Led by the transportation and logistics sector, Dubai’s real gross domestic product (GDP) registered a 2.8% year-on-year growth in the first quarter of 2023, surpassing global average growth rates for the quarter to touch AED111.3 billion ($30 billion)
According to data issued by the Organisation for Economic Cooperation and Development (OECD), Dubai’s growth in Q1 2023 is significantly higher than many developed economies in the world and the emirate maintained its robust growth momentum seen in 2022, when it saw a 4.4% expansion in its economy,
The UAE news agency WAM reported that, in comparison, the seasonally adjusted growth for OECD countries was 1.6% for the quarter while the European Union grew by 1.1% and the US economy expanded 1.8%.
The transportation and storage sector gave the biggest fillip to Dubai’s GDP growth, expanding 48%, followed by the financial and insurance sector, which accounted for 15%, and trade at 10%, according to data issued by the Dubai Data and Statistics Establishment of the Dubai Digital Authority.
In terms of its overall share in the economy, the transportation sector accounted for 14.1% while wholesale and retail trade formed the biggest chunk at 22.9% of the emirate’s GDP, the report revealed.
Transport in the lead
Logistics, aided by Dubai’s various storage and transport hubs as well as the emirate’s aviation sector, was among the most significant contributors to the growth.
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, said the continued high growth in Q1 is yet another testament to the city’s strong fundamentals, sustainability and resilience and its capacity to constantly create fresh pathways for enterprise and innovation to flourish.
“The introduction of the Dubai Economic Agenda D33, which seeks to double the size of the emirate’s economy over the next decade and consolidate its status as one of the world’s top three cities, has created a strategic springboard to usher in a new cycle of growth and value creation,” he said.