Hamdan bin Mohammed: Dubai's Q2 2024 GDP Grows 3.3% to AED116B

Photo : Dubai Government Media Office

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence of the UAE, and Chairman of the Executive Council of Dubai, has announced that Dubai's Gross Domestic Product (GDP) for the second quarter of 2024 has increased by 3.3% year-on-year, reaching a total of AED116 billion.

The Crown Prince attributed the strong economic performance to the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. He noted that the growth aligns with the ambitious goals set by Sheikh Mohammed for sustainable development in the emirate. This growth is also in line with the targets outlined in Dubai's strategic plans, particularly the Dubai 2033 Vision, which includes both the Dubai Economic Agenda D33 and the Dubai Social Agenda 2033. These initiatives aim to strengthen Dubai’s position as a global leader in well-being and sustainable economic growth, as well as enhance its role as an international hub for investment and business.

Sheikh Hamdan emphasized the importance of unified teamwork and collective efforts to achieve the goals set forth in the Dubai 2033 Plan, a blueprint for Dubai's long-term future. He expressed confidence that with continued progress, Dubai will continue to scale new heights, serving as a global model of progress and opportunity.

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In a statement on the economy’s performance, His Excellency Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism (DET), highlighted that the exceptional GDP growth in the first half of 2024 reflects the wise leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum and the guidance of Sheikh Hamdan. This growth is particularly driven by sectors that are at the core of the Dubai Economic Agenda D33—namely logistics, technology, and tourism. These sectors underscore Dubai’s ability to leverage strategic foresight, innovation, and cross-sector collaboration to build a resilient and sustainable economy.

Almarri also noted that the D33 strategy has already begun to bear fruit, as evidenced by Dubai’s rising status as a global economic leader, its ability to attract investment, and its thriving ecosystem that fosters entrepreneurship and talent. Moving forward, Dubai will continue to focus on accelerating innovation, embracing future technologies, and fostering an inclusive, thriving business environment that aligns with long-term economic growth.

Additionally, His Excellency Hamad Obaid Al Mansoori, Director General of Digital Dubai, remarked that the Q2 2024 economic performance signals a new chapter in Dubai’s development, driven by dynamic industries, a growing community, and government-driven digital innovation. The rapid economic progress is a result of collaboration between the public and private sectors, leveraging advanced technologies to enhance the lives of citizens and improve the business environment. He praised Dubai’s digital transformation and its efforts to build a global capital of the future.

Further supporting the importance of data, His Excellency Younus Al Nasser, CEO of the Dubai Data and Statistics Establishment, emphasized the role of digital data in shaping Dubai’s economic future. He explained that real-time data collection and analysis are key in forecasting trends and enabling strategic decision-making, helping Dubai plan its future development in line with its broader goals for sustainable growth and digital solutions.

In his comments, Hadi Badri, CEO of the Dubai Economic Development Corporation (DEDC), underscored Dubai's exceptional economic growth, particularly its resilience in the face of global challenges. He highlighted the contributions of key sectors, such as investment, innovation, and business development, in driving this success. Badri affirmed that Dubai remains committed to securing its position as a leading global hub for talent, investment, and technological advancement.

The GDP growth in the second quarter of 2024 reflects the enhanced performance of several key sectors in Dubai's economic landscape. For instance, the transportation and storage sector saw a remarkable growth of 7.8% compared to Q2 2023, contributing 13.6% to Dubai's GDP and driving 31.3% of the overall growth. The information and communication sector experienced a growth of 5.6%, while the accommodation and food service sector grew by 4.7%.

The manufacturing sector achieved a 2.5% growth, contributing AED10.6 billion to the GDP, while the electricity, gas, water, and waste management sector grew by 2.9%, contributing AED4 billion. The wholesale and retail sector recorded a modest growth of 2.2%, generating AED28.68 billion and contributing 24.7% to the GDP.

Dubai’s tourism industry also experienced significant growth, as the city welcomed 9.3 million international visitors in the first half of 2024, marking a 9% increase from the same period in 2023. The accommodation and food services sector saw growth of 4.7%, further boosting Dubai's standing as a top global tourist destination.

The real estate sector, which accounted for 8.7% of the GDP, grew by 2.6% in Q2 2024. Data from the Dubai Land Department revealed a 38% increase in real estate sales compared to the previous year. Moreover, the information and communication sector recorded an impressive 5.6% growth, while the financial and insurance activities sector grew by 4.6%, underscoring the strength and resilience of Dubai's diversified economy.

Overall, Dubai’s economic growth in the first half of 2024 reflects steady growth across multiple sectors, laying a solid foundation for the continued success and prosperity of the emirate in the years to come. With a focus on innovation, sustainable development, and investment, Dubai is on track to achieve its ambitious economic goals.