Dubai economic system grows 3.2% in first half of 2023

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His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, has hailed the robust efficiency of the Emirate’s economic system within the first half of 2023.

With a progress of three.2 per cent within the first half of 2023, in comparison with the identical interval final 12 months, the economic system’s whole worth has reached AED 223.8 billion.

It was pushed by exceptional progress in sectors equivalent to transportation, wholesale and retail commerce, monetary and insurance coverage, lodging and meals providers, actual property, info and communication and manufacturing.

These sectors collectively contributed to roughly 93.9 per cent of H1 progress, with the transportation and storage sector main with 42.8 per cent, adopted by commerce at 12.9 per cent, and the monetary and insurance coverage actions sector at 9.9 per cent, based on figures launched by the Dubai Data and Statistics Establishment.

The distinctive efficiency was pushed by a 3.6 per cent progress in actual GDP in second quarter of 2023.

“The economic expansion is consistent with the goals of the Dubai Economic Agenda D33 and consolidate the Emirate’s position as one of the world’s top three urban economies,” Sheikh Hamdan mentioned, including that it displays the imaginative and prescient of Dubai Ruler His Highness Sheikh Mohammed bin Rashid Al Maktoum.

Trade actions achieved an added worth of AED 53.6 billion in H1 2023, rising by 1.7 per cent in comparison with the identical interval in 2022, and contributing 23.9 per cent of the GDP and 12.9 p.c of whole progress. Trade actions are important for Dubai’s economic system and for the broader area, as they successfully contribute to sustainability and financial prosperity.

Transportation and logistics outperformed all different sectors with a big progress of 10.5 per cent in H1 2023, in comparison with the identical interval final 12 months. The sector contributed 42.8 per cent to the general recorded first-half progress, producing AED 31.4 billion in added worth. The transportation and storage sector included actions associated to land transport for people and items, maritime transport, dealing with and storage, postal providers, air transport for people and items, and associated supporting actions.

Air transport accounts for the biggest proportion of the transport and storage sector given its sizeable quantity. The sub-sector’s efficiency was positively impacted by the rise within the demand for the providers of nationwide carriers, which recorded 56 per cent progress in passenger numbers within the first half of 2023, in comparison with the identical interval final 12 months.

The resort and meals providers sector reported a 9.2 per cent progress fee within the first half of 2023, with an added worth of about AED7.9 billion. The sector contributed 3.5 per cent to the economic system and 9.5 per cent to general progress The emirate welcomed 8.55 million worldwide guests with 20 per cent progress, in comparison with the identical interval final 12 months, exceeding the quantity recorded previous to COVID-19, when town welcomed 8.36 million worldwide guests within the first half of 2019, based on figures from Dubai’s Department of Economy and Tourism. This additional enhances Dubai place because the world’s favorite vacationer vacation spot. 

A report printed by Digital Dubai’s Dubai Data and Statistics Establishment confirmed that actual property exercise grew by 3.6 per cent, contributing 8.2 per cent to the general economic system and 9.2 per cent to whole progress. This was pushed by progress in actual property gross sales within the first half of this 12 months, based on knowledge from the Dubai Land Department, in addition to the pliability and attractiveness of the sector, the transparency assured to traders and the belief that they’ve within the sector.

Financial and insurance coverage actions achieved a progress of two.7 per cent in the course of the first half of 2023, contributing 11.9 per cent to the GDP, with an added worth of AED 26.6 billion, along with contributing 9.9 per cent to the whole progress. UAE Central Bank knowledge point out that the quantity of credit score and deposits grew by a mean of 9 p.c in comparison with the identical interval of the earlier 12 months.

Information and communications exercise recorded a 3.8 per cent progress within the first half of 2023, in comparison with the identical interval in 2022, reaching an added worth of AED 9.6 billion and contributing 5 per cent of the whole progress.

Meanwhile, different financial sectors achieved progress of 0.7 per cent in the course of the first half of 2023, and collectively contributed a mixed 6.1 per cent of the whole progress.