, resulting in comparable growth rates for the first half of the year. With consistent development in the majority of industries, the second-quarter growth in H1 2024 pushed the overall GDP to Dh231 billion, a 3.2% growth rate from the first half of 2023.

Manufacturing

Compared to Dh10.34 billion in the same period last year, the manufacturing sector’s overall value increased by 2.5% to Dh10.6 billion in the second quarter of this year. It comprised 7.1 percent of the growth achieved in the second quarter and 9.1 percent of the emirate’s GDP.

Electricity, gas, water and waste management

In the second quarter of this year, the value of the waste management, gas, water, and power operations reached over Dh4 billion, up 2.9% from Dh3.88 billion in the same period last year. It contributed 3.4% to the GDP of the emirate and 3.1% to the growth that was achieved in Q2.

Transportation and storage

In Q2 of this year, the transportation and storage sector generated a total value of Dh15.85 billion, representing a 7.8% increase over the same time the previous year. It made up 31.3 percent of the growth achieved and 13.6% of the emirate’s GDP.

Postal services, air transportation, handling and storage, land and maritime transportation, and supporting operations are all included in this sector. With passenger counts increasing by 4.5% in Q2 of this year compared to the same period in 2023, air travel is a significant contribution to this industry. It is positively impacted by the growing demand for services from national airlines.

Financial and insurance activities

Compared to the same period last year, this sector saw a growth rate of 4.6%, increasing in value from Dh12.58 billion to Dh13.16 billion. It increased its share of Dubai’s GDP to 11.3%, driving growth by 15.6%.

According to data from the Central Bank, in comparison to the same period last year, average bank credit volume grew by 8.2% in the second quarter, while average deposits jumped by 13.3%.

Wholesale and retail

With a value of Dh28.68 billion, up 2.2% from the same period last year when it was valued at Dh28.06 billion, this sector leads in terms of value, driving growth by 17% and contributing 24.7% to the GDP. 

Since trade involves some of the biggest businesses in the nation and the region, it has a significant influence on a lot of different activities. The businesses in this industry deal with various items, such as capital goods, intermediate goods, and end-user goods.

Accommodation and food services

The value of this industry increased by 4.7% to Dh3.54 billion, making it a contributor to growth and 3% to the GDP.

The Dubai Department of Economy and Tourism reports that 9.3 million foreign visitors visited the emirate in H1 2024, a 9% rise over the same period in 2023. This expansion is the result of close cooperation between the public and private sectors as well as domestic and international alliances, which have greatly enhanced Dubai’s reputation as a top travel destination and advanced its ambition to become the greatest city in the world to visit, live, and work in.

Information and communication

This industry continued to contribute 4.4% of Dubai’s GDP in the second quarter. It did, however, rise at a rate of 5.6%, reaching Dh5.13 billion and contributing to a 7.4% growth. 

With the help of emerging technologies and in line with the Dubai Economic Agenda D33, which seeks to increase the emirate’s economic productivity through digital solutions, the sector’s outstanding performance reflects HH Sheikh Mohammed bin Rashid’s vision to establish Dubai as a central hub for the economy of the future.

Real estate

During the second quarter of 2024, the real estate sector grew by 2.6%, contributing 6.9% to growth and representing 8.7% of Dubai’s GDP, which was valued at Dh10.15 billion. According to figures from the Dubai Land Department, real estate sales increased 38% year over year.

In addition to essential sectors, other sectors saw different levels of growth. While other sectors had growth of 0.8%, the construction industry saw growth of 1.8%.