Dubai's gross domestic product at constant prices grew by 6.3 per cent annually in the first nine months of last year, helped by favourable government policies and supportive fiscal measures, according to official data.
The emirate’s GDP at constant prices registered 17.8 per cent growth in the second quarter of 2021, while the third quarter registered 6.3 per cent growth from the corresponding period in 2020, Dubai Media Office said on Monday, quoting a report from the Dubai Statistics Centre (DSC).
GDP growth between January and September was driven by the trading sector, which grew by 7.6 per cent annually, represented 25.4 per cent of the emirate’s economy, and helped the overall economy to grow by 1.9 percentage points.
The growth recorded by the trading sector also accounted for about 30 per cent of overall growth achieved in the emirate's GDP.
"The growth figures, which compare favourably with major global economies, reflects Dubai’s resilience, its success in curbing the Covid-19 pandemic, strategic policy measures, business support initiatives and growing investor confidence in the emirate, which has been strengthened by the successful hosting of Expo 2020," the Dubai Media Office said.
Dubai, the commercial and trading hub of the Middle East, has rebounded strongly from the pandemic after a well-rounded testing and inoculation campaign helped the emirate to open its economy safely.
Business conditions in Dubai's non-oil private sector economy were at their strongest level in two-and-a-half years in December, driven by a sharp increase in new orders thanks to an Expo 2020 Dubai demand boost and an improvement in the tourism sector.
The property sector is also making a strong recovery from the pandemic-induced slowdown. Dubai registered 84,196 property transactions worth Dh300 billion ($82bn) last year, which is the highest annual value recorded in the emirate’s history, according to the Dubai Land Department.
Property activities accounted for 9.2 per cent of the emirate's GDP in the first nine months of 2021, providing an added value of Dh27.2bn, and driving the emirate’s overall economic growth by 1.8 percentage points. The sector accounted for 29 per cent of overall growth.
Accommodation and food activities recorded a growth of 34 per cent in the first nine months of 2021, compared to the same period in 2020. The sector contributed 4.3 per cent to the emirate’s economic performance while increasing overall economic growth by 1.1 percentage points.
The DSC report also indicated an improvement in the hospitality sector. The number of guest nights in Dubai's hotels increased by 53 per cent in the first nine months of 2021 compared to the same period in 2020.
Transportation and storage activities, including passenger and freight transport, by land, water and air and associated activities such as terminal and parking facilities, cargo handling and storage, grew 3 per cent during the period and contributed 9.6 per cent to the economy.
Meanwhile, the manufacturing activity grew 3.7 per cent in the first nine months, accounting for 5.9 per cent of the entire growth achieved during the period.
Financial and insurance activities, which accounted for 10.8 per cent of Dubai’s total GDP, grew 4.4 per cent in the first nine months of 2021, driven by the banking sector.