Dubai’s economy grew 3.2% in the first half of 2023 to reach $60.9 billion (AED 223.8 billion), driven by a 3.6% expansion in the second quarter of 2023, WAM news agency reported Sunday.
The positive economic performance was backed by growth in sectors such as transportation, wholesale and retail trade, financial and insurance, accommodation and food services, real estate, information and communication, and manufacturing. These sectors collectively contributed to 93.9% of the growth in the first half of the year.
The emirate's transportation and storage sector was the best performer amongst all other industries, expanding 10.5% in the first six months of the year, according to government data.
Dubai's trade sector expanded 1.7% year-on-year in the first half of the year, achieving an added value of $14.6 billion (AED 53.6 billion). It also contributed 23.9% of the economic output and 12.9% of total growth.
In the first quarter, Dubai's economy grew by 2.8% year-on-year to $30.3 billion (AED 111.3 billion), driven by growth in the transportation and storage sector.
Dubai's economy appears to be sustaining the growth momentum achieved in 2022 when it registered a growth rate of 4.4%.
“This economic expansion is consistent with the goals of the Dubai Economic Agenda D33 to double Gross Domestic Product (GDP) growth over the next decade and consolidate the emirate’s position as one of the world’s top three urban economies,” Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and chairman of The Executive Council, said, as per the report.
Dubai saw 8.55 million international visitors in the first half of 2023, up 20% year-on-year, according to the emirate's Department of Economy and Tourism. This exceeds pre-COVID-19 levels of 8.4 million international visitors in the first half of 2019.
The emirate's air transport sector benefited from higher demand for travel, with national airlines recording 56% rise year-on-year in passenger numbers in the first half of 2023.
The emirate's hotel and food services sector grew 9.2% in the first six months of 2023, adding $2.2 billion (AED 7.9 billion) to the economy. The sector contributed 3.5% to the GDP and 9.5% to overall growth.
