Dubai's economy grows 3.3% in second quarter on tourism and technology sectors boost

The emirate's economy recorded 3.2% expansion in the first six months of 2024

For the first half of the year, Dubai's economy grew by 3.2 per cent to reach Dh231 billion. Bloomberg

Dubai’s economy grew by 3.3 per cent annually in the second quarter of 2024 to reach Dh116 billion ($31.58 billion), driven by non-oil sectors including tourism and technology.

Growth in the April-June period was slightly higher than the 3.2 per cent economic expansion recorded in the first three months of the year, as the emirate continues to focus on growing its non-oil industries.

For the first half of the year, the emirate’s economy grew by 3.2 per cent to reach Dh231 billion, the Dubai Media office said on Sunday.

“We will continue our ambitious journey, building on every success to reach new heights,” Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, said.

Dubai has become a "global model for sustainable growth and a leading economic hub", he said.

The latest data comes as Dubai aims to double the size of its economy to Dh32 trillion over the next decade and establish the emirate among the top three global cities as part of its D33 strategy.

The plan aims to support 30 private companies in their push to become so-called unicorns – start-ups worth more than $1 billion.

The D33 agenda also aims to make Dubai a global digital economy leader, the fastest-growing and most attractive global business centre, a hub for sustainability and economic diversification, as well as an incubator for talented Emiratis.

The emirate has maintained a robust growth momentum since bouncing back from the pandemic-induced slow down. A major trade, tourism and business centre in the Middle East, Dubai is attracting businesses and talent from all over the world with its more flexible visa schemes, infrastructure spending and its economic diversification programme.

Dubai's economic sectors have further been strengthened by the latest advancements in technology, and the emirate has rolled out initiatives to help businesses and residents adopt these innovations as it prepares for the economy of the future.

Dubai, along with Abu Dhabi, ranked first globally for ease of entry for global talent in this year's Global Cities Index released last week. The emirate also remained the world's top destination for greenfield foreign direct investment projects in the first half of 2024, despite challenging global economic conditions, a study from Financial Times's fDi Markets showed in October.

In the second quarter, several sectors drive the emirate's overall economic growth. The transportation and storage sector, which includes land, sea and air transport and logistics, expanded by 7.8 per cent year-on-year, driven by higher demand for air transport services.

The information and communication sector expanded by 5.6 per cent compared to the same period last year, while the accommodation and food service activities sector grew by 4.7 per cent amid a boom in tourism activity.

Dubai hosted 9.31 million overnight international visitors from January to June this year, up by about 9 per cent annually, aided by the emirate's push to strengthen and expand its tourism sector, the government data shows.

The manufacturing sector recorded a growth of 2.5 per cent during the quarter, while the electricity, gas, water and waste management sectors expanding by 2.9 per cent.

The financial services and insurance sector recorded a growth of 4.6 per cent. The wholesale and retail sector grew by 2.2 per cent year-on-year in the second quarter to reach Dh28.68 billion in value, contributing 24.7 per cent to Dubai's economy, according to the data.

The real estate sector grew by 2.6 per cent in the second quarter and its contribution to the economy reached 8.7 per cent, with a total value of Dh10.15 billion, as the property market in the emirate continues to boom amid higher demand for homes and commercial assets.

"The D33 strategy is already bearing fruit, consolidating Dubai’s position as a global economic leader, attracting investment, and fostering an ecosystem ripe for entrepreneurship and talent," Helal Al Marri, director general of the Dubai Department of Economy and Tourism, said.

“As we move forward, our focus will continue to be on accelerating innovation, embracing future technologies, and creating an inclusive, thriving business environment that aligns with our long-term goal of doubling Dubai's economy over the next decade."