Dubai's economy expands 2.1% in first half of year

Transportation and storage expanded 6.2% according to the Dubai Statistics Centre

Dubai's economy expanded 2.1% in the first half of the year on the bank of transportation and storage. Courtesy of DIFC

Dubai economy accelerated an annual 2.1 per cent in the first half of the year, on rise in transportation and storage, according to data published by the Dubai Statistics Centre.

The emirate's gross domestic product at constant prices reached Dh208 billion in the first six months of the year, as transportation and storage expanded 6.2 per cent, the centre said. Trade grew 3.3 per cent on the back of higher external trade and re-exports, which grew 3 per cent in the first half.

"The flexibility of Dubai's economy and its business structure helped the emirate maintain its economic growth, despite the slowdown of the regional and global economy," said Arif Al Muhairi, executive director of the DSC, according to the state news agency WAM.

The wholesale and retail sector, which contributes 25.5 per cent to Dubai’s economic output, grew an annual 3.3 per cent, while external trade grew 17.7 per cent to Dh76bn.

The hospitality and restaurant industry, which accounts for 5.1 per cent of GDP, grew 2.7 per cent. Total visitors to Dubai in the first half of 2019 reached 8.4 million, a 3.2 per cent growth compared to the same period in 2018, according to data from the Department of Tourism and Commerce Marketing.

Manufacturing activity, which makes up 9.5 per cent of Dubai’s GDP, grew 0.3 per cent, from the year earlier period. Real estate activity which accounts for about 7.4 per cent of economic growth grew 2.1 per cent.

Mining, construction, professional activities, administrative services, public administration, education, health, arts, entertainment and other service activities and household activities which account for 23 per cent of GDP, grew 2 per cent.

Financial and insurance activities fell 1.4 per cent while information and communication declined 1.7 per cent. The sectors represent 17 per cent of GDP.