Dubai’s GDP in the second quarter of 2024 grew 3.3 percent year-on-year to reach AED116 billion ($31.6 billion), His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai, said on Sunday.
Sheikh Hamdan emphasized the importance of cohesive teamwork and concerted efforts to achieve the targets outlined in the Dubai 2033 Plan, particularly the Dubai Economic Agenda D33 and the Dubai Social Agenda 2033, which aim to raise the emirate’s status as a global model for well-being and sustainable economic growth and enhance its role as an international investment and business hub.
“We will continue our ambitious journey, building on every success to reach new heights. Dubai today is more than a success story; it is an inspiring model for progress, where people’s aspirations and efforts shape a future filled with opportunity,” Sheikh Hamdan said.
The GDP growth in the second quarter of 2024 resulted from the enhanced performance of several vital sectors within the emirate’s economic framework. The transportation and storage sector experienced remarkable growth of 7.8 percent compared to Q2 2023, contributing 13.6 percent to Dubai’s GDP and 31.3 percent to overall growth. The information and communication sector recorded a growth rate of 5.6 percent compared to the same period last year. The accommodation and food service activities sector achieved a growth rate of 4.7 percent.
The second quarter performance closely matched that of the first, yielding similar growth rates for both quarters in the first half of the year. Second-quarter growth brought the total GDP in H1 2024 to AED231 billion, a 3.2 percent growth rate from the first half of 2023, reflecting steady growth across most sectors.
Manufacturing surges
The manufacturing sector recorded a growth rate of 2.5 percent, bringing its total value to AED10.6 billion in Q2 this year compared to AED10.34 billion in the same period last year. It contributed 9.1 percent to the emirate’s GDP, and 7 percent to the growth achieved in the second quarter.
Electricity, gas, water and waste management
The value of the electricity, gas, water, and waste management activities reached approximately AED4 billion in Q2 this year compared to AED3.88 billion during the same period last year, achieving a growth rate of 2.9 percent. It contributed 3.4 percent to the emirate’s GDP and 3.1 percent to growth achieved in Q2.
Transportation and storage
The transportation and storage sector achieved a total value of AED15.85 billion in Q2 this year, achieving a growth of 7.8 percent compared to the same period last year. It contributed 13.6 percent to the emirate’s GDP and 31.3 percent to the growth achieved.
Financial and insurance activities
This sector recorded a growth rate of 4.6 percent compared to the same period last year, with its value rising to AED13.16 billion from AED12.58 billion in the same period. Its contribution to Dubai’s GDP grew to 11.3 percent, driving growth by 15.6 percent. According to data from the Central Bank, the average volume of bank credit increased by 8.2 percent in the second quarter compared to the same period last year, while average deposits saw a rise of 13.3 percent.
Wholesale and retail
This sector leads in terms of value, having reached AED28.68 billion growing 2.2 percent from the same period last year, when its value was AED28.06 billion, contributing 24.7 percent to the GDP and driving growth by 17 percent.
Accommodation and food services
This sector experienced a 4.7 percent growth, reaching a value of AED3.54 billion, contributing 3 percent to the GDP, and 4.3 percent to growth.
Information and communication
This sector maintained its 4.4 percent contribution to Dubai’s GDP in the second quarter. However, it saw a growth rate of 5.6 percent, reaching a value of AED5.13 billion and driving growth by 7.4 percent.
Real estate
The real estate sector experienced a growth of 2.6 percent in the second quarter of 2024, accounting for 8.7 percent of Dubai’s GDP with a total value of AED10.15 billion and contributing 6.9 percent to growth. According to data from the Dubai Land Department, real estate sales increased by 38 percent year-on-year.
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